CBI books former chief of PEC in ₹531 crore cheating case

PEC facilitates export and import of various commodities and is also engaged in guaranteeing payments to exporters and providing financial facilities to importers.

The Central Bureau of Investigation (CBI) has booked a former chairman-cum-managing director (CMD) of public sector firm PEC Limited and six serving or retired officials of the company in a case of cheating to the tune of Rs531 crore.

The Central Bureau of Investigation has also booked Pisces, its owner Soumit Ranjan Jena, and two directors of Pisces’s successor company Pisces Exim (India) Private Limited. (File photo)

PEC facilitates export and import of various commodities and is also engaged in guaranteeing payments to exporters and providing financial facilities to importers.

According to the CBI’s first information report (FIR), which named former CMD AK Mirchandani and six more serving or retired PEC officials, between November 2010 and March 2012, PEC entered into an agreement with a private company Pisces Exim, which was to export iron ore to a foreign buyer. A copy of the FIR was seen by Hindustan Times.

The transaction was to be facilitated and financed by PEC by way of an interest-bearing advance, the company said in a complaint to the CBI.

Under the agreement, PEC released ₹348 crore to Pisces.

But, according to the FIR, Pisces failed to supply iron ore as well refund the advance extended to it. Now the outstanding amount, including interest, stands at ₹531 crore.

HT couldn’t reach out to Mirchandani. Emails sent to M Nagaraj, current chairman and managing director of PEC Limited,and to Pisces Exim remained unanswered as of press time.