In August last year, the Enforcement Directorate had provisionally attached immovable properties of the company, valued at approximately Rs 190 crore, pertaining to the wire rope business in Ranchi.
The Central Bureau of Investigation (CBI) has filed a first information report (FIR) against Usha Martin and its managing director Rajeev Jhawar for alleged offences under the Prevention of Corruption Act.
The FIR was filed on October 2 in Delhi and NCR against the Kolkata-based company, Jhawar and others. Officials of the central agency visited the company’s office in Delhi on October 3 in connection with the matter.
“The matter is under investigation and we shall fully cooperate with the CBI and other law enforcement agencies, under appropriate legal advice,” Usha Martin said in a stock exchange filing on Monday. On Tuesday, the company’s scrip fell 6.25% to end the day at Rs 23.25 on the Bombay Stock Exchange.
In August last year, the Enforcement Directorate had provisionally attached immovable properties of the company, valued at approximately Rs 190 crore, pertaining to the wire rope business in Ranchi. The action was in connection with sale of iron ore fines in earlier years from the company’s erstwhile mines at West Singhbhum in Jharkhand, Usha Martin said in its latest annual report.
The company had sold its steel and bright bar business last year as a going concern on a slump sale basis to Tata Steel’s subsidiary Tata Sponge Iron for Rs 4,525 crore. On a consolidated basis, Usha Martin’s turnover stood at Rs 2,153.82 crore, while net profit was at Rs 421.08 crore for the last fiscal.
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