The CBI is probing the alleged involvement of officials of the state-owned trading firm State Trading Corporation of India (STC) in the irregularities in trade transactions for exports of various items worth Rs 725 crore, Parliament was informed today.
"STC has identified irregularities committed by the associates, insurance consultants and the officials of STC. Charge-sheets were issued by
STC to all its seven officials involved in the transaction," Commerce and Industry Minister Anand Sharma said in a written reply to Rajya
The matter pertains to default by foreign buyers to the tune of Rs 725 crore for exports of various items by business associates of STC under
the Credit Linked Insurance Scheme. The credit was extended by the Exim Bank to STC and insurance policies were from New India Assurance and ICICI Lombard.
STC approached the CBI in December 2010 for criminal investigation against the associates, insurance consultant and officials involved.
"Subsequently, STC lodged a criminal complaint dated February 23 with CBI, Mumbai. CBI has registered (the case) .. on February 24, which is under investigation," Sharma said.
The minister informed the house that there is an outstanding recoverable by the associates from foreign buyers to the tune of Rs 725 crore.
"Principal amount related to credit extended to associates, outstanding for recovery by STC is about Rs 397 crore," he said adding that the
balance about Rs 328 crore were not financed by STC.
Separately, STC in 2011 filed a suit in Mumbai High Court against business associates for recovery of outstanding amount. It had filed a
petition in the same year for winding up of defaulting associates.