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MMTC gold imports under cloud, probe mooted

Pointing out 'serious irregularities' in import of gold by Minerals and Metals Trading Corporation from a Swiss bank during 1988-97, a parliamentary committee has recommended a probe by Chief Vigilance Commissioner and CBI into the issue.

Some of the alleged irregularities requiring probe are overlooking an offer from Bank of Nova Scotia, involvement of an unsolicited intermediary Inter Gold (India) and selection of Union Bank of Switzerland for gold supply even without invitation to participate in the bid, the Committee on Public Undertakings said in its sixth report.

It said as early as 1985 commerce ministry did not process a proposal from MMTC to enter into an agreement with Bank of Nova Scotia for gold supply saying it was too early to merit any consideration as gold import schemes started only in June, 1988.

But then on the same count, offers invited in 1986 from five foreign banks were also premature to merit any consideration, CPU said.

It further pointed out special favours were shown to another supplier who came into the scene through an unsolicited intermediary, Inter Gold (India) where Amarnath, a senior group general manager of MMTC was a director.

The committee recommended a CBI enquiry into the matter, feeling there was a "premeditated deliberate design" in it.

The CPU said despite offer not being made to UBS, it sent its offer uninvited on the initiative of Dubai-based Shattaf Trading Company four days after receipt of other offers. It said Shattaf had no formal business ties with MMTC and its involvement in the deal was unusual.

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