Update on disclosure with respect to quashing of complaint filed by Directorate of Enforcement.
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 3.8 pts less than Nifty Microcap 250 and 3.5 pts less than its Iron & Steel Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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The Special Judge (CBI) Court at Rouse Avenue, New Delhi, has declined to take cognizance of a money laundering complaint filed by the Directorate of Enforcement (ED) against Rathi Steel & Power Ltd, promoters Mr. Pradeep Rathi and Mr. Udit Rathi, and former official Mr. Kushal Kumar Agarwal. The ED's case related to alleged money laundering under PMLA in connection with the 2008 allocation of the Kesala North Coal Block in Chhattisgarh. The court found that the prosecution failed to establish that the coal block allocation letter or the Rs. 3.08 crore raised through preferential share issuance to non-promoters constituted 'proceeds of crime' under PMLA. The company has stated it does not foresee any impact on its financial operations or day-to-day activities. The complaint had been pending since August 2024, and this order effectively brings the PMLA prosecution stage to a close unless the ED appeals.
This is a positive legal outcome for the company and its promoters, removing a significant enforcement overhang related to the long-running coal block allocation matter. Shareholders may view it favorably, though the underlying 2016 CBI conviction in the predicate offence still stands and the ED may seek to challenge the order.