Jessop chief Pawan Ruia in DRI net

Noted industrialist Pawan K Ruia, who had bought public sector engineering giant Jessop through National Democratic Alliance's divestment scheme, has been charged by the Directorate of Revenue Intelligence of claiming benefit on "fake exports" amounting to over Rs 80 crore (Rs 800 million).

Confirming the development, Sanjib Sachdeva, ADG, DRI, said that Ruia was arrested on May 30 from his residence under the Customs Act and produced before Acting Chief

Metropolitan Magistrate, who granted him interim bail till June 13 when the case would come up for hearing.

Ruia has been charged with claiming duty drawback and other export benefits by showing exports to the tune of Rs 80 to 85 crore (Rs 800-850 million) through "fake documents", he said.

"In fact, no export took place for which Ruia claimed benefits," he said.

Ruia has been granted conditional bail with a directive not to leave the jurisdiction of the court and report to the DRI office whenever required, Sachdeva said.

When contacted for comment, a spokesman of Ruia said that he had been framed in the case by rivals and that he would move the court against DRI very soon.

He also said that Ruia had nothing to do with the company against which the charges have been brought by DRI. He alleged that it was a three-year-old case, which has been raked up now.

Ruia had come to the limelight after he bought 72 per cent share of the ailing Jessop Engineers for Rs 18.18 crore (Rs 181.8 million) in 2002 under NDA's divestment scheme amidst protest by Left parties and also employees of the engineering giant.

The employees have already moved Supreme Court to challenge the divestment.

Jessop, however, has turned around under Ruia and has reported profit in 2004-05 and has been planning to expand its business.