Iron ore transport scam: CBI raids 14 places in state
Rourkela: CBI sleuths on Thursday simultaneously raided the houses of a
Railway official and a mine broker in connection with alleged irregularities in
the transport of iron ore.
The raids
were conducted at the residence of Railway goods supervisor Bibhudutta Sethi
(D-165) in Sector-7 in the Steel Township and mining broker Nandalal Aggarwal
(K-15) in Civil Township area.
CBI sources
said the raids in the Steel City, conducted by a team from Kolkata with help
from the local CBI unit, were part of the nationwide raids on businessmen and
railway officials in connection with the alleged scam in ore transport. A total
of 14 locations in the state were raided simultaneously by specially formed
teams.
CBI officers
are believed to have seized incriminating documents during today’s raids. But they
were tight-lipped about the seizure.
Apart from
Rourkela, raids were also conducted in Rajgangpur near here and Barbil in
neighbouring Keonjhar district. Simultaneously, other CBI teams raided several
railway sidings, including in Jurudi and Banspani, from where iron ore is
loaded for transport. A total of 10 locations were raided in Keonjhar district.
Sources said
the size of the scam, perpetrated by unscrupulous businessmen with help from
some railway officials, was over Rs. 700 crore.
Last year, a
multi-disciplinary investigation had detected a massive fraud in ore
transportation by some mining companies, who defrauded Railways by passing off
ore actually meant for exports as ore meant for domestic consumption.
Freight charges
for export-bound iron ore, it may be noted, are more than five times that fixed
for ore meant for domestic consumption.
State BJP
president Jual Oram had written to the Railway Minister last year drawing the
latter’s attention to the organised racket in defrauding the Railway of its
rightful revenue by resorting to this subterfuge in cohorts with Railway
officials.
Railway
authorities had imposed a fine of Rs. 66 crore on a Kolkata based mining
company, which was found during inquiry to have siphoned off huge quantities of
iron ore from the mines in Keonjhar district and later exporting them.
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