block allocation scam. The ED had initiated investigation under Prevention of Money Laundering Act on the basis of an FIR registered by the CBI against Topworth Urja & Metals Ltd, formerly Shree Virangana Steels Ltd and its Directors under Indian Penal Code Sections relating to criminal conspiracy, cheating and forgery among others.
The firm, through fraudulent means and by making misrepresentation, got allotment of Marki Mangli II, III & IV coal blocks. As much as 921,748 tonnes of coal was extracted illegally during the period 2011-12 to 2014-15 and there was illegal gain to the extent of INR 52.50 crore by extracting the coal from these allocated coal blocks namely Marki Mangli-II and Marki Mangli-III. Further, there was benefit to the extent of INR 20.40 crore on account of sale of excess power generated out of captive power plants and sold to the connected grid. The company also generated the share capital by issuance of equity and preference shares on high premium pursuant to application and allocation of coal block and benefited to the extent of INR 96.72 crore.