New Delhi: The Enforcement Directorate (ED) on Saturday attached immovable properties worth Rs 244.89 crore of Balasore Alloys Ltd in lieu of the proportionate share of Pramod Kumar Mittal and Global Steel Holding Ltd (GSHL) in the company, in connection with a case of defrauding the State Trading Corporation (STC).

An FIR registered by the Central Bureau of Investigation (CBI) on March 16 revealed that GSHL had sought financing facility from the STC.

On the basis of the FIR, the ED registered a case under Prevention of Money Laundering Act (PMLA) against Pramod Kumar Mittal, GSHL and STC officials on March 29.

Following preliminary investigations, 87,47,285 shares of Balasore Alloys Ltd having face value of Rs. 4.3 crore pertaining to Mittal and GSHL were frozen in May 2017.

According to an ED statement, STC had agreed to finance GSHL without checking financial health of the company and exposed itself to financial risk.

GSHL availed financing facility for purchase of raw material for their Philippine based steel plants on cash and carry basis. As per the agreement, raw material/goods had to be lifted only upon payments to STC whereas raw material was supplied despite payments not being made.

Despite the violation of RBI guidelines by GSHL and default in its payments amounting to approximately Rs 2,112 crore, the STC continued the transactions.

Investigations have revealed that Mittal and GSHL are holding 30.35 percent of the shareholding of Balasore Alloys Ltd through various Indian as well as foreign promoter and investment companies, and thus have proportionate share of 30.35 percent in the fixed assets of Balasore Alloys Ltd.

Accordingly, proportionate share of Mittal and GSHL in Balasore Alloys Ltd which includes building, plant and machinery of Balasore Alloys Ltd valued at approximately Rs 244.89 crore has been attached in lieu of the proceeds of crime.