Estimated financial impact can't be ascertained: GAIL on director's arrest by CBI

GAIL India Ltd on Sunday said that its director (marketing) E S Ranganathan has been arrested by the Central Bureau of Investigation(CBI) as per media reports, and the company cannot ascertain the financial impact of it at this stage.

In an exchange filing, the public sector undertaking (PSU) said, "...Central Bureau of Investigation has registered a FIR against Shri E S Ranganathan, Director (Marketing) of the Company and other private persons on charges of criminal conspiracy, demand and obtaining undue advantage by public servant, taking undue advantage to influence public servant, bribing public servant etc. (Source: CBI website)."

It also said that as per media reports, Ranganathan has been arrested in the said case, but the company is not aware of any information other than those published or reported.

"At this stage no estimated financial impact or estimated amount can be ascertained," GAIL added.

The CBI arrested Ranganathan and five other individuals in a case of alleged bribery of over Rs 50 lakh for giving discounts to private companies buying petro chemical products marketed by the Maharatna PSU, news agency PTI reported citing sources.

The CBI had unearthed the alleged bribery scam involving Ranganathan, middlemen, and businessmen and arrested five individuals on Saturday. Following this, it had conducted searches at eight locations, including the office and residence of Ranganathan, it said.

The government owns 51.80 per cent stake in GAIL. Shares of the company closed 0.55 per cent lower at Rs 144.15 on the BSE on Friday.

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