CBI arrests former MSTC Chairman in Rs 464 crore fraud case

They have been sent to police remand till May 10. They had allegedly colluded with an insurance consultant S K Singh in 2006 to cause the loss of Rs 464 crore to the mini-ratna company.

“In pursuance of the criminal conspiracy, the six exporters submitted forged and fake documents. The three MSTC officials abused their official positions as public servants and allegedly accepted the said forged and fake documents and released 80 per cent of the export value to them,” CBI spokesperson said in New Delhi.

As part of the alleged conspiracy, directors of six export houses — Ushma Jewellery and Packaging Export Pvt. Ltd., Space Mercantile Company Pvt. Ltd., K A Malle Pharmaceutical Company Ltd, Joshi Bullion and Gems Jewellery Pvt. Ltd., Bond Gems Pvt. Ltd. and Indo Bonito Multinational Pvt Ltd. –submitted forged and fake documents to get released 80 per cent of the export value to them, agency sources said.

“The accused officials of MSTC allegedly, knowing that documents were fake, accepted them as part of a conspiracy and released the export value to them causing a loss of Rs 464 crore to company”, the spokesperson said.

CBI had earlier arrested six accused Shishir Dharkar, the then Chairmen of Pen Urban Co-Operative Bank, his wife Gul Raihana Omer, Prem Kumar Sharma, the then Advisor of the Bank, consultant Rahis Ahmed, Jayesh Desai, Associate and Consignee at UAE and R Mani, Consultant based at New Delhi.