THREE FORMER OFFICIALS OF MSTC REMANDED TO CBI CUSTODY IN AN ONGOING INVESTIGATION RELATING TO ALLEGED FRAUD OF RS.464 CRORE(APPROX) TO MSTC.

Press Release
New Delhi , 03.05.2012

            The Central Bureau of Investigation has arrested the then Chairman & Managing Director; Chief General Manager and Insurance Consultant, all of MSTC, Kolkata in an on-going investigation of a case of forgery & fraud resulting in an estimated loss of Rs.464 crore(approx.) to MSTC.

 

            The arrested accused were produced before CBI Court, Mumbai and were remanded to Police Custody till 10.05.2012.

 

            A case was registered against the then Chairman of Pen Urban Co-operative Bank Ltd; unknown officers of MSTC and other private persons for causing loss of Rs.464 crore(approx) to MSTC.

 

            During the investigation, it was revealed that from the year 2006 onwards, the accused persons entered into criminal conspiracy with the then CMD; the then CGM; DGM, all of MSTC, Kolkata; Insurance Consultant, (fraudulently appointed by MSTC) and Directors of 6 Exporters private companies. In pursuance of the criminal conspiracy, the six exporters submitted forged & fake documents. The three MSTC officials abused their official positions as public servants and allegedly accepted the said forged & fake documents and released 80% of the export value to them. However, it was also alleged that the accused officials of MSTC were fully aware that the said documents submitted by six exporters were forged & fake. A loss to the tune of Rs.464 crores(approx) was caused to MSTC.

 

            CBI had earlier arrested 6 accused persons i.e. the then Chairmen of Pen Urban Co. Op. Bank; his wife; the then Advisor of Pen Urban Co. Op. Bank; the then Consultant; Associate & Consignee at UAE and another Consultant based at New Delhi, in connection with this probe.

 

            Further investigation is continuing.

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