JSW Steel Limited Etc. Vs Deputy Director (Supreme Court of India)
SC Refuses to Quash ED Case Against JSW Steel – Says PMLA Tribunal Must First Decide on ‘Proceeds of Crime’- JSW Steel Not Named in ECIR – SC Refuses to Quash ED Case, Says Let PMLA Tribunal Decide
Background & Facts
JSW Steel Ltd. entered into a 2009 supply agreement with Obulapuram Mining Company (OMC) for 1.5 million MT of iron ore. After partial supply, OMC failed to deliver the balance. Arbitration followed, & by award dated 09.05.2014, OMC was directed to refund amounts to JSW.
Meanwhile, CBI registered RC 18(A)/2011 against OMC & its partners (G. Janardhan Reddy & G. Lakshmi Aruna) for illegal mining & export of ore. Though JSW was initially named, CBI’s supplementary charge sheet (06.09.2013) dropped charges against it.
The Enforcement Directorate (ED) later registered ECIR/09/BZ/2012 under PMLA, attaching JSW’s bank accounts for about ₹33.80 crore, claiming these were “proceeds of crime” arising from payments due to OMC. ED issued Provisional Attachment Orders (PAO) Nos. 08/2015 & 11/2016, later confirmed by the Adjudicating Authority.
JSW challenged these attachments before the Karnataka High Court, but the petitions were dismissed. The company also filed appeals before the PMLA Appellate Tribunal, which remain pending.
