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ED notice to Goa iron ore export firm for FEMA violation

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IANS Panaji
Last Updated : Jun 02 2015 | 8:57 PM IST

The Enforcement Directorate, which is probing the Rs.35,000 crore illegal iron ore mining scam in Goa, has issued show cause notice to Goa-based iron ore export firm Magnum Minerals for under-invoicing exports and parking abroad the proceeds of iron ore sale to the tune of Rs.136.93 crore.

An agency spokesperson said the notice was issued by the ED's special director under the Foreign Exchange Management Act (FEMA) and was the first show cause notice issued in the course of its investigation into the mining scam first exposed by the Justice M.B. Shah Commission in 2012.

"On the basis of the Justice Shah Commission report on illegal mining in Goa, Panaji zonal office has started investigating the under-invoicing done by exporters of iron ore from Goa during the period 2006 to 2012," the spokesperson said.

"Investigation conducted by this office (ED) 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," the spokesperson said.

The Shah commission report on the mammoth Rs.35,000 crore illegal mining scam exposed an alleged nexus between politicians, bureaucrats and Goa's mining companies.

The ED was subsequently tasked with investigating the financial irregularities related to the mining scam.

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The agency has already questioned Radha Timblo, proprietor of one of the biggest mining companies in Goa indicted in the scam, after her name featured in the list of Swiss bank account holders released by the union finance ministry last year.

Timblo has denied parking black money abroad.

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First Published: Jun 02 2015 | 8:48 PM IST

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