CBI files two cases in Rs 1,000-cr iron ore scam

The Central Bureau of Investigation (CBI) has registered two cases against unknown officials and private companies for allegedly causing a loss of over Rs 1,000 crore to the government exchequer by making false declarations in transportation of iron ore and its end use.

The cases were registered against unknown officials of Ministry of Railways and Central Excise of Haldia Commissionerate and two private companies -- M/s Rashmi Cement Pvt Ltd, Jhargram and M/s Rashmi Metallic Pvt Ltd, Kharagpur -- based in West Bengal, CBI officials said.

"It was alleged that both the companies were engaged in production of iron products [sponge, iron, pig iron, etc] and in this process procured iron ore from mines of Odisha.

The companies got railways concessions on the ground that the iron ore will be used for domestic consumption.

"Under such declaration both the private companies allegedly procured huge amount of iron ore whereas the excise return forms submitted by these companies to the excise department showed production of much lesser quantity of iron products," CBI spokesperson said in a statement here today.

By resorting to such tactics, the companies got larger amount of rakes from the Railways for transportation of iron ore.

"The said private companies with such false pretext of domestic consumption, exported/sold the iron ore. As a result of this, the Railways incurred loss of about thousand crores by the alleged false declaration given by the companies towards freight," it said.