Under the terms of the Prevention of Money Laundering Act, the Directorate of Enforcement (ED), Bengaluru Zonal Office has temporarily attached assets worth Rs.5.21 crore in a case involving illegal mining. Six immovable properties owned by the defendants are among the assets attached.
On the basis of directions issued by the Hon’ble Supreme Court of India, the ED initiated an investigation under the Prevention of Money Laundering Act, 2002 against M/s Mineral Enterprises Ltd., unknown government employees, and other unknown persons under various sections of the Mines and Minerals Development Regulation Act, 1957 and the Prevention of Corruption Act, 1988.
The case involves multiple dealers trading illegally mined iron ore. Following an inquiry under the PMLA, it was discovered that iron ore was unlawfully mined, transported, and marketed without appropriate licences, resulting in a loss to the exchequer. It was also discovered that the source of such illegal iron ore is two mines owned by S.B Minerals with partners BP Anand Kumar, Panduranga Singh, and Gopal Singh, one mine owned by Smt. Shanthlakshmi and J Mithyleswar, and one mine owned by Bharat Mines and Minerals with partners M/s BMM Ispat Ltd. and Dinesh Kumar Singhi.
Previously, the Centrally Empowered Committee formed by the Hon’ble Supreme Court of India found grave illegalities/encroachment with respect to these four mines and maintained them in C Category, and on the basis of its recommendation, the Hon’ble Supreme Court terminated their licences. According to the findings of the PMLA investigation, the accused people caused unjust losses to the government and commensurate wrongful gain to themselves. Further research is being conducted.
