The Central Bureau of Investigation (CBI) has booked A.K. Mirchandani, the then chairman-cum-managing director (CMD) of PEC Limited, its seven other former officials, and a private company and its directors, for allegedly causing a loss of over ₹56.89 crore to the exchequer.
This is the third first information report (FIR) registered by the CBI against Mr. Mirchandani since 2018.
In the latest case, among those named as accused are the then PEC Limited chief general manager Rajiv Chaturvedi; general manager D.K. Guptap; chief marketing managers P.K. Bhatia, S.C. Rishi and G.Y. Dupate; manager Rohit Verma; and deputy manager Saurabh Rai.
Odisha-based Maa Tarini Industries Limited and its directors, Piyush Sengar, Bhupendra Das and Mayank Dhar, have also been arraigned.
The company had approached PEC Limited, a public sector undertaking under the Commerce Ministry, to get credit facilities for the domestic procurement of iron ore and coal. Initially, it was provided financial assistance in pursuance of an agreement in October 2012, for the purchase of iron ore worth ₹8 crore.
While the facilities were further extended, the company also got financial assistance to the tune of ₹16 crore through its sister firm, Tathagat Exports Private Limited.
During an internal inquiry, PEC Limited found that the accused company had pledged to it the iron ore stocks, which had also been hypothecated with the State Bank of India. Also, it had handed over 11 cheques to PEC Limited for ₹19 crore, which returned dishonoured.
It is alleged that Mr. Mirchandani was responsible for giving all the approvals, while Mr. Chaturvedi was in charge of the entire transaction with the accused company.
In July 2020, the CBI had made another case against Mr. Mirchandani, Kolkata-based R. Pyarelall Import and Export Limited, Baid Shipping Agency and others for allegedly causing a loss of more than ₹290 crore. It is alleged that the private company, based on false representations, induced PEC Limited into issuing four letters of credit for $36.53 million.
The agency, in May 2018, instituted yet another case against Mr. Mirchandani, Mumbai-based Pisces Exim (I) Private Limited and others. The case pertained to 15 associateship agreements between PEC Limited and Pisces Exim, under which the private company was to export iron ore to a foreign buyer. The transaction was to be facilitated and financed by PEC Limited by way of interest-bearing advances.
