This stock tanked 20% on alleged Rs 80 crore scam linked to ONGC

Deep Industries slumped 20 per cent on Monday to hit its lower circuit after the company said the Central Bureau of Investigation (CBI) has registered a case against itself and 13 officials of Oil and Natural Gas Corp. The entity that filed the complaint was ONGC’s vigilance department. Deep Industries tanked 20 per cent to Rs 107.15, while ONGC slipped 1 per cent to Rs 170.75 on the BSE.

The CBI booked 13 senior serving and retired officials of the ONGC for alleged irregularities in giving a contract to Deep Industries for supplying gas dehydration units for its Rajahmundry plant in Andhra Pradesh, causing a loss to the tune of Rs 80 crore.

Those named in the FIR in connection with the alleged scam in 2014 include former executive director D G Sanyal, then director (Onshore) Ashok Verma and ex-DGM (Production) Arup Ratan Das.

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"They have been accused of abusing their official position in giving a contract worth Rs 312 crore to Deep Industries, an accused in the case, for supplying the gas dehydration units (GDUs), causing a loss of Rs 80 crores to ONGC," the Central Bureau of Investigation said.

The officials had awarded the contract to Deep Industries by overlooking the guidelines of the public sector undertaking and the fact that the company was ineligible due to technical deficiencies, the agency added.