GTN Engineering Case: ED Hyderabad Seizes Rs. 51.2L

ED Hyderabad attaches Rs. 51.2L from GTN Engineering in pollution case

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Neelima Eaty 5 Feb 2025 2:03 PM

News in short:

The Enforcement Directorate (ED) in Hyderabad has frozen Rs. 51.24 lakh from the bank account of GTN Engineering (India) Ltd. This action is part of an investigation into the company's violation of environmental laws, specifically regarding untreated industrial effluents. The Telangana State Pollution Control Board (TSPCB) filed a complaint alleging GTN Engineering's failure to comply with pollution control guidelines and operate its Effluent Treatment Plant (ETP), leading to water and air pollution. The ED investigation determined that the company saved Rs. 51.24 lakh by not properly treating the effluent, which was considered proceeds of crime. While the company eventually spent money to dispose of the waste, the environmental damage had already been done, potentially harming public health. The ED's investigation is ongoing.

Hyderabad: The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached an amount of Rs. 51.24 lakh in the bank account of GTN Engineering (India) Ltd. under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a case of environmental pollution.

The investigation was initiated after the Telangana State Pollution Control Board (TSPCB) filed a prosecution complaint against GTN Engineering (India) Ltd. (formerly known as Perfect Knitters Ltd.) for violating environmental laws.

The complaint, filed before the Additional Judicial First-Class Magistrate at Sangareddy, alleges the company committed offences under Sections 24 and 43 of the Water (Prevention and Control of Pollution) Act, 1974, and Section 19 of the Environment (Protection) Act, 1986.

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According to the TSPCB, the company failed to comply with mandatory pollution control guidelines and ignored repeated directions, leading to ongoing water and air pollution in surrounding areas.

The ED investigation revealed that GTN Engineering (India) Ltd. had neglected to properly operate its Effluent Treatment Plant (ETP), saving approximately Rs. 51.24 lakh in the process. This amount represents the cost the company avoided by failing to treat industrial effluents, which contributed to violations of pollution control regulations.

Although the company later spent around Rs. 23.83 lakh to dispose of liquid and solid effluents after the plant’s closure, significant environmental damage had already been caused. By failing to properly manage hazardous waste, GTN Engineering (India) Ltd. harmed public health and the environment, generating proceeds of crime amounting to Rs. 51.24 lakh, which were allegedly used in the company’s business operations.

As a result, the ED Hyderabad Zonal Office has attached the Rs. 51.24 lakh lying in the company’s bank accounts. The investigation is ongoing.

𝐄𝐃 𝐀𝐭𝐭𝐚𝐜𝐡𝐞𝐬 ₹𝟓𝟏.𝟐𝟒 𝐋𝐚𝐤𝐡 𝐨𝐟 𝐆𝐓𝐍 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠 𝐎𝐯𝐞𝐫 𝐏𝐨𝐥𝐥𝐮𝐭𝐢𝐨𝐧 𝐂𝐚𝐬𝐞

Hyderabad ED has provisionally attached ₹51.24 lakh from GTN Engineering (India) Ltd under PMLA in an environmental & water pollution case. The company allegedly… pic.twitter.com/RWFxjYDc5z

— Hyderabad Mail (@Hyderabad_Mail) February 5, 2025