CBI has registered a case of cheating and corruption against Pramod Mittal, the then Chairman Global Steel Holdings Limited, and former top officials of State Trading Corporation for allegedly causing a loss of Rs 2,112 crore to the public sector undertaking. The case has been registered on the basis of a complaint from PSU State Trading Corporation.
It is alleged that Mittal committed “criminal breach of trust” as he failed to make payments as per terms and conditions of the agreement with STC. The STC had arranged export of raw material for new steel plants of Global Steel Philippines Inc (GSPI) in the Philippines and Bosnia and also opened line of credit for the company, the complaint alleged.
It claimed that despite irregular payments and piling up of credit, STC officials allegedly renewed line of credit to the company. The cheques given by Global Steel Holdings Limited and its subsidiary Global Steel Philippines Inc (GSPI) to STC were allegedly dishonoured resulting in loss of Rs 2,112 crore to the public sector undertaking, the complaint alleged.
Besides Mittal, CBI has also named Lalit Sehgal, the then Chief Executive Officer of GSPI, the then Chairman cum Managing Director of the STC Arvind Pandalai and 18 other officers of the corporation.