ED charges Som Phytopharma with money laundering, pollution violations

Hyderabad: Enforcement Directorate (ED) Hyderabad has filed a Prosecution Complaint (PC) before the Special Court (PMLA), Hyderabad against M/s Som Phytopharma (India) Ltd. and its Managing Director, Devanur Ramaswamy Iyengar Venkatesh under the provisions of Prevention of Money Laundering Act (PMLA), 2002. The court took cognizance of the PC on Thrusday.

Premier anti-money laundering agency probe against M/s. Som Phytopharma (India) Ltd. based on a complaint filed by Telangana State Pollution Control Board (TSPCB) before Court of Judicial First Class Magistrate, Sangareddy. As per the said complaint, M/s SOM Phytopharma (India) Ltd. violated the mandatory guidelines of TSPCB laid down for disposal of liquid effluents generated during production of Bio-fertilizers/Bio-pesticides and thereby committed offences under the Water (Prevention and Control of Pollution) Act, 1988 and Air (Prevention and Control of Pollution) Act, 1987.

Pollution violations lead to ED action

Anti Money laundering agency’s investigation revealed that as per the TSPCB guidelines, M/s Som Phytopharma (India) Ltd. was supposed to establish a pre-treatment plant for treating the effluents before sending them to Common Effluent Treatment Plant. However, the company failed to do so and was carrying on its business without the requisite pretreatment facilities thereby endangering nature and causing water and air pollution which resulting in passing of a closure order by the TSPCB against the company. Investigation revealed that by committing the said scheduled offences, the company derived Proceeds of Crime (POC) which was later used by it in its business activities.

Further agency probe revealed that earlier provisionally attached assets of M/s Som Phytopharma (India) Ltd. during investigation and the attachment was subsequently confirmed by the Ld. Adjudicating Authority (PMLA).