Case Law Details
Prakash Industries Ltd. Vs Directorate of Enforecement (Delhi High Court)
Held that the impugned proceedings rest on the second chargesheet which bids us to restrict scrutiny upto 04 September 2003 and there is no allegation that any illegal monetary gains were derived or obtained as on 04 September 2003. Provisional order of attachment held illegal.
Facts-
The petitioners, Prakash Industries Ltd. (PIL), is stated to have applied for the grant of a mining lease on 25 May 1992. The Ministry of Coal is stated to have apprised PIL of its decision to permit it to explore the Hasdeo-Arand coal block for captive development. Accordingly, PIL is stated to have apprised the Ministry of it having undertaken preparatory steps for exploration of the Chotia block falling within the Hasdeo-Arand and Panchvahini coalfields. The application for allocation of the Chotia coal block remained pending for consideration till it was allocated to PIL in 2003.
In terms of first FIR, PIL was alleged to have diverted 2,27,000 tons of coal in the open market and thus earning illegal profits to Rs. 22.7 Crores.
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