EOW to investigate UK-based firm’s cheating allegations against two Mumbai companies
A London-based company, Aburi Composites, on Monday registered a case with the economic offences wing (EOW) against an Andheri-based company, Time Technoplast Ltd, its directors Anil Jain and Navin Jain, and the officials of TUV Rheinland. The complainant, Subhash Sharma, the director of Aburi composites, claimed that his company had been cheated of ₹14.02 crore. The accused said that the complaint is ‘frivolous’ and will file a defamation case.
As per the complaint, Anil Jain approached Sharma’s company in January 2016 with a proposal to supply composite cylinders, a type of cylinder that has no metal component. Jain said the cylinders had been duly certified as ‘composite’ by certifying agency TUV Rheinland, claimed Sharma. The two companies entered into an agreement with Jain’s company in March 2016. Aburi placed an initial order of 2,45,376 composite gas cylinders of 24-litre and 29-litre capacity.
To cater to a Bandladesh-based client, Global LPG Ltd, Aburi Composites later modified the order, asking TimeTech to supply them with 26.2-litre capacity composite cylinders. The rest of the terms of agreement, including cylinder design, were to remain the same. Following this, a payment of ₹14.02 crore was made.
The delivery was made at the Bangladesh port in October 2016, but allegedly had metal components. The accused submitted the letter signed by Malcom Dadina, lead auditor and project manager of TUV’s Mumbai office. In August 2017, certificates for the 26-litre cylinders were also submitted. Sharma alleged that the companies colluded to produce false documents, and that Petroleum and Explosives Organization of Maharashtra had not granted approval to TimeTech to manufacture the cylinders.
Anil Jain said, “In a deal of 750,000 cylinders, Aburi failed to make the delivery to their client, causing a contractual dispute. For the breach of contract and unpaid dues, TimeTech has claimed an amount of US$ 15 million.” Dadina said he was not aware of the complaint.