Bharat Earth Movers Limited (BEML) has tanked 13% to Rs 445 on reports that the company’s account with the State Bank of India’s Overseas Branch has been frozen by the investigation authority.
“Malleswaram police, who are investigating a cheating case filed against the company, had sent a letter to the assistant general manager of the State Bank of India’s Overseas Branch on May 4, requesting him to freeze the account belonging to the BEML Defence Business Group,” the report suggests.
Vivek Hebbar, managing director of Dreams Logistic Company India Private Ltd, in his complaint, had alleged that the BEML chairman and managing director, VRS Natarajan along with two others, had cheated his company to the tunes of Rs 35 crore.
The stock has opened at Rs 505 hit a high of Rs 512 on the National Stock Exchange. As many as a combined 612,128 shares have changed hands on the counter in noon trades, against an average sub 50,000 shares that were traded daily in pas two weeks on both the exchanges.