ED prosecution case against Chennai-based bizman

CHENNAI: The Directorate of Enforcement (ED) has filed a Prosecution Complaint at Principal Session Court, Chennai against Ahmed AR Buhari and six others in a money laundering case of overvaluation of coal prices whereby the Public Sector Undertakings paid a higher price for the purchase of lower quality of coal.

ED initiated the money-laundering investigation based on an FIR registered by the Central Bureau of Investigation (CBI), New Delhi against Ahmed AR Buhari of Coastal Energy Pvt Ltd, Chennai and other unknown officials of PSUs under various sections of IPC, an ED release said.

Investigation revealed that Ahmed Buhari is controlling the companies Coastal Energy Pvt Ltd, Chennai; Coastal Energen Pvt Ltd; Coal and Oil Group, Dubai; and other offshore entities located in Mauritius and the British Virgin Islands.

The PSUs were supplied coal of lower calorific value instead of the higher specification for which the tenders were floated and executed by the CEPL or MMTC and the coal was supplied by CEPL either directly or through MMTC on the strength of overvalued invoice for lower quality supported with fraudulent Certificate of Sampling and Analysis (COSA) whereas the original COSA depicting the genuine quality of coal was suppressed.

The investigation further revealed that Buhari generated proceeds of crime (POC) to the tune of Rs 564.48 crore from the overvaluation of coal. Ahmed Buhari had diverted the POC through various companies and finally integrated the same in the installation of a power plant by another company Coastal Energen.

Land, plant, machinery and other assets of Coastal Energen Pvt Ltd to the extent of Rs 564.48 crore was provisionally attached earlier.