The Enforcement Directorate has attached assets worth close to Rs 245 crore belonging to Pramod Kumar Mittal, brother of steel giant Lakshmi Mittal. The agency has attached immovable properties worth Rs 244.89 crore of M/S Balasore Alloys Ltd. The attachment has been made in lieu of the proportionate share of Mittal and his company M/S Global Steel Holding Ltd in Balasore Alloys. Mittal is facing probe under sections of Prevention of Money Laundering Act (PMLA) for allegedly defrauding The State Trading Corporation (STC). The ED case is based on an FIR registered by CBI on March 16 this year. According to CBI and ED , Global Steel Holding Limited (GHSL) had sought financing facility from STC which had agreed without checking financial health of GSHL, thus exposing itself to financial risk. “GSHL availed financing facility for purchase of raw material for their Philippines-based steel plants on cash and carry basis. As per the agreement raw material/ goods had to be lifted only upon payments to STC whereas raw material was supplied despite payments not being made. Thus M/s GSHPL was favored by violating RBI guidelines, and STC exposed itself to financial risk and despite default in payment from the associates continued the transactions. The total default mounted up to Rs 2,112 crore approx,” an ED statement said. In May this year, ED had frozen 87,47,285 shares of Balasore Alloys Ltd having face value of Rs 4,37,36,423/- ( market value of Rs 62,10,57,206/- as on May 3, 2017). Investigations have revealed that Mittal and GSHL hold 30.35 per cent of the shares of Balasore Alloys Ltd through various Indian/foreign promoter and investment companies, and thus have proportionate share of 30.35% in the fixed assets of Balasore Alloys Ltd. “Accordingly, proportionate share of Shri Pramod Kumar Mittal and M/s Global Steel Holding Ltd in M/s Balasore Alloys Ltd which includes building, plant and machinery of M/s Balasore Alloys Ltd valued at approx. Rs 244.89 crore has been attached in lieu of the proceeds of crime,” the ED statement said.
