News Tamil Nadu

ED Raids TANGEDCO Officials, ₹360 Crore Lying As FD In SIC Seized

April 27, 2023
The Commune

The Enforcement Directorate (ED) stated on Thursday that it searched multiple locations in Chennai belonging to officials of the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and South India Corporation (SIC), a Chettinad Group group company.

The ED said in a statement that a total of ₹360 crore was recovered during the raids. The searches were carried out last Friday, and the locations included the former director (coal) of TANGEDCO, government officials, and key management personnel of SIC and Western Agencies (Madras), according to the ED.

“Various incriminating documents, digital evidence, property documents, and ₹360 Crore lying as fixed deposits in the accounts of South India Corporation were seized during the searches,” the Enforcement Directorate said.

The investigation was opened in response to an FIR filed by the Directorate of Vigilance and Anti-Corruption in Chennai alleging fraudulently defrauding TANGEDCO, a PSU of the Tamil Nadu government, by claiming excessive payments for coal transportation from the Visakhapatnam port totaling hundreds of crores.

This loss to TANGEDCO occurred in collusion with TANGEDCO officials between 2001 and 2019. The initial six-month tender was extended for a period of 19 years due to an injunction petition filed by one of the related parties.

Apart from TANGEDCO, searches were carried out at a number of locations associated with Chennai-based Chettinad Group as part of an anti-money laundering investigation. The group is involved in a variety of businesses, including cement manufacturing, logistics, and construction, among others. The group’s offices in Chennai, Trichy (Tiruchirappalli), and a few other locations were raided. In December 2020, the Income-tax Department searched the company and claimed to have discovered tax evasion totaling more than Rs 700 crore.

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