PANJIM, GOA – In a significant escalation of the long-standing probe into Goa’s illegal iron ore mining sector, the Enforcement Directorate (ED) has provisionally attached assets worth ₹1,023.85 crore under the Prevention of Money Laundering Act (PMLA). The move, initiated on June 19, marks a major milestone in the federal agency’s crackdown on the Salgaocar Group and the AVS Group.
The attachment order spans international borders, encompassing high-value real estate and financial holdings both within India and in Singapore.
The Anatomy of the Attachment
The ED’s order covers a diverse portfolio of assets linked to the estate of the late industrialist Anil Salgaocar and several associated entities, including Salgaocar Mining Industries, Shantilal Khushaldas & Bros, and Suvarnarekha Port, among others.
Breakdown of the Attached Portfolio:
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Indian Real Estate: 99 immovable properties valued at ₹459.10 crore.
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International Real Estate: 31 immovable properties in Singapore valued at ₹471.32 crore.
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Financial Holdings: Equity shares in various Indian companies totalling ₹93.42 crore.
Allegations: A Decade-Long Trail of Illicit Gains
The investigation stems from an FIR registered by the Goa Police CID, following Supreme Court rulings in 2014 and 2018. The apex court had declared all mining operations conducted in Goa after November 22, 2007, to be illegal, pending the issuance of fresh mining leases.
According to the ED, the AVS Group exploited ten mining leases between 2007 and 2012, extracting and exporting iron ore without lawful authority. The agency alleges that the operation generated a staggering ₹5,237.84 crore in total “proceeds of crime.”
The Shell Company Network
Investigators have detailed a sophisticated money laundering web designed to siphon profits offshore. The ED alleges that:
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Undervalued Exports: Illegally extracted iron ore was sold at “significantly low prices” to shell companies and Special Purpose Vehicles (SPVs) established in the British Virgin Islands (BVI).
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Offshore Profit Skimming: These BVI-based entities acted as paper intermediaries, reselling the ore to buyers in China at market rates, thereby trapping an additional ₹2,744.89 crore in offshore trading profits.
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Layering and Repatriation: The accumulated funds were allegedly routed through the BVI and Singapore to acquire luxury assets abroad. A portion of these funds was subsequently funnelled back into India disguised as legitimate share capital.
Legal Implications
This provisional attachment is a critical step under the PMLA, intended to prevent the dissipation of assets while the prosecution proceeds. The entities named—including the estate of the late Anil Salgaocar, represented by administratrix Lakshmi Anil Salgaocar—now face the burden of defending the legitimacy of these holdings.
As the ED continues its trail of the diverted funds, the case serves as a stark reminder of the massive regulatory and environmental challenges that once defined the Goa mining landscape. Further developments are expected as the agency files its report with the adjudicating authority to confirm the attachment.
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