CBI carries out searches at 100 locations across 11 states in separate bank fraud cases

NEW DELHI: The CBI has registered a case of corruption against managing director and CEO of IFFCO US Awasthi, former managing director of Indian Potash Limited Parvinder Singh Gahlaut and their sons, among others, for alleged irregularities in the import of fertilisers and claiming subsidies, officials said on Wednesday.

After lodging the FIR, the CBI has launched a search operation at 12 premises linked to Awasthi and Gahlaut in Delhi, Mumbai and Gurugram, they said.

The case pertains to the accused allegedly claiming higher subsidies from the government by importing fertilisers at inflated prices and receiving commission from the supplier through sham transactions, the officials said.

The fertilisers are supplied to farmers on which the government provides a subsidy to keep the prices reasonable, they added.

The CBI has alleged that the accused, in order to cheat the government by claiming a higher subsidy, imported fertilisers and raw materials through Kisan International Trading FZE in Dubai (a subsidiary of IFFCO) and other middlemen at highly-inflated rates, agency spokesperson Joshi said in a statement.

The inflated prices covered the commission meant for Awasthi and Gahlaut, which was transferred by the overseas suppliers to them through sham transactions involving the accused, the officials said.

The Central Bureau of Investigation (CBI) has also booked Awasthi’s sons Amol, the promoter of Catalyst Business Associate, and Anupam, the promoter of Catalyst Business Solutions.

Gahlaut’s son Vivek, Pankaj Jain of the Dubai-based Jyoti Group of Companies and Rare Earth Group, his brother Sanjay Jain, president of Jyoti Trading Corporation and a beneficial owner of other entities of the Jyoti Group, senior vice-president of Jyoti Trading Corporation Amrinder Dhari Singh and chartered accountant Rajiv Saxena, who is also the promoter of Midas Metal International LLC and other companies, have been named in the FIR as accused.

The agency has also booked an employee of Pankaj Jain, Sushil Kumar Pachisia, and unidentified directors of the Indian Farmers Fertiliser Cooperative Limited (IFFCO).