Palmolein oil scam; 2 accused remanded to police custody

GUWAHATI, March 23: The Special Court here remanded today two persons accused and arrested by the CBI in connection with a multi-crore palmolein oil scam, to two days' police custody for interrogation and directed the CBI to produce them before the court on Monday next. Producing the two arrested accused Ajay Kumar Nawka, son of Late Satya Narayan Nawka of Saniram Bora Road, Ulubari in the city, and Dilip Medhi son of Late Ananda Medhi of MB Road, Fatasil in the city, Public Prosecutor for the CBI MV Ramanaiah pleaded before the Special Court for their remand to police custody for a period of seven days for the purpose of interrogation. The Public Prosecutor argued that interrogation of the arrested person was absolutely necessary and some of the suspects who were associated with the arrested in connection with the case, had gone underground. The CBI in its forwarding petition told the Court today that while investing the case (CBI Case No RC 12(A)/98-SHG Under Sections 120, 420, 468, 471 of the IPC and Section 13(2) read with 13 (1) of the PC Act, 1988, it was found that with the help of fake allotment orders purportedly issued by the Government of Assam during the years 1994-95, 1995-96 and 1996-97, palmolein oil quotas were allotted by the State Trading Corporation Ltd to the Government of Assam for their distribution through the Public Distribution System (PDS). Investigations revealed that during the period, against 184 delivery orders, a total quantity of 1,487.811 Metric Tonnes of palmolein oil, worth about Rs 4.27 crore, were lifted in the name of Samabay Samittee or Cooperative Societies throughout the State of Assam on fake allotment orders of the District Administration (Food and Civil Supply) and the authorisation letters issued by the so-called Samabay Samittees or Cooperative Societies. Investigation has also brought to the fore that allotment orders and authorisation letters produced for lifting the materials from the State Trading Corporation Ltd were also fictitious. The persons arrested and produced before the court were actively involved in 'manufacturing of fake records' on the basis of which palmolein oil quotas were lifted from the State Trading Corporation Ltd, Guwahati. Search operations conducted on March 22, 2001 at number of places within Guwahati resulted in recovery of incriminating documents which were seized subsequently, the CBI petition said. Several persons, accused in connection with the case are absconding and meanwhile, search operations in the premises of several accused were also conducted by the CBI. Though some of the accused moved the Gauhati High Court praying for anticipatory bails, all their prayers were rejected by the High Court.