CBI REGISTERS TWO CASES AGAINST CERTAIN OFFICIALS OF RAILWAYS, CENTRAL EXCISE AND TWO PRIVATE COMPANIES FOR ALLEGEDLY CAUSING HUGE LOSS TO THE RAILWAYS
The Central Bureau of Investigation has registered two cases against certain officials of the Ministry of Railways; unknown officials of Central Excise of Haldia Commissionerate (West Bengal) and two private companies – one based at Jhargram(West Bengal) and other based at Kharagpur(West Bengal) along with the Directors of the said companies.
It was alleged that both the companies were engaged in production of Iron products (Sponge Iron, Pig Iron, etc.) and in this process procured Iron ore from mines of Odisha. As per the policy of Railways, concession was allowed to the Companies who were consuming the Iron ore for domestic consumption. Under such declaration both the private Companies allegedly procured huge amount of Iron ore whereas the Excise Return Forms submitted by these Companies to the Excise Department showed production of much lesser quantity of Iron products. The companies also in connivance with unknown officials of Central Excise allegedly submitted false Excise Return Forms to the Railways, thereby getting larger amount of Rakes from the Railways for transportation of Iron ores. The said private companies with such false pretext of domestic consumption, exported/sold the Iron ore. As a result of this, the Railways incurred loss of about thousand crores by the alleged false declaration given by the companies towards freight.
Simultaneous searches in 32 places at the premises of officials of Railways and Offices of the Companies & the residences of its Directors were conducted. During the searches, incriminating documents; Cash of approx. Rs.8.94 lakh; KVP, NSC, TDR, FDR etc worth Rs.60 lakh; Hard Disks, Laptops and other miscellaneous files pertaining to the cases were recovered.
Investigation of the case is in progress.
CBI Press Release
New Delhi , 31.01.2012