cbi case against gold exporters

CBI REGISTERS A CASE AGAINST GOLD EXPORTERS, CHAIRMAN AND UNKNOWN OFFICIALS OF PEN COOPERATIVE URBAN BANK LTD. & UNKNOWN OFFICIALS OF MINERAL SCRAP TRADING CORPORATION (MSTC), FOR CHEATING MSTC TO THE TUNE OF RS.480 CRORES (APPROX.) 

            The Central Bureau of Investigation has registered a case against 17 accused including Gold Exporters and Chairman of Pen Cooperative Urban Bank Ltd., besides the unknown officials of Mineral Scrap Trading Corporation (MSTC), a Government of India Enterprise under Union Ministry of Steel, New Delhi and Pen Cooperative Urban Bank Ltd., who cheated the MSTC to the tune of Rs.480 crores (approx). MSTC having the corporate office at Kolkata is a trading corporation involved in Imports & Exports and is a nominated Agency for Gold Exports under F.T.P (Foreign Trade Policy). 

                It is alleged that in the year 2008-09, accused exporters fraudulently exported Gold Jewellery worth Rs.600 crores to various buyers in UAE.  In lieu of this export, MSTC gave advances worth 80% of the value of the invoice viz. Rs.480 crores to the aforesaid Associate Suppliers through Real Time Gross Settlement (RTGS) in their nominated bank accounts.  However, as stipulated, the proceeds of Export, which were to be received within 170 days from the date of export have not been received till date.

                The accused conspired to cheat MSTC and allegedly exported gold to their own companies in UAE.  This gold was supposed to be exported to  Export Credit Guarantee Corporation (ECGC) authorized importers in UAE against the Letter of Credit (LC).  However, in order to cheat MSTC, the exporters in connivance with the importers, sold the gold in UAE open market fraudulently with a commission of 2% and brought back the proceeds of sale  to India through Hawala.

                The export proceeds were supposed to be routed through MSTC to the exporters. But as the money was allegedly brought in through Hawala,   MSTC was unable to recover Rs.480 crores, which led to the loss of Rs.480 crores to the Govt. of India. 

                Searches were conducted at 15 places in Mumbai, Ahmedabad and Kolkata.  Incriminating documents recovered during searches are being scrutinized for further investigation.