CBI files case against former HPCL officials for Rs 6-cr fraud

MUMBAI: CBI has registered a case against three former officials of Hindustan Petroleum Corporation Ltd ( HPCL) for allegedly conspiring with outsiders and causing losses to the public sector oil major to the tune of Rs six crore.

According to CBI, HPCL's former chief regional managers - S N Pradhan and S P Donadkar, former deputy general manager (finance) Chandrakant Chunkare and Dena Bank's Kalamboli branch manager S K Ashwini allegedly abused their official position to favour Lalit Gas agency.

A case has also been registered against the gas agency's owner Nihalchand Jain and Jinesh Jain.

According to officials, the gas agency had availed excess credit limits from HPCL with "malafide intentions". Pradhan had allegedly enhanced the agency's credit limit to Rs 120 million, much beyond his authority of Rs two million during September 2006 and May 2007, officials said.

Pradhan also allegedly failed to take adequate bank guarantees as stipulated by HPCL norms.

No arrests have been made so far and investigations were on, the officials said.