India to seek extradition of Indian businessman from U.K.

by Sumir Kaul

New Delhi, Jun 18 (PTI) After the U.S., India is all set
to approach Britain to seek extradition of Virender, one of
the four Rastogi brothers, who is serving sentence there for
defrauding banks to the tune of several million dollars.

Central Bureau of Investigation sources said the agency
was approaching the authorities in Britain through the
External Affairs Ministry requesting for suspension of
Virender's sentence and subsequent extradition to India to
face trial.

Virender was recently sentenced by a Southwark Crown
Court in London for conspiracy to defraud bank to the tune of
several million dollars. The accused conned banks into funding
non-existent metal trading deals using 324 fake companies that
turned out to be housed in small flats and shops.

He had figured in the 'Sunday Times' rich list before he
was punished to undergo a nine years and six months sentence.

India was, meanwhile, awaiting a word from the U.S. to
get another Rastogi brother, Narinder extradited. He along
with his brothers including Virender has been accused by the
C.B.I. of defrauding the exchequer to the tune of Rs 430
million while exporting scrap to Commonwealth of Independent
States countries.

The F.B.I. had arrested Narinder and three others in May
2002 for defrauding banks around the world of an estimated 600
million dollars by obtaining finance for sham transactions and
then pledging them as collaterals for loans.

According to the C.B.I., Rastogi brothers, as directors
of five firms exported bicycle parts during 1995-96 to Russia
and Hong Kong by heavily over-invoicing the value of goods
with the objective of dishonestly claiming excess duty
drawback from customs.

The C.B.I. alleged that the five companies had conspired
to cheat the government and "knowingly over invoiced the value
of export goods by nearly 15 to 20 times."

The case came to light after the Custom department in
Mumbai initiated a departmental enquiry against 18 of its
officials for passing the consignment of -- Allied Deals
without any verification.

The Custom department had referred the matter of
departmental action to Central Vigilance Commission, which in
turn asked the C.B.I. to probe the matter which alleged that
the Rastogi brothers sought duty drawback on their export
consignments to Hong Kong and other C.I.S. (Confederation of
Independent States) countries.

The C.B.I. alleged that the brothers used to export
scrap material but claimed duty drawback on cycle spare parts.

About Narinder, the U.S. Federal agency had also sent a
request to the C.B.I. to give details about the frauds
committed by him in India before he fled to the U.S.

When he was about to be extradited to India, the accused
pleaded guilty before a New Jersey court which sentenced him
to imprisonment till June 2008.

The C.B.I. team led by the then Joint Director Neeraj
Kumar, at present Special Commissioner in Delhi Police, had
conducted an investigation into the case and collected
evidence before chargesheeting them in the case. The C.B.I.
had then also managed to arrest Subash Rastogi and get
extradited another brother Ravinder from Dubai. PTI