The Enforcement Directorate (ED) yesterday raided the Delhi office of Padmini Polymers Ltd. Sources in the Directorate said the company was allegedly involved in large-scale violation of the value-based advance licence (Vabal) scheme that ran into over Rs 200 crore.
The Vabal scheme enabled exporters to import raw materials at zero duty for export production.
The ED investigators, who arrived at the company office in Okhla around 10 a m, continued their search throughout the day. According to sources, simultaneous raids were also carried out on the residence of the company's promoter and chairman, Vivek Nagpal. Searches at other offices and residences of top company executives were expected to continue throughout the night.
According to preliminary information available with the Directorate, the company, which enjoys the status of a star trading house, is suspected to have over-invoiced its exports.
Although the extent of misuse is still to be ascertained, initial estimates put the extent of misuse at over Rs 200 crore which is believed to have been carried out over the past few years.
Vivek Nagpal could not be contacted by Business Standard for comment.
Padmini Polymers is one of the leading producers of polyethylene terepthalate (PET) chips in the country.
The company achieved a turnover of Rs 383 crore in fiscal 1996. It has three manufacturing plants, two of which are located in Sahibabad, near Delhi, and the third in Silvassa.
Besides manufacturing PET chips, the company has diversified into compact discs, cassettes and plastic containers. Containers manufactured by Padmini Polymers are used by Dabur Chyavanprash, Gopal Zarda and Amrit Vanaspati, among others.
