Rajasthan firm says no foul play in ammo sales | jaipur | Hindustan Times
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Rajasthan firm says no foul play in ammo sales

Explosives manufacturer RECL, which is at the centre of the controversy over missing trucks, denied having broken any rule on Saturday.

jaipur Updated: Aug 28, 2010 23:09 IST
HT Correspondent

Explosives manufacturer RECL, which is at the centre of the controversy over missing trucks, denied having broken any rule on Saturday.

Addressing a press conference here, Dholpur-based RECL (Rajasthan Explosives and Chemicals Ltd) refuted the charge that the company had supplied explosives without verifying the buyers' licences.

RECL general manager, marketing, T K Sinha said the company had supplied explosives to Ganesh Magazine and Sangam Explosives in Madhya Pradesh on the basis of relevant documents required under the Indian Explosives Rules, 2008.

Sinha said the MP companies sold the explosives to their sister concerns in Rajasthan for two reasons. The buyers saved on transport costs by not taking the delivery in MP.

And by showing the MP firms as buyers, the dealers paid only a two per cent central sales tax, while an intra-state sale would have attracted a 12 per cent VAT.

What's more, Sinha said the dealers were not supposed to inform RECL to whom the material would be sold. They were required to keep the state in the loop.

On the media reports that 61 trucks went missing in the first round, Sinha said it was actually 58 consignments sent on 22 trucks to Ganesh Magazine.

Similarly, the second report on 103 missing trucks was also inaccurate, as 103 consignments were sent on 27 trucks to Sangam Explosives.

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