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CBI to revive the NTC bid for closed mills in Maharashtra

Central Bureau of Investigation (CBI) has started investigation on National Textile Corporation (NTC) to revive several of their prime properties. As per CBI land worth Rs 20,000 crore was diverted for non-textile activities against the original plan.

The investigation is based on the NTC board decision of 2007 to enter into joint ventures with private players to revive closed mills in Mumbai and Aurangabad with NTC share of 51% and 49% of the private players.

As per the originally plan, land was to be leased for 33 years with all investment by the private players. But in reality the lease was extended for 99 years.

Each investor invested around 100 crore as their value of equity and their investment contribution. However, investigation showed that there was no work done in the mills for textile production.

As per CBI, major business houses were involved in this (Mumbai based Apollo mills, Gold Mohar mills, India United mills no 1 and New City malls along with Aurangabad mills).

CBI is investigating former MD of NTC Mr Ramchandran Pillai and New Jack Printing Press.

CBI suspects that – Mr Pillai have favoured the company by transferring the ownership rights of the plot in Parel which was owned by NTC.

While, New Jack Printing Press has defaulted for the payment of rent for total 90 crore for the plot issued to them.

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