CASE OF CAUSING LOSS TO GOVT EXCHEQUER
Face2News/Indore
Special Magistrate for CBI cases, Indore has sentenced Jacob Mathew, then Director of M/s Sterling Auto Pvt. Ltd., Pithampur, Dhar, (MP); Pankaj Shanti Lal Shah, Proprietor of M/s. Eco Trade Overseas, Jogeshwari, Mumbai & accused Rakesh Garg, Authorized Signatory of M/s Sterling Auto Pvt. Ltd., Dhar, (MP) to 02 years’ Rigorous Imprisonment (RI) with combined fine of Rs. 52,500/- in a case related to causing loss to Govt of India.
The Central Bureau of Investigation (CBI) had registered a case on 24.10.2004 against accused including aforesaid accused on the allegations that said accused cheated the Govt. of India during the year 2003 on the basis of false/ forged documents in the matter of export of readymade garments from imported yarns defrauding government exchequer by claiming duty benefit available to Export Oriented Unit (EOU).
It was further alleged that M/s Sterling Auto Pvt. Ltd. fraudulently obtained license of private bonded warehouse from Asst. Commissioner, Central Excise Division, Pithampur, Distt. Dhar and executed a B-17 Bond dt. 25.2.2003 for amount of Rs.2 crores on the basis of fake / forged documents with a surety furnished by a Indore based firm. It was also alleged that M/s Sterling Auto Pvt. Ltd. imported 887 bales of 100 % polyester dyed fabric through three consignments during 2003 and the entire quantity was shown imported on different dates including 192 boxes of polyester partially oriented yarn shown imported on 28.7.2003. It was sourced from a Surat based firm.
(SUBHEAD)The garments were reportedly exported through M/s Ecotrade Overseas, purportedly located at Jogeshwari (E), Mumbai which was found to be fictitious. The address shown as the premises of Pankaj Shah at Bhayender (E), Distt. Thane (Maharashtra) was also fictitious. It was further alleged that M/s Ecotrade Overseas, was a non-existent firm on the address as shown in the Import-Export Code (IEC) of M/s Ecotrade Overseas issued by the office of the Directorate General of Foreign Trade (DGFT), Govt. of India, under the Ministry of Commerce.
CBI investigation revealed that all the addresses furnished by accused Pankaj Shanti Lal Shah were fictitious. Further, Directors of M/s Sterling Auto Pvt. Ltd., Pithampur, Dhar, MP used forged documents / bond to complete the formalities to operate its factory as 100% Export Oriented Unit (EOU) with a mala fide intent to defraud the government exchequer by getting duty benefit without discharging export obligations. All the duty-free material procured by accused company was manipulated by selling it in open market and caused wrongful loss of Rs. 1.56 Crore to the Govt of India and corresponding wrongful gain to the accused persons/company.
After completion of investigation, CBI filed charge sheet on 28.04.2006 against accused including those who were convicted by the Court. The Court, after trial, held all three accused guilty and sentenced them accordingly.
