The FIR, filed in a Delhi court, has charged D.N.Gupta (the then Delhi Branch Manager), V.S.Jaggi (the then North Zone Regional Manager), A.K.Rastogi (Assistant Accounts Officer, Delhi Branch), Sushil Kumar (Chief Executive Officer, DSCMSF) and Rajeshwar Kumar Bansal and Pradeep Kumar Bansal of the M/s M.N.R. Trading Company under section 120 (b) (criminal conspiracy) of the Indian Penal Code.

The APO had reportedly placed an order for animal feed to NAFED. According to the FIR, NAFED entrusted the stock to the Delhi State Co-operative Marketing and Supply Federation (DSCMSF). Service charges of Rs 100 per quintal were to be paid for services rendered by them which included transportation, loading and payment of freight charges. The federation was to ensure 75 per cent of payment from the APO within five days of delivery.Under the contract, the entire operation was to be completed within the prescribed schedule, latest by July 15, 1996. But during the stipulated period irregularities were found in the supply of barley and gram-hole, which resulted in the fraudulent payment of around Rs 2 crore by NAFED.

The DSCMSF also reportedly released payments to the trading company. The FIR charges that bogus bills were arranged from the transporter without the actual dispatch of the stock. NAFED lost the said amount towards payment to DSCMSF without the consignment ever reaching the APO.