The Himachal Pradesh Police on Monday moved a Sessions Court in Sirmaur district to declare the Managing Director of a company believed to be hiding in Dubai a proclaimed offender for alleged embezzlement running into thousands of crores of rupees.
"His last travel details were in Dubai and he is using a mobile phone of Dubai origin. His Indian passport has been revoked," he said.
A total of 19 people, including six officials of the Excise and Taxation Department, have been arrested.
The financial embezzlement allegedly involving over Rs 5,000 crore is one of the biggest scams in the state. The case is being investigated by different investigating agencies for the past five years.
The company closed the manufacturing operations in March 2014 and its officials disappeared.
While the Excise and Taxation Department had suffered tax evasion of Rs 2,175 crore, banks were defaulted to the tune of Rs 2,167 crore and the Income Tax Department is owed Rs 750 crore.
Investigations say 21 companies were constituted by the company from 2009 to 2013 and the modus operandi was siphoning off bank loans.
The fraud came to light in 2014 when the Excise and Taxation Department found a mismatch in the return filed by the company and its VAT declarations.
A case under relevant sections of the Indian Penal Code and the Prevention of Corruption Act was registered against the company officials in 2016.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)