Accused in cheating case to file defamationsuit against Essar Shipping

A shipping line company owner,who was arrested recently in a cheating case filed by Essar Shipping,now plans to file a defamation suit against Essar...

Written by Aiswarya A | Mumbai | Published: February 8, 2009 3:56 am

A shipping line company owner,who was arrested recently in a cheating case filed by Essar Shipping,now plans to file a defamation suit against Essar claiming that the company had accused him of cheating without possessing any documents to prove the case. Vinos Kumar,the owner of Flindholt Shipping Lines India Pvt Ltd,was arrested by the Tardeo police for allegedly cheating Essar to the tune of Rs 3.75 crore. He is out on bail now. According to the police,Essar’s legal representative had filed a case in December against Vinos Kumar.

“As per the complaint,Essar had given a production order to a Chinese company. The prodcution was completed by September 2008 and for the delivery of goods Essar had signed a contract with Tianjin Sor International Logistics Pvt Ltd. Tianjin had in turn signed a contract with Kumar who had then tied up with K World Lines shipping company to deliver the goods.

However,K World Lines shipping claimed that it had not been paid its dues and threatened to return the goods. Following this,Essar had made a second payment and collected the cargo,and eventually accused Kumar of cheating it,” said an official attached to the Tardeo police station.

The police had arrested Kumar in a fortnight,frozen his bank accounts and seized property worth over Rs 20 lakh. “According to Essar’s allegations,Tianjin had paid around Rs 3.5 crore to Kumar’s company,but he had transferred the money to his account and put it in fixed deposit. Later,he had obtained an OD of Rs 2.5 crore. At the time of his arrest,there was a sum of around Rs 1.18 crore in his account. We directed the bank to freeze it. We also seized a car and ornaments from him,” said the official.

Kumar,who was eventually released on bail,has accused Essar of targeting him on flimsy grounds as he had not entered into any contract with it. “The mistake was on the part of Tianjin,which credited the amount to my account. Moreover,if the consignment was delayed,Essar should have made a formal payment to K World,but they didn’t do it. I had entered into contracts with Tianjin and K World and not with Essar. There was no money transaction between us. If Essar wants to fight a case,they would have to fight it in Singapore as per the international shipping laws,” said Kumar.

Kumar has approached the court seeking that his seized properties be returned to him and also plans to sue Essar on charges of defamation. “I have been in this business since 1984 and this case threatens to damage my reputation,” said Kumar.

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