Ruia Group chairman taken into police custody

Numerous media outlets in India have reported the arrest of Pawan Ruia, chairman of the Ruia Group of companies, whose assets include in-liquidation tyre maker Dunlop India Ltd. Ruia was arrested on Friday in response to a complaint of cheating and criminal breach of trust filed against him by Indian Railways. He is currently in the custody of West Bengal Police’s Criminal Investigation Department.

West Bengal Police CID apparently began investigating Ruia Group firm Jessop & Company Ltd. after Indian Railways complained that the company had taken Rs 500 million (£5.9 million) worth of components and raw materials, but hadn’t honoured its contractual commitments to supply electric multiple unit railway carriages. Production at the Jessop factory in Dum Dum, Kolkota was suspended in May 2014, and Livemint writes that company workers have long alleged that the Ruia-led management of Jessop stole assets from the closed factory.

According to The Times of India, further charges against Ruia, including charges related to intent to destroy a property by fire and causing evidence to disappear, were added to the original charges yesterday. Livemint states that Ruia will remain in the custody of West Bengal Police CID until 25 December.

Livemint further notes that the Ruia Group denies the allegations, adding that Pawan Ruia’s lawyer stated in court yesterday that Ruia, whose group purchased Jessop in 2003, had stepped down from the company’s board years ago and he was no longer a company shareholder.