M A I N   N E W S

Fraud in bicycle parts export

New Delhi, September 8
The Central Bureau of Investigation (CBI) today arrested Subhash Rastogi, owner of a chain of multinational companies, on charges of exporting junk bicycle parts to Russia and Hongkong between 1995 and 1996 at exhorbitant rates and swindling more than Rs 43 crore with the connivance of some senior Customs officials.

CBI officials said Rastogi was arrested from his house in Noida under various sections of the Indian Penal Code, including acts of forgery and cheating. He has been absconding for the past two-three years and had been hiding in Singapore.

The officials are also looking for his two brothers — Dubai-based Ravinder Rastogi and London-based Virender Rastogi — who were involved with him in the fraud.

Involvement of a few Customs officials is also being probed. The Rastogis are related to a former Customs Director. Another brother of Subhash Rastogi, Narendra Rastogi, is based in the USA and his activities would also come under the scanner when the CBI further investigates the matter.

The officials said they would also look into the possible involvement of other government officials besides probing if Subhash Rastogi had any political connections.

The CBI’s investigation, the officials said, had revealed that during 1995-96, 15 Delhi-based companies exported bicycle parts to Russia and Hongkong from Mumbai at an exorbitantly over price export value and claimed excessive duty draw back on such exports.

A few export consignments were also attempted to be exported from Chennai which were detained by the Directorate of Revenue Intelligence (DRI) in 1996 and on examination, it was found that the export value of the goods was highly over invoiced. UNI