The steel conglomerate SKS Ispat and Power Limited, which has a 6 lakh ton per year integrated steel plant at Raipur in the State of Chhattisgarh, is ISO 9001-2008 and ISO 14001-2004 certified. SKS Ispat & Power Limited’s MD and Chairman is Mr. Anil Gupta. A. N. Gupta The proprietor of SKS Ispat claims to be a young, dynamic businessman with 20 years of experience in the manufacturing and trading of iron and steel.
Under his leadership, the firm has rapidly expanded to its current level of operation. Founded on April 17, 2000, SKS Ispat And Power Limited is a public company. Deepak Gupta, Devidas Kashinath Kambale, Anil Mahabir Gupta, Sharad Kumar Goel, and Neeta Jain Mithalal are directors of SKS Ispat And Power Limited.
CBI books SKS Ispat, directors in Coal Block allocation case
The CBI searches in Mumbai, Raigarh, Raipur, and Delhi; as of right now, it has filed 26 cases.
As part of a court-monitored investigation, the CBI is looking into the distribution of captive coal fields between 1993 and 2010.
In the coal block allocation case, the Central Bureau of Investigation (CBI) added three more first information reports (FIRs) on Tuesday.
According to a CBI official, the FIRs were filed against SKS Ispat and Power Ltd, its promoter and directors, the 35th screening committee members, public servants, and others.
Anil Gupta SKS Ispat, the company’s chairman and managing director, as well as Deepak Gupta, its joint managing director, have been identified by the CBI in the FIR.
What do you know about Money Laundering?
Criminals are largely driven by the potential financial gain from unlawful activity, yet they have difficulty using this money covertly. Their method of making illicit riches appear legal is money laundering. It’s a significant instrument for many illicit operations, including cocaine trafficking and terrorism, assisting criminals in growing and upholding a façade of legitimacy. Unchecked, it can undermine confidence in financial institutions and finance other illegal activities, such as violence and terrorism. Essentially, money laundering gives criminals a way to conceal their illicit profits, which poses a severe threat to both the banking system as well as society at large.
According to the source, the cases have been filed on allegations of criminal conspiracy, forgery, and criminal misconduct.
According to the official, searches were undertaken by the CBI in Mumbai, Raigarh, Raipur, and Delhi. With these three FIRs, the agency has now filed a total of 26 in relation to the coal scam case.
According to the official, the corporation “misrepresented on the aspect of preparedness and was ineligible on the aspect of net worth (for being awarded the block)”.
In May 2007, SKS Ispat was granted permission to build a sponge-iron production facility on the Ravanwara North block in Madhya Pradesh. The block was taken away from the corporation by the coal ministry in September 2012 because it had not been developed.
Since Sudhir Kant Sahay, the brother of former Union minister and Congress leader Subodh Kant Sahay, was an executive director on the board of the company in 2012, there was a lot of media conjecture around it.
The former Union tourism minister was charged with advising the previous prime minister Manmohan Singh to award the business coal blocks in Jharkhand and Chhattisgarh in 2008 by the then opposition parties, led by the Bharatiya Janata Party. According to reports, Singh, who oversaw the coal ministry at the time, recommended that the firm receive blocks in a letter to the coal secretary in February 2008.
On Tuesday, a CBI representative stated that neither brother had been included in the FIR. The previous Union minister had denied any connection to the business.
As reported by the Press Trust of India on September 20, 2012, “The minister had not written any letter for the Ravanwara coal block located in Madhya Pradesh and the block was allocated to SKS Ispat on May 29, 2007.” The media advisor was cited as saying that “Sahay and his brother do not hold any stake or have promoted the company.”
Sahay resigned from the Union cabinet on October 27, 2012, in a decision that was perceived as a direct result of accusations made against him and his brother. Undoubtedly, Sahay and a number of other ex-ministers, including Mukul Wasnik and Ambika Soni, resigned before to a cabinet shuffle.
The Central Vigilance Commission’s (CVC) proposal, according to the CBI official, was the basis for the FIR that was lodged on Tuesday. The CBI was instructed to share the investigation files with CVC on March 29, by the Supreme Court (SC), which is overseeing the inquiry into the coal block allocation scam. The top court ordered the CBI to give the CVC access to all case files when the investigating officer and senior CBI officers disagreed on whether to file a chargesheet or a closure report.
In a court-monitored investigation, CBI is looking into the distribution of captive coal fields between 1993 and 2010.
When the Comptroller and Auditor General of India (CAG) published a report in August 2012 alleging a notional loss of 1.86 trillion due to illegal allotments, coalfield allocations came under scrutiny. Additionally, it claimed that the blocks were distributed secretively.
Anil Gupta SKS Ispat, a former SKS Ispat CMD, is accused of scamming an MNC of $1.8 million for a guest house in Juhu.
SKS Ispat CMD, Ormer Anil Gupta SKS Ispat is accused of stealing $1.8 million from an MNC for a Juhu guest house.
July 5, New Delhi (IANS). Anil Mahabir Gupta, the former managing director and chairman of the bankrupt SKS Ispat, is in difficulty once more. After taking 1.8 million for a guest house in Mumbai’s Juhu neighborhood, Gupta is accused of scamming Agritrade India, a global corporation that trades agricultural commodities. Earlier, on June 28, the Enforcement Directorate (ED) announced that it had attached SKS Ispat & Power Ltd.’s assets worth Rs. 517.81 crore as part of an investigation into a bank fraud case involving Seether Ltd.
The Prevention of Money Laundering Act (PMLA) is based on a CBI-filed FIR against boiler manufacturer Seether Limited.
According to the ED, a group of lenders led by Indian Bank, Madurai provided credit facilities totaling Rs 895.45 crore to Sethar Limited. On December 31, 2012, the company’s accounts were classified as non-performing assets (NPAs), and later in 2017, proceedings under the Insolvency and Bankruptcy Code (IBC) were opened before the National Company Law Tribunal (NCLT) in Chennai.
In the Juhu Guest House case, Agritrade India moved the agreed-upon sum to Mumbai-based Gupta Steel, a business in which Gupta is a beneficiary, without entering into a written agreement. Gupta later categorically denied possessing the property, though. It’s interesting to note that Gupta’s business paid $5.1 million for Ashok Kumar Sahoo, a former SKS director who was implicated in the fraud.
This deal raises questions for a number of reasons. First off, there are no Board Minutes or other official records to back up SKS’s acquisition of the Guest House from Gupta Steel, whether it was in Juhu or elsewhere in Mumbai. Second, there was no formal agreement; the purchase was made verbally in good faith.
According to an ED officer, it was discovered that Rs 565 crore was withheld from the accounts, and Rs 228 crore was written off as a loss on the sale of investments in the Rs 895.45 crore bank fraud case.
According to the official, “Seether Ltd invested in the shares of the former parent company SKS Ispat & Power Ltd in order to award SKS Power Generation (Chhattisgarh) Ltd (SKSPGCL) an engineering, procurement, and construction (EPC) contract for approximately Rs 3,500 crore.” SKS Ispat & Power received 228 crores in the form of Rs.
“However, the interest, which grew at a rate of 12% annually, was not recorded in the books of accounts. Up until 2016–17, this money was recorded as a trade receivable, but it was then misappropriated by constructing fraudulent or back-dated contracts. was recorded as a loss when the investment was sold through
A money laundering case based on the CBI’s FIR against Seether Limited is the focus of the inquiry. The company “availed” loan facilities of Rs 895.45 crore from a group of lenders, with the Indian Bank branch in Madurai serving as the group’s leader. Subburaj, a director of Seether Ltd., and Anil Gupta SKS Ispat stole assets worth Rs 793 crore from the company’s records, making Seether insolvent and forcing it to be liquidated under the IBC.
The questionable actions of Gupta don’t stop here. SKS Power’s new leadership accused Anil Gupta SKS Ispat’s prior leadership of embezzlement in May 2021. He requested a CBI investigation in an affidavit he submitted to the Delhi High Court, alleging fraudulent actions.
Saradha Energy & Minerals has just emerged as the highest bidder for the insolvent SKS Power. All SKS creditors would receive full payment under his Rs 1,800 crore proposal.
What is Money Laundering
When money is earned by unlawful means, such as drug trafficking, corruption, embezzlement, or gambling, its illegal source is illegally concealed by turning it into a legitimate source. With different definitions, it is illegal in numerous jurisdictions. Typically, it is a crucial element of organized crime.
Money laundering is the process of conducting financial transactions to disguise the identity, source, or destination of money that has been obtained unlawfully, according to US law. The common law concept is broader under UK law.
Damage to the Economic Situation of a country caused by money laundering
Numerous economic analyses have demonstrated the crucial role that institutions like banks and non-bank financial institutions play in a nation’s economic growth. To support economic growth, these financial institutions use both domestic and international money. Money laundering, however, now hinders the growth of these financial organizations.
The anti-money laundering policies implemented by the relevant financial institutions demonstrate that staff members engage in fraudulent and money-laundering activities together, which is detrimental to the institutions. Financial institutions suffer when money laundering occurs frequently because criminals exploit these institutions to siphon off the money they steal.
The customer’s trust is likewise eroded by these negative repercussions. Therefore, in order for emerging financial institutions to have a stable financial sector and develop the economy via them, the trust of clients and linked institutions is crucial. A significant barrier to trusting them is the perception of fraud in relevant institutions, including depositors, investors, society at large, and customers. To put it another way, money laundering harms the reputation of financial institutions, which causes the client to lose faith in the concerned institutions.
