CBI arrests businessman for forgery

By Our Special Correspondent

NEW DELHI, SEPT. 8. The CBI today arrested Mr. Subash Rastogi, Managing Director of Allied Deals Private Ltd., WMC Trade Private Ltd. and several other firms on charges of cheating and forgery during 1995-96 for allegedly exporting bicycle parts to Russia and Hong Kong from Mumbai by overpricing the export and claiming duty drawback on it. His alleged attempts to do so from Chennai caught the attention of enforcement agencies.

During interceptions by the DRI in Chennai in 1996, it was found that the export value of the goods were overpriced and further investigation showed that the goods exported from India were ``highly over-invoiced''. While being cleared in Russia at customs they were shown at a nominal value by allegedly submitting a duplicate copy, the CBI said in a release today.

This had caused a loss of Rs. 43 crores to the Government, the CBI said. In one instance, an export value of a consignment shown as Rs. 9 crores here was shown as Rs. 6 lakhs in Moscow by submitting allegedly fake documents. Of the total 1,200 shipping bills, the CBI has examined some 30 cases.

The CBI had registered 10 cases against the arrested person (seven in Mumbai and three in Chennai), 15 Delhi-based exporting companies and their directors. Investigation showed that all the exporting companies were controlled directly or indirectly by Mr. Ravinder Rastogi, Mr. Virender Rastogi, Mr. Subhash Rastogi, relatives and friends.

The CBI said the parties from whom they purchased bicycle parts exported by these companies did not exist at the given addresses. Most of the amount of duty drawback has been withdrawn in cash through the accounts operated or controlled by the Rastogi brothers and later misappropriated.

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Section  : National
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