New Delhi, 21 June

The Enforcement Directorate on Sunday said it has attached assets worth more than Rs 1,023 crore, including properties located in Singapore, in an alleged illegal iron ore mining case in Goa.

A provisional order has been issued on 19 June under the Prevention of Money Laundering Act (PMLA) in the matter pertaining to large-scale illegal iron ore mining by the Salgaocar Groups and associates (AVS Group), the central agency said in a statement.

The attached assets include 99 immovable properties located in India (Rs 459.10 crore), 31 immovable properties in Singapore (Rs 471.32 crore) and equity shares in Indian companies (Rs 93.42 crore) held in the names the Estate of Late Anil Salgaocar (through its administrator Lakshmi Anil Salgaocar), Salgaocar Mining Industries, Shantilal Khushaldas & Brothers, S Kantilal & Co., Salitho Ores, Vertex Newton Projects. and Subarnarekha Port, according to the ED.

The total value of the assets is Rs 1,023.85 crore.

The money laundering investigation stems from an FIR of the Goa Police CID. The ED said the Supreme Court, through its judgments in 2014 and 2018, has held that all mining undertaken in Goa after 22.11.2007 (till issue of fresh mining leases) was illegal.

The agency alleged that its probe found AVS Group operated ten mining leases during 2007-12 and generated proceeds of crime of Rs 2,492.95 crore from the illegal extraction, sale and export of iron ore.

The "illegally" mined ore was exported at "grossly undervalued" prices to shell entities (special purpose vehicles) incorporated in the British Virgin Islands, which acted as mere paper intermediaries and resold the ore to China, generating further offshore trade profits of Rs 2,744.89 crore.

The total proceeds of crime are calculated at Rs 5,237.84 crore, as per the agency.

"These funds were layered through BVI and Singapore-based SPVs, utilised to acquire substantial movable and immovable assets abroad, and partly routed back into India in the guise of share capital," the ED alleged.