Aizawl: A Special Court (Prevention of Corruption) in Mizoram has sentenced four businessmen to two years’ imprisonment and imposed a fine of ₹1.50 lakh each in the high-profile ₹10.34 crore alleged subsidy fraud case linked to Mizo Carbon Products Limited. The court, however, acquitted 13 other accused, most of them government employees, after finding that the prosecution failed to establish their guilt beyond reasonable doubt. The case relates to the alleged fraudulent procurement of central government subsidies through fabricated transportation and manufacturing claims.
Special Judge F. Rohlupuia delivered the conviction order on Thursday, following which the sentences were pronounced on Friday. Those convicted are Ravi Gulgulia of Guwahati, Sandeep Agarwal of Guwahati, Vimal Kishore of Silchar in Assam’s Cachar district, and Pramod Bharech of Kolkata, West Bengal. They were found guilty under Sections 120B (criminal conspiracy), 420 (cheating), and 471 (using forged documents as genuine) of the Indian Penal Code.
In its judgment, the court observed that the prosecution failed to prove the charges against the remaining 13 accused beyond reasonable doubt. Consequently, all of them were acquitted. The court reiterated that criminal convictions require credible and sufficient evidence, which was not available in respect of those accused.
The case originated from a Public Interest Litigation (PIL) filed before the Gauhati High Court in 2017 by anti-corruption activist Vanramchhuangi, popularly known as Ruatfela Nu. The petition alleged that Mizo Carbon Products Limited had fraudulently sought to obtain ₹10.34 crore under the Central Transport Subsidy (CTS) scheme despite failing to transport and utilise the required quantity of raw coal needed to qualify for the subsidy.
According to the investigation, the company claimed to manufacture Low Ash Metallurgical Coke (LAMC), hard coke, coke breeze, and related products at its facility located in the Industrial Growth Centre at Luangmual, Aizawl. It also claimed that raw coal was imported from outside Mizoram for manufacturing purposes. However, investigators found no reliable evidence supporting these claims.
The investigation was initially conducted by the Mizoram Anti-Corruption Bureau (ACB). Subsequently, under directions issued pursuant to the Delhi Special Police Establishment (DSPE) Act, 1946, the probe was transferred to the Central Bureau of Investigation (CBI) on October 17, 2017. The CBI concluded that the company had misrepresented the import of raw coal and the scale of coke production. According to the agency, the company neither imported the quantity of coal claimed nor manufactured the volume of products shown in its subsidy applications.
The CBI further alleged that the company fraudulently obtained more than ₹3.41 crore under the Central Transport Subsidy (CTS) and Central Capital Investment Subsidy (CCIS) schemes by relying on forged documentation. Investigators stated that fabricated records relating to manufacturing equipment and the transportation of raw coal were used to support the subsidy applications.
One of the most significant findings during the investigation involved an allegedly fabricated transportation record. The CBI found documents claiming that a single truck travelled approximately 312 kilometres between Khlehriat in Meghalaya and Luangmual in Aizawl eight times in a single day. Investigators described the claim as practically impossible and cited it as strong evidence indicating that the transportation records had been falsified. With the court’s verdict now delivered, the case has once again highlighted concerns over alleged fraud in government subsidy schemes and the importance of stringent verification mechanisms in public fund disbursement.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
