Dalmia Cement Gets Partial Relief As PMLA Appellate Tribunal Cuts Proceeds To ₹92 Cr In ED Case Linked To YS Jagan Mohan Reddy

In a case linked to alleged quid pro quo investments involving former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy, the Appellate Tribunal under the Prevention of Money Laundering Act (PMLA) in Delhi has reduced the proceeds of crime attributed to Dalmia Cement (Bharat) Ltd from Rs. 793.34 crore to Rs. 92.52 crore while partly allowing the company's appeal against the attachment of properties.

A single-member coram of V. Anandarajan was hearing an appeal challenging an order dated September 22, 2025, passed by the PMLA Adjudicating Authority confirming the attachment of properties worth Rs 377.26 crore belonging to the company.

The attachment arose from a provisional attachment order issued by the Enforcement Directorate (ED) on March 31, 2025 in connection with a CBI case registered on August 17, 2011, alleging quid pro quo investments in companies associated with Reddy.

According to the ED, Dalmia Cement had invested about Rs 95 crore in Bharathi Cement Corporation Pvt Ltd, allegedly in return for benefits granted by the Andhra Pradesh government, including the grant of limestone mining leases in the Kadapa district. Based on the investigation, the ED initially quantified the proceeds of crime attributable to the company at Rs 793.34 crore.

During the proceedings, the ED revised the proceeds of crime to Rs 176.52 crore after deducting the cost of limestone extraction. The tribunal noted that the revised figure included ₹84 re arising from the sale of shares of Bharathi Cement Corporation Pvt Ltd to French company PARFICIM.

The tribunal held that the amount received from the share sale could not be treated as proceeds of crime in the hands of the appellant.

“Needless to say, this revised total of Rs. 176.52 is inclusive of Rs. 84 crore being the sale proceeds from share of M/s Bharathi Cements Corporation Pvt. Ltd. to M/s Parificim which I have already held not to constitute proceeds of crime in the hands of the appellant,” the tribunal observed.

After excluding the share sale component, the tribunal held that the proceeds of crime would stand reduced to ₹92.52 crore.

“That having been said, I also find merit in the contention of the appellant that the amount of proceeds of crime derived from the extraction of mineral would stand reduced to a total of Rs. 92.52 crore only as against 709.34 crore as quantified in the PAO. As a result, the total proceeds of crime would stand reduced to Rs. 92.52 crore only as against Rs. 793.34 crore as quantified in the PAO,” the order stated.

The tribunal held that, at this stage, sufficient material existed to treat the profits derived from mining activity as proceeds of crime, noting that a chargesheet had been filed in the scheduled offence and that the issue would be tested before the competent court.

The tribunal also considered the company's request for release of the attached properties, stating that the assets formed part of its operational business. Taking note of the ED's submission that the value of the alleged proceeds of the crime could be secured through alternative means, the tribunal permitted the substitution of the attached properties with adequate security such as a bank guarantee, subject to satisfaction of the authority.

The appeal was accordingly partly allowed.