Displaying items by tag: Enforcement Directorate

India: The Indian Enforcement Directorate has conducted searches at locations associated with The India Cements. The directorate is seeking evidence of alleged violations of the Foreign Exchange Management Act (FEMA). Business Today Online News has reported that the current scope of suspected violations totals US$30 – 36m.

India Cements has yet to comment on the investigation.

India: The Enforcement Directorate (ED) has filed a prosecution complaint against Penna Cement for alleged irregularities related to the allocation of land and the granting of a mining lease. The agency has also named the deceased YSR Congress chief Y S Jaganmohan Reddy, V Vijaysai Reddy, Penna Group chairman Putta Pratap Reddy and Pioneer Holdings in the case, according to the Hans India newspaper. The complaint accuses the former Andhra Pradesh state government, run by Reddy, of allocating 231 acres in Yadiki mandal of Anantapur district to Penna Cements for setting up a cement plant and officials for allowing the allocation in violation of land acquisition rules.

The ED’s complaint also says that the government at the time refused mining leases to UltraTech Cement, granted a prospecting lease to Penna Cement and was complicit in other irregularities. In return for these actions the ED alleges that Penna Group invested US$10.6m in companies owned by Reddy, in violation of money laundering regulations. Previously, the Central Bureau of Investigation (CBI) filed charges against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009.