Professional Documents
Culture Documents
In the case of M/s Soundcraft Industries Ltd. it was found that the
Managing Director, Mr. Rajkumar C. Vasantani collected huge amount of
funds through public deposits for their business of export of finished
diamonds by availing various export incentives. Loans were also taken
from various banks from various banks for the import of raw diamond
which was to be exported after cutting and finishing. Diamonds were
exported on Letter of Credits (LCs) and just after exports Shri Vasantani
used to encash these LCs under Export Credit Guarantee Scheme. The
proceeds of these exports were to be realized within one year of such
exports. These exports were generally made through some fictitious
parties abroad and export proceeds were not realized, although a large
amount of money was already collected by Shri Vasantani by discounting
the LCs. Thus after collecting the huge amount of money and making
default in payment of bank loans as well as public deposits Shri Vasantani
flew the country and his last whereabouts were traced to United States.
In absence of any provisions for bringing back the accused no further
action could be initiated other than filing complaint in the Companies
Act.