The Enforcement Directorate (ED) has taken possession of a property worth ₹3 crore of Classic Coal Construction Private Limited in Ranchi in connection with a bitumen scam case in Jharkhand.
In the same case, it had attached property worth ₹2.91 crore and the attachment orders were confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act.
The ED probe is based on four FIRs and charge sheets filed by the CBI against Classic Coal Constructions, its former managing director Pawan Kumar Singh (since dead), director Dilip Kumar Singh, 22 engineers of the Road Construction Department of the Jharkhand government and two others. They were accused of cheating and criminal misconduct.
The company was mandated to procure bitumen from the government undertaking oil companies, including Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation and Bharat Petroleum, which was not done.
In alleged violation of the legal procedure, the company directors submitted 492 fake invoices related to HPCL, Ramnagar in West Bengal, to the Road Construction Department, showing procurement of 4,630 MT of bitumen for road works and received ₹6.88 crore as payment, in connivance with the departmental engineers.
The funds were used to create assets and to meet miscellaneous expenses of the company and its directors, the agency has alleged. The ED has so far filed two charge sheets against the firm and their directors and their trial is under way.