CBI raids offices of Usha Martin

03 October 2016

Central Bureau of Investigation (CBI) has conducted raids on the offices of Usha Martin, a leading wire rope manufacturer, in connection with a case related to the company’s iron ore mine at Ghatkuri in Jharkhand.

The mine was allotted to the steel company in 2005-06 and the raids conducted on Saturday in the company’s offices at Kolkata, Jamshedpur and Ghamaria were part of an ongoing investigation.

The CBI had asked for certain documents relating to the case and these have been handed over by the company to them, an official who did not wish to be named said. The CBI has registered a case of alleged criminal conspiracy cheating and provisions of Prevention of Corruption Act against promoters of Usha Martin , the company and the then Director Mines Jharkhand government a PTI report said quoting agency sources. he company was allegedly favoured over five other applicants in allotment of iron ore mining lease in Ghatkuri at West Singhbhum district of Jharkhand in 2005.

It is alleged that the state government has apparently favoured Usha Martin since the company had given an undertaking that it would utilize the iron ore for captive consumption at its plant in Ghamaria in the state. This led the state government to recommend Usha Martin as a special case for captive use in mine allotment. CBI has alleged that the company later went back on its undertaking taking advantage of the fact that the special reason was not specifically mentioned in the Cabinet note in this regard.

Source – ET