CEO of Hong Kong firm alleges ₹15-crore cargo fraud

A major cargo fraud, involving nearly ₹15 crore, came to light at a Container Freight Station (CFS) in Vallur near Kattupalli Port, after B. Subramanyan, 62, Chief Executive Officer (CEO) of Hong Kong-based Cosmoss Vu Limited, an export-import firm, lodged a complaint with the Avadi City Police.

According to the complaint, the company had shipped 90 containers of PVC resin, through three carriers, from Tianjin Xingang and Qingdao ports in China to Kattupalli Port in Chennai. The consignments, imported by Rishabh Triexim LLP and Kanchan Polymers, were moved to the CFS operated by SICAL Multimodal and Rail Transport Limited.

As per trade practice, the carriers issued bills of lading in favour of the shipper. They serve as documents of title for the goods, and are required to be produced by the importer to secure their release.

The complainant said that the importers had not made the payment for the shipments. Consequently, the original bills of lading remained in his lawful possession, preventing legal delivery of the goods to the importers.

However, Mr. Subramanyan alleged, the SICAL CFSunlawfully released the consignments to the importers without the original bills of lading or valid Delivery Orders.

Larger conspiracy

The CEO alleged that his subsequent inquiries revealed a larger conspiracy involving 21 individuals, including representatives of the import firms, shipping companies, and officials of the CFS. He said they acted with a common intention — dishonestly releasing and diverting the consignments, thereby causing a wrongful loss to his company and gain to themselves.

“The accused hatched a criminal conspiracy, and looted goods valued at approximately ₹15 crore. The unlawful proceeds were shared among them,” the complainant said.

Based on the complaint, the Avadi City Police registered a case for cheating and criminal breach of trust. The case has been taken up for further investigation.