House panel pulls up MSTC for irregularities in gold exports

A.M. Jigeesh V. Rishi Kumar New Delhi/ Hyderabad | Updated on November 15, 2017

The Parliamentary Committee on Public Undertakings has pulled up the Metal Scrap Trading Corporation Ltd (MSTC) for alleged violation of norms and causing losses to its gold exports business.

The Parliamentary Panel was looking into a CAG (Comptroller and Auditor General) report on export of gold jewellery by MSTC. Representatives of the Ministry of Steel and MSTC Ltd were grilled by the panel, headed by Congress MP, Mr Jagdambika Pal, sources said.

The panel members demanded that the “Miniratna” status of MSTC be cancelled. They felt that a proper enquiry by the Central Bureau of Investigation will bring to light the issues relating to favouring firms by flouting norms and causing loss to the corporation.

The CAG, in its audit report on export of gold jewellery by MSTC between 2007-08 and 2008-09, said the corporation did not analyse the demand of gold jewellery in foreign markets before venturing into the export business.

It said MSTC had to face a financial burden of Rs 611.79 crore due to non-recovery of advance and related financial expenses, as the foreign buyers defaulted on their payments.

According to sources, the committee members expressed concern in the way the business was handed over to companies located abroad without proper due diligence. They alleged that it had resulted in a huge loss to the Miniratna but gains to those at the helm. The CAG is also likely to make a presentation on the issue before the panel soon.

The representatives of the Steel Ministry and MSTC told the panel that claims of Rs 654.98 crore have been made against six associates. They said regular hearings of the cases were taking place since 2009. They said 46 cases have been filed in foreign countries against buyers from the UAE, Singapore and Kuwait.

The panel felt that this was a fit case to pull up those responsible for such glaring lapses and deliberately causing losses to the corporation for personal gains.


Published on April 19, 2012

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like