Rs 75-lakh fraud at public sector firm | india | Hindustan Times
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Rs 75-lakh fraud at public sector firm

india Updated: Jun 12, 2009 03:12 IST
Yogesh Joshi

The Central Bureau of Investigation (CBI) on Thursday raided the premises of public sector undertaking, Hindustan Antibiotics Limited (HAL), on Thursday morning. Its general manager KP Rajan has been charged with fraud of Rs 75 lakh.

However, no arrests have been made so far.

The raid on India’s first penicillin manufacturing company has allegedly exposed fraudulent purchases of raw material. The amount, officials said, could be just a tip of the iceberg, adding that further investigation was on.

“The search has led to expose fraudulent purchase of material worth Rs 75 lakh,” said Superintendent of Police (CBI) S.C. Gupta. “After searching documents, we found a nexus between Rajan and a Mumbai-based company, Pragati group.”

The CBI has filed cases against Rajan and the Pragati group. After conducting searches at Rajan’s home and office, CBI officials said a bunch of papers had been confiscated.

Since a few years, HAL has come under a cloud for alleged financial irregularities.

Since two days, the CBI has been conducting a special nation-wide anti-corruption campaign. “The raids have targeted government officials,” said CBI national spokesperson Harsh Bhal.