Videocon has tumbled after being blacklisted by the World Bank for three years. The consumer goods company is quoting at Rs 210, weaker by 7%, on the BSE. The shares had opened at the day's high of Rs 220 and have touched a low of Rs 200 thus far. A total of 2.8 lakh shares have been traded on the counter as against the two-week average of 2.3 lakh shares.
Accusing Venugopal Dhoot-led Videocon of indulging in fraud and corrupt practices, the World Bank has blacklisted the company for three years, ending January 11, 2013.
Videocon was sent a “letter of reprimand subsequent to an administrative process” permitting the company to respond to the allegations, the World Bank said in its latest update of companies blacklisted for doing business due to fraud and corruption charges.
Videocon’s name has been listed among firms and individuals ineligible to be awarded a World Bank-financed contract, as it has violated fraud and corruption provisions of the procurement guidelines.
The World Bank had taken a similar tough line with Satyam Computer months before the IT company’s founder chairman confessed to an accounting fraud.
The Videocon group is a conglomerate with interests in consumer electronics, home appliances, oil & gas, telecom & media.