The Enforcement Directorate (ED) of India has filed a Prosecution Complaint against Ahmed A. R. Buhari and 6 others in a money laundering case of overvaluation of coal prices. Specifically, Buhari’s scheme led Public Sector Undertakings to pay higher price for lower quality of coal.
ED’s investigation revealed that Buhari has several companies in Chennai, Dubai, Mauritius and British Virgin Islands. Buhari and co-conspirators supplied coal of lower calorific value to PSUs which had chosen higher quality coal based on legal tenders. The lower quality coal was supplied by CEPL with an overvalued invoice supported by a fraudulent Certificate of Sampling and Analysis (COSA) that concealed the true quality of the coal. In this manner, Buhari generated illicit proceeds of ₹5.6448 billion ($73.35m). Buhari used his various companies to divert the proceeds.
Previously, ED had provisionally attached land, plant, machinery and other assets worth $73.35m of one of Buhari’s companies for restitution.
Source: Enforcement Directorate, India