PSUs

STC fraud case: SC issues contempt notice to P K Mittal

By IndianMandarins- 08 Jul 2018
969

stc-fraud-case-sc-issues-contempt-notice-to-p-k-mittalFormer chairman of Global Steel Holdings Limited Pramod Kumar Mittal seems to have flouted the firm commitment made before the Supreme Court to pay an amount of Rs. 100 crores to State Trading Corporation (STC) on or before April 30, 2018 out of total amount of Rs 751.32 crore. Out of this hundred crore, Mittal has deposited Rs 25 crore. This is bound to impact the state of affairs of State Trading Corporation's (STC) which is already reeling under crisis. In fact, realising the total dues of around Rs 2100 crores appears to be a distant dream. Earlier in March 2017, an FIR was filed against P.K. Mittal by STC on grounds of cheating and corruption. The CBI registered a case under Prevention of Money Laundering Act (PMLA) against Mittal and other top officials of STC for allegedly causing the PSU a loss of over Rs. 2100 crores. Following the on-going investigations, it came to notice that Global Steel Holding Limited and P.K. Mittal had over 30 per cent shares of Balasore Alloys amounting to Rs.245 crores which were frozen by the Enforcement Directorate in December last year. Significantly, STC has an operational cost of Rs 50 core per month and Rs 600 crore per year and even if entire Rs 2100 crore is realised, it will not be possible to run STC for more than three years. As of now, Mittal is defying the commitment made before the Supreme Court to pay Rs 25 crore before April 30, 2018.

free stat counter