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Karnataka police freezes BEML’s bank account

18 May 2012 Evaluate

Fresh trouble seems to be brewing up for defense PSU, BEML as the company is now being investigated by Malleswaram police, Karnataka for cheating case, and has been restricted from using its own bank account. The police on May 4, 2012, had sent a letter to the assistant general manager of the State Bank of India’s Overseas Branch, urging them to freeze BEML Defence Business Group’s accounts.

A cheating case based on the directions of the Seventh Additional Chief Metropolitan Magistrate (ACMM) was filed against the company. The court issued orders to the police after acknowledging a petition filed by managing director of Dreams Logistic Company India, Vivek Hebbar.

Vivek Hebbar, in his complaint logged with Malleswaram police, claimed that the BEML chairman and managing director, VRS Natarajan along with two others, had conned his company to the tune of Rs 35 crore. Dreams Logistics, which deals in iron ore, in December 2010, entered into an agreement with Prasanna V Ghotage (a Belgaum-based trader and exporter) and Vaman Kumar (CEO of Pune-based Nordbell Commercial) to invest Rs 35.1 crore for the purchase of one lakh metric tonnes of iron ore.

The company was taken aback, when they learnt that duo loaded only 71,920 MT against 96,500 MT iron ore claimed for shipment, which also on degrading the quality of the iron ore, generated a total loss of Rs 22.1 crore for the company. The company, claiming charges against dou along with Natarajan, alleged that the missing ore was sold in China. Private company’s MD also accused the trio of stealing documents of business transaction from the customs house agent.

BEML Share Price

1771.10 30.95 (1.78%)
17-Apr-2026 16:59 View Price Chart
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