CBI arrests mining firm CMD on fraud charge

A team of CBI sleuths from Delhi accompanied by local police arrested CMD of Zenith Mining Pvt Ltd, Syed Nizam Ahemad, from a place on the outskirts of the state capital.

Nizam, whose car and a revolver were seized, was produced before the CBI court here which allowed the agency to take him to Delhi on three-day transit remand.

The businessman was accused of defrauding National Agricultural Cooperative Marketing Federation of India (Nafed) of Rs 67 crore after taking a loan of Rs 90.22 crore.

Though Nizam repaid Rs 30.47 crore, he did not repay the rest of the amount and interest, said CBI DSP P Singh who led the team. Nafed had lodged a complaint with CBI`s Economic Offence Wing against him last year.

Nizam`s firm which operated a small iron ore mines in Sundergarh district, had taken loan from the Nafed for undertaking iron ore export.