ED slaps FOREX violation notice against mine owner

PTI, PANAJI | 03 June 2015 21:01 IST

Enforcement Directorate (ED) has slapped a Rs 136 crore show cause notice on a mining firm for alleged violation of FOREX laws in connection with its probe in the illegal exploration of iron ore in Goa.

"On the basis of Justice (M B) Shah Commission report on illegal mining in the state of Goa, ED had started investigating the under-invoicing done by exporters of iron ore from Goa during 2006-2012 under the provisions of Foreign Exchange Management Act, 1999. 

"Ms Magnum Minerals Pvt Ltd was one such mining company and exporter. Investigation conducted revealed that the company had transferred total of Rs 136.93 crore by way of under invoicing of exports and in the guise of investment in the overseas subsidiaries," a statement issued by the agency said. 

The notice, the statement said, has been issued against three directors of the said firm and according to law they will have to submit their responses to the Adjudicating Authority of the FEMA, which in this case is the Special Director of the agency based in Mumbai. 

Once the said violations are confirmed, the accused can be slapped three times the value of the show cause notice as penalty. 

This is the first notice issued by the agency against a mining firm in Goa in this illegal mining probe case after it registered a FEMA case in August last year. 

The ED, along with probing the forex violation charges, is also investigating the said firm and others for money laundering charges. 

It had, in June last year, registered a case under criminal provisions of the Prevention of Money Laundering Act (PMLA) against over 80 companies mining in the state. 

The M B Shah Commission, which had probed the sector earlier, had pegged the alleged irregularities at Rs 35,000 crore in Goa. 

The Commission had submitted its report in this case in 2012, two years after it was constituted in 2010 after which the Goa police and ED took over.

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When BJP will recover 35 Thousand Corers from Congress? These amount should invest in making roads, etc. and to give 24x7 water and electricity to each Goan houses.

- Mathew Dias, Goa | 04 th June 2015 12:52