It was discovered when the gold was weighed for delivery to a liquidator.
The Madras High Court has ordered an investigation by the Crime and Crime Investigation Department (CBCID) into the 103,864 kg of gold missing out of the 400.47 kg seized by the Central Bureau of Investigation of Surana Corporation Ltd and kept under lock and key. . The 103,864 kg of gold was found missing when it was weighed for delivery to the Surana Corporation liquidator. The order from the superior court arrived on Friday.
The CBI, in a curious presentation, told the court that the gold when seized several years ago was weighed together and when it would be delivered to the liquidator, each item was weighed individually and therefore there was a difference. According to CBI, the seized gold was kept in the vaults of Surana Corporation and the keys were handed over to a special court for CBI cases.
Rejecting an objection raised by the CBI against the CBCID investigation as it would reduce the organization’s prestige, the High Court said that all police officers should be trusted and ordered the investigation. The court also ordered liquidator C Ramasubramaniam to file a complaint with the CBCID.
The case dates back to 2012, when the CBI filed a case against officials from Metals and Minerals Trading Corporation (MMTC) for showing improper favors to Surana Corporation, a gold importer. The investigative agency had raided Surana Corporation and seized 400.47 kg of gold.
Later, the CBI said that the seized gold was not necessary to prosecute MMTC officials for corruption, but brought another case in 2013 against Surana Corporation for violation of Foreign Trade Policy. The seized gold was transferred from the 2012 case to the 2013 case. The case was subsequently closed as no crime had been committed.
However, the CBI had asked the Special Court to transfer the gold to the office of the Director General for Foreign Trade (DGFT) on the grounds that ownership of the metal is subject to a corruption investigation. The company sought possession of the gold as it had taken out bank loans and the State Bank of India (SBI) sought possession of the yellow metal. The banks had initiated insolvency proceedings against Surana Corporation.
In 2017, the Special Court ordered the delivery of the gold to SBI and when the inventory was conducted it was found that the gold weighed only 296.06, which is 103.864 kg less than the 400.47 kg originally seized in 2012.
Liquidator Ramasubramaniam had approached the High Court to ask CBI for instructions to hand over the missing gold.
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