Steel Min seeks CBI probe into Rs 600-cr gold deal

NEW DELHI: Suspecting a "scam", the Steel Ministry has sought a CBI probe into default of payment for exports of gold worth Rs 600 crore to Dubai last year by the state-owned trading firm MSTC.

"Steel ministry has recommended a CBI inquiry into the MSTC transaction. The ministry wants every minute detail of the suspected scam out," a senior official said. MSTC exported gold worth about Rs 600 crore in fiscal 2008-09.

"The ministry also wants CBI to ascertain role of certain top company officials in the transactions," he said.

Chairman and Managing Director of MSTC S K Tripathi could not be reached.

The exports carried were under Export Credit Guarantee Corporation of India (ECGC) cover--which provides a range of credit risk insurance covers to exporters against loss in shipments of goods and services, the official said.

However, in case a scam or fraud is established, ECGC would not pay the damages.

Also, the Steel Ministry would be sending a fact-finding team to Dubai soon to see if some part of the amount could be recovered. Some money has already been received.

The buyers were given 180-day credit period but defaulted, he said.

MSTC, which is the channelising agency of such exports under the steel ministry, has a turnover of about Rs 300 crore, the official said.