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Pawan Ruia arrested on charges of cheating Rlys

Industrialist held for violating supply pact
Last Updated 10 December 2016, 19:27 IST

 The state CID on Saturday arrested Kolkata-based industrialist Pawan Kumar Ruia from the national capital on charges of cheating.

Ruia was arrested on the basis of a complaint lodged by a deputy director of the Indian Railways for violating supply agreements.

According to the complaint, the Railways had supplied raw material and parts of wagons worth Rs 50 crore to Jessop, a company under the banner of the Ruia Group, but the company failed to meet the agreement terms.

While Ruia had bought companies like Jessop and Dunlop, an official communiqué from his group, however, said he held no shares in either of the two firms. The arrest came following an investigation by the CID, initiated a few months ago, after a series of fire accidents at the Jessop factory at Dumdum in east Kolkata.

Following this, the CID claimed to have unearthed mismanagement in the Railways’ order, which gained further credence after investigators visited the factory, accompanied by Railways officials, and found neither the raw materials nor the finished goods on the premises.

While the Railways deputy director lodged a complaint, Ruia moved the Calcutta High Court for anticipatory bail in both the cases lodged against him. The court ordered the CID not to take any stringent action against him, at the same time, asking Ruia to cooperate with the probe. He, however, failed to meet the police despite repeated notices.

Ruia had also sought an advance bail in the case filed by the Railways, but the high court wanted to hear the complainant’s side, too, and set it aside for hearing on December 12.

The CID, however, went ahead and arrested him under Sections 420, 406 and 409 of the Indian Penal Code. In an official statement, the Ruia Group refuted his involvement with Jessop.  “Mr Pawan K Ruia does not hold any position in Jessop & Co Ltd. He is neither a Director nor a Shareholder of the Company. He is not even an occupier of any of the Jessop premises,” the statement read.

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(Published 10 December 2016, 19:27 IST)

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