KRBL plunges 20% as ED attaches properties in Embraer defence deal case

Shares of basmati rice exporter, KRBL hit a lower circuit limit of 20 per cent to Rs 253 apiece on the National Stock Exchange (NSE), also its 52-week low on Friday, on report that the Enforcement Directorate (ED) Thursday attached assets worth Rs 15 crore of the company in connection with 2008 Embraer deal case. KRBL is the manufacturer of India Gate Basmati Rice.

The case pertains to payment of alleged commission by Embraer to clinch the $ 208 million deal with India, in which it is suspected that kickbacks were paid, the news agency PTI reported.

The attached assets include a land and rice mill located in Dhuri tehsil of Sangrur district in Punjab and it belongs to the rice company KRBL Ltd, the agency said in a statement, added report. CLICK HERE TO READ FULL REPORT

“KRBL is not involved at all in any money laundering case, though it is correct that on July 4, 2019 ED have attached a portion our land at Dhuri Tehsil Sangrur District of Punjab, valuing about Rs 15 crore without giving any show cause notice to the Company,” KRBL said on clarification on news report.

These lands are located adjacent to the company’s factory and have no impact on working of its plant located at Dhuri tehsil Sangrur district of Punjab, it added.

Gautam Khaitan, Solicitor, was in KRBL board as an Independent non-executive director from July 2007 till April 2013 when on our insistence he resigned from the board after it came to KRBL's knowledge that he was allegedly involved in some illegal activities.

Evidently Khaitan's individual dealings have brought KRBL's name into the alleged illegal activities, the company said, adding KRBL will clear its name as legal process will take its course.

The trading volumes on the counter jumped 16-time with 2.24 million shares on the NSE and BSE on Friday.