Deep Inds in deep trouble

Deep Industries has hit a three year low today at Rs.107.20 and remains firmly entrenched in the red.

This is another company coming into the dark shadow of a scam. The Central Bureau of Investigation has booked 13 senior serving and retired officials of ONGC for alleged irregularities in giving a contract to Deep Industries for supplying gas dehyrdation units for its Rajahmundry plant in Andhra Pradesh.

The allegation is that ONGC executives abused their official position in giving a contract worth Rs 312 crore to Deep Industries by overlooking the guidelines of the public sector undertaking as the company was ineligible due to technical deficiencies.

Deep Industries has filed writ petitions with the High Court in Hyderabad.