CBI arrests mining firm CMD on fraud charge

The CBI arrested the CMD of a mining company on the charge of defrauding central cooperative body Nafed of about Rs 67 crore.

Updated: Sep 28, 2011, 22:34 PM IST

Bhubaneswar: The CBI on Wednesday arrested the CMD
of a mining company on the charge of defrauding central
cooperative body Nafed of about Rs 67 crore, official sources
said.

A team of CBI sleuths from Delhi accompanied by local
police arrested Zenith Mining Pvt Ltd CMD Syed Nizam Ahemad
from a place on the outskirts of the state capital.

Nizam, whose car and a revolver were seized, was produced
before the CBI court here which allowed the agency to take him
to Delhi on three-day transit remand.
The businessman was accused of defrauding National
Agricultural Cooperative Marketing Federation of India (Nafed)
of Rs 67 crore after taking a loan of Rs 90.22 crore.

Though Nizam repaid Rs 30.47 crore, he did not repay the
rest of the amount and interest, said CBI DSP P Singh who led
the team.

Nafed had lodged a complaint with CBI`s Economic Offence
Wing against him last year.
Nizam`s firm which operated a small iron ore mines in
Sundergarh district, had taken loan from the Nafed for
undertaking iron ore export.

PTI