Welspun Group faces inquiry in 2005 godown fire

Bhuj, July 30 (UNI) A complaint has been filed by Anjar police against the Welspun Group of companies for fraudulently claiming insurance worth Rs 34 crore for a fire that broke out in 2005.

A major fire had broken out in the godown of the Welspun Group, well known manufacturer of terry towels and saw pipes, on December 8, 2005, which raged for two days. The company had claimed that cotton worth Rs 29 crore was destroyed, apart from the godown worth Rs 5 crore. The company had then filed an insurance claim to the tune of Rs 34 crore.

According to the complainant PSI D T Sodha of Anjar police, the fire had broken out on the night of December 8, 2005, in which huge stocks of cotton were destroyed. Since the origin of fire sounded mysterious DSP Nanendra Mallick of Kutch police had taken samples from the burnt godown and sent them to forensic science laboratory (FSL) at Junagadh. The FSL report stated that an inflammable ingredient was detected in the cotton stock, which suggested foul play. When the police asked the lab to re-confirm its findings, it stuck to its findings, he said.

Mr Sodha said no name of the persons on the company board still figure in the complaint, but they would investigate the case before charging anyone.

UNI