Other States

CBI books Kolkata-based firm, ex-PEC Limited CMD and others in cheating case

The Central Bureau of Investigation has booked Kolkata-based R. Pyarelall Import and Export Limited and its top functionaries, besides a former Chairman-cum-Managing Director (CMD) of PEC Limited and others, for allegedly causing a loss of over  ₹290 crore to the public sector undertaking.

Among those named in the FIR are the private company's chairman, Ramesh Kumar Agarwal, its director Siddartha Agarwal, Baid Shipping Agency, Praveen Baid, Pradeep Baid, former PEC Limited CMD A.K. Mirchandani, its former Chief Managers Kavinder Sharma and S.C. Rishi, General Manager (Marketing) Ravi Kumar and Senior Manager (F&A) Vishwanath A. Chanekar.

PEC Limited, which functions under the Ministry of Commerce and Industry, had earlier lodged a complaint with the CBI stating that it was in constant business dealings with R. Pyarelall Import and Export Limited since 2006 and had established 29 foreign letters of credit worth $155 million for import of pulses and sugar.

In 2010-11, the accused company functionaries approached PEC Limited for import financing by issuing letters of credit for the import of pulses. Based on past references and by allegedly making false representations, it induced PEC Limited into issuing four letters of credit for $36.53 million.

In terms of contract agreement, the accused were to repay the amount and was to hold the material purchased out of the funds as pledge in trust for PEC Limited. Baid Shipping Agency was appointed as customs handling and forwarding agent for the safekeep and monitoring of the pledged goods.

The accused issued cheques covering almost 92% of the contract value. They entered into high seas sale agreement with PEC Limited, got the title of the imported material transferred in its name against the promise of paying the consideration amount plus 1.25% trading margin. The material was kept as security till the payment was made.

However, in the case of three letters of credit, it is alleged that the pledged material were removed without the written consent of PEC Limited, causing a loss of ₹233.97 crore with interest till November 2019. In respect of the fourth letter of credit also, a part of the stored material was removed, which caused a loss of  ₹.57.65 crore to PEC Limited, as alleged.

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Printable version | Aug 9, 2020 10:06:41 PM | https://www.thehindu.com/news/national/other-states/cbi-books-kolkata-based-firm-ex-pec-limited-cmd-and-others-in-cheating-case/article32006576.ece

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