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| Steel Min seeks CBI probe into Rs 600-cr gold deal |
| Press Trust of India / New Delhi Aug 25, 2009, 16:47 IST |
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Suspecting a "scam", the Steel Ministry has sought a CBI probe into default of payment for exports of gold worth Rs 600 crore to Dubai last year by the state-owned trading firm MSTC.
"Steel ministry has recommended a CBI inquiry into the MSTC transaction. The ministry wants every minute detail of the suspected scam out," a senior official said. MSTC exported gold worth about Rs 600 crore in fiscal 2008-09.
"The ministry also wants CBI to ascertain role of certain top company officials in the transactions," he said.
Chairman and Managing Director of MSTC S K Tripathi could not be reached.
The exports carried were under Export Credit Guarantee Corporation of India (ECGC) cover--which provides a range of credit risk insurance covers to exporters against loss in shipments of goods and services, the official said.
However, in case a scam or fraud is established, ECGC would not pay the damages.
Also, the Steel Ministry would be sending a fact-finding team to Dubai soon to see if some part of the amount could be recovered. Some money has already been received.
The buyers were given 180-day credit period but defaulted, he said.
MSTC, which is the channelising agency of such exports under the steel ministry, has a turnover of about Rs 300 crore, the official said.
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