Stocks

Deep Industries slumps to near 3-year-low

BL Internet Desk June 4 | Updated on June 04, 2018 Published on June 04, 2018

ONGC officials have been accused of abusing their official position in giving a contract worth Rs 312 crore to Deep Industries Ltd.

Shares of Deep Industries Ltd slumped as much as 19.8 per cent to Rs 107.15, its lowest since July 17, 2015, as the company has been brought under CBI scanner.

The Central Bureau of Investigation has booked 13 senior serving and retired officials of ONGC for alleged irregularities in giving a contract to Deep Industries for supplying gas dehyrdation units for its Rajahmundry plant in Andhra Pradesh.

Those named in the FIR in connection with the alleged scam in 2014 include former executive director D G Sanyal, then director (Onshore) Ashok Verma and ex-DGM (Production) Arup Ratan Das.

They have been accused of abusing their official position in giving a contract worth Rs 312 crore to Deep Industries Ltd, an accused in the case, for supplying gas dehyrdation units, causing a loss of Rs 80 crore to ONGC, the CBI said.

The officials had awarded the contract to Deep Industries by overlooking the guidelines of the public sector undertaking and the fact that the company was ineligible due to technical deficiencies. Deep Industries has filed writ petitions with the High Court in Hyderabad.

More than 1 million shares were traded against 30-day moving average of about 7.4 million. Deep Industries stock has lost more than half its value in 12 months up to Friday. ONGC shares were down 0.6 per cent.

(With inputs from Reuters)

Published on June 04, 2018
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