Coal scam: ED to probe ex-officials of Tangedco

Chennai: In what could spell trouble for former Tangedco top brass who served during the period 2001-2019, the Enforcement Directorate has decided to investigate them in connection with a 1,200-crore scam in handling coal at Visakhapatnam port.
The ED believes that apart from those named in the FIR registered by the directorate of vigilance and anti-corruption (DVAC), other officials must also be involved in the case.This was after a four-day search at 10 locations in the city. These included properties of a former director of coal of Tangedco, other government officials, South India Corporation (SIC), a group company of the Chettinad Group, and key personnel of SIC and Western Agencies (Madras) Private Limited.
The ED seized digital evidence and property documents, apart from 360 crore in fixed deposits in the accounts of SIC.
The investigation was initiated based on a DVAC FIR for cheating Tangedco by claiming excessive payments for coal transportation from Visakhapatnam port. This loss to Tangedco occurred between 2001 and 2019, the ED said. The initial tender awarded for six months was extended for 19 years based on an injunction petition filed by one of the related parties, it said.
According to the DVAC FIR, though SIC’s contract to transport domestic coal from collieries to the ports ended in 2001, the firm continued to handle coal till 2019 by obtaining an interim injunction from the court not to open the fresh tender, in collusion with another tender applicant Western Agencies Madras Pvt Ltd.
The FIR also said that SIC paid just 234.4 crore to Visakhapatnam port for labour as well as levy for the period 2011 to 2016, but claimed 1,267.5 crore from Tangedco without submitting documentary proof.