CBI initiates inquiry against fmr NTC Chairman

CBI started an inquiry against a former Chairman-cum-Managing Director of National Textile Corporation for alleged fraudulent sale of prime property in a posh area of Mumbai at throwaway prices to a private company.
CBI sources said the preliminary inquiry has been started against former NTC CMD Ramachandran Pillai and New Jack Printing Press Private Ltd for causing a loss estimated to be in hundreds of crores of rupee to the exchequer.
The agency alleged Pillai had committed gross misconduct by favouring the company in ensuring that ownership rights of the plot owned by NTC in Parel area of Mumbai were transferred to the company.

The plot, measuring 4080 square meters in Parel area, was leased out to New Jack Printing Press Private Ltd but it was not allegedly paying the rent which had accumulated to over Rs 90 crore. The NTC later agreed to sell the land at Rs 17.5 crore in December, 2007 to the company, which was far less than even the accumulated rent against it.
It is alleged that NTC agreed to a rent settlement at Rs two crore in an arbiteration proceedings which raised question marks over the intention of the Corporation to realise its due from the company.
CBI has alleged Pillai was the Chairman of the various assets sales committee meetings held to deal with the issue but the minutes of meeting were not signed by any of the members except him.

The committee allegedly changed its stand repeatedly and did not refer the matter to the Textile Ministry and instead sold property to the company.
The agency has alleged NTC manipulated the sale of land by restricting the competitive bidding by including a clause that only those parties and developers who had purchaed land from NTC earlier can purchase and use it in their projects.