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This is an archive article published on February 27, 1999

Cheating case against lubricants firm

CHANDIGARH, Feb 26: The Economic Offences Wing (EOW) of the city police has registered a case against Castrol India Limited for allegedly...

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CHANDIGARH, Feb 26: The Economic Offences Wing (EOW) of the city police has registered a case against Castrol India Limited for allegedly cheating the Haryana Transport Department and causing it a loss of over Rs 1 crore.

The case has been registered on the basis of a complaint filed by Haryana Deputy Transport Controller S. D. Khurana on behalf of the Haryana Transport Commissioner.

When contacted, local officials of Castrol India Limited refused to comment and said only officials in New Delhi could speak on this.

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Police sources said that as per the complaint, the Transport Department used to buy engine oil and lubricants from the firm. The company reportedly asserted that their oils were recommended by Tata and Ashok Leyland and were also cheaper than many other brands. However, the department doubted this as their buses reportedly got defective, were consuming more fuel and required servicing more frequently.

The department contacted Tata and Ashok Leyland and found they had made no such recommendations.

This caused the department a loss between Rs 1 crore and Rs 1.5 crore, the complaint said. Therefore, the company allegedly resorted to misrepresentation of facts to obtain orders from the Transport Department.

The case has been registered under Section 420 of the Indian Penal Code at the Central police station.

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