The Central Bureau of Investigation (CBI) has lodged a fresh case against former chairman and managing director of PEC, Arun Kumar Mirchandani, along with several other former officials. The case revolves around alleged financial irregularities causing a loss of Rs 194.61 crore to the public sector enterprise. Previously, CBI was registered several other cases against Mirchandani and former PEC officials, related to a government enterprise under the Ministry of Commerce. PEC, which helps with bringing things into and out of the country and gives money help to people bringing things in, is now caught up in a confusing mess of mishandling money.
As per authorities, the recent case revolves around KS Oils based in Morena, which allegedly obtained financial help from PEC to bring in raw edible oil. This included making partnership agreements and obtaining funding through seven letters of credit during 2012-13. The security in this situation involved using post-dated cheques (PDCs).Letters of credit (LC) served as guarantees by banks on behalf of customers, ensuring payment commitments. PEC, in turn, took buyer’s credit from corresponding foreign banks. However, KS Oils is alleged to have obtained goods fraudulently, promising to settle its liabilities with PDCs but failing to do so within the credit period.As a consequence, PEC had to meet buyer’s credit obligations on due dates, leading to a total outstanding amount of approximately Rs 194.61 crore, with the principal sum standing at Rs 59.82 crore, as stated in the complaint lodged by PEC on July 14.The FIR also shows that PEC made agreements called ‘High Sea Sale’ and a ‘Deed of Pledge’ to make sure they get some profit from trades. The company also made credit periods longer by rolling over foreign letters of credit.”Moreover, these were third-party agricultural land in multiple parcels against which neither equitable mortgage was created nor was it freely saleable to secure the interest of PEC. Mirchandani, as a member of Committee of Management, approved the proposal for enhancement of financial limit from Rs 100 crore to Rs 150 crore…against the aforesaid property document of agricultural land,” the FIR said. PEC alleged that he failed to protect the interest of the company while approving proposals.He allegedly permitted an increase in KS Oils’ financial limit using collateral security of agricultural land, ignoring accurate valuation reports. Other former officials, including Rajiv Chaturvedi, SK Mamtani, SC Rishi, SK Virmani, and KS Oils’ managing director Ramesh Chand Garg, are also named in the FIR. The CBI’s investigation reveals a complex financial scandal, alleging mismanagement and misconduct within PEC, necessitating a thorough examination of the matter.