The Enforcement Directorate probe into Northern Coalfields Limited (NCL) fraud case has revealed that a businessman siphoned off ₹25 crore of the coal PSU by fabricating documents and diverted the money to his company’s bank account in Chennai.

To perpetrate the fraud, TV Krishna Rao was allegedly helped by co-accused VK Sai Kumar. The ED has now provisionally attached 5 immovable properties -- such as land and residential flats -- located at Hyderabad in Telangana and Thiruvallur in Tamil Nadu under the Prevention of Money Laundering Act (PMLA), said the agency. The assets belonged to Rao and Kumar, and are valued at ₹1.24 crore, the ED pointed out.

In order to siphon off funds of NCL, Rao fabricated the documents and fraudulently got transferred ₹25 crore, sent by M/s. Northern Coalfields Limited (M/s. NCL) to Central Bank of India for the creation of FDR/TDR in their name for a period of one year, into his company - M/s. Krishnaa Builder’s current account is also held in the same bank. The company’s account was in Mogappair Branch of the Central Bank of India in Chennai.

Kumar joined hands with Rao and accepted ₹6 crore out of the ill-gotten amount of Rs.25 crore into the current A/c of his company - M/s SWAL Computers Ltd, the ED probe has revealed.

So far, 12 Provisional Attachment Orders, having value of ₹8.95 crore, have been issued and confirmed by the Adjudicating Authority, PMLA, New Delhi, the ED stated. The agency subsequently filed prosecution complaint or chargesheet before Principal Sessions Judge, Delhi, and the case is under trial.

The ED its attempt to dig out remaining proceeds of crime, identified more properties having value of ₹1.24 crore and accordingly provisional attachment order was issued, said the agency. The worth of total attachment in this case is ₹10.19 crore.

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