4 former HPCL officials,1 branch manager booked for corruption

The Central Bureau of Investigation has booked four former senior officials of Hindustan Petroleum Corporation Limited and a branch manager of Dena Bank in a conspiracy and corruption case.

Written by Express News Service | Mumbai | Published:August 20, 2010 1:10 am

The Central Bureau of Investigation (CBI) has booked four former senior officials of Hindustan Petroleum Corporation Limited and a branch manager of Dena Bank in a conspiracy and corruption case. The five men have been accused of favouring business interests of a distributor and incurring a wrongful loss of Rs 6.4 crore to the petroleum company. The agency is now searching residential and official premises of the senior officials.

According to CBI,the HPCL officials have allegedly favoured Distributors Nihalchand Jain and his son Jinesh. The duo—distributors for a LPG distribution agency — in connivance with a few unknown officials of Dena Bank applied for distribution network even though they did not satisfy the prescribed credit limits. Further,the bank,“was casual” over the dishonoured cheques of the duo and did not take necessary action at the right time. The senior officials at HPCL are alleged to have enhanced the credit limit to Rs 1.2 crore,much beyond the competence of the agency. The total cheques,in 14 lots,amounting to Rs 8.01 crore continued with the company making losses. The authorities are believed to have “tinkered with the internal records” to accommodate the distributor’s business interest.

The agency is now probing if there are other such cases,and also checking the various lapses in credit policy of the company and the banks involved.

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