Rs 1,000-cr loss to railways: CBI files case against 2 Bengal firms | business | Hindustan Times
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Rs 1,000-cr loss to railways: CBI files case against 2 Bengal firms

The Central Bureau of Investigation (CBI) has registered cases against West Bengal-based Rashmi Group companies — Rashmi Metaliks and Rashmi Cement — for causing an alleged revenue loss of Rs 1,000 crore to the Indian Railways.

business Updated: Feb 10, 2012 21:17 IST
Vivek Sinha

The Central Bureau of Investigation (CBI) has registered cases against West Bengal-based Rashmi Group companies — Rashmi Metaliks and Rashmi Cement — for causing an alleged revenue loss of Rs 1,000 crore to the Indian Railways.


The Rs 3,000-crore Rashmi Group is an industrial conglomerate with interests in steel and cement.

The loss occurred as the two companies obtained concessions from the railways on freights for transportation of iron ore from Orissa. The concessions were obtained on the pretext that iron ore is being transported for domestic consumption, which was subsequently exported.

The charges for export-bound iron ore is substantially higher than that levied on ore intended for domestic consumption.

A CBI spokesperson confirmed the development to HT. "It was alleged that both the companies were engaged in production of iron products such as sponge iron and pig iron, and in this process procured iron ore from mines of Orissa," the spokesperson said.

Rashmi Group did not respond to calls, messages or email from HT.

The companies also submitted declarations stating consumption of much lesser quantum of iron ore and in the process procured larger number of rakes from the railways.