Police on Monday filed a case of fraud and black marketeering against top officials of KL Dugar Group including its Chairman KL Dugar and Managing Director Kumud Dugar seeking 10 years jail and compensation worth Rs140 million.

The case was filed at the Kathmandu District Court based on the findings of a raid at the group’s warehouse in Jadibuti, Kathmandu, and investigations that revealed that the group had been selling edible oil at prices three times the normal.

Senior Superintendent of Police Bikarm Thapa, chief of the Metropolitan Police Range, Teku, said cases were filed also against Naresh Dugar and Bikash Dugar and Aman Jain, manager of the company, and Pramod Adhikari, the sales manager. Thapa said the group had been charging up to Rs320 for a litre of oil with the original price tag of Rs130. The group, according to police, had been taking an undue advantage of the blockade that has created a shortage of essential goods.

Police had arrested Jain and Adhikari on December 3 while the rest are absconding and are believed to be in India. The District Court had remanded Jain and Adhikari in custody for investigation.

Following complaints that the company had been hoarding products and artificially hiking the prices, a team from the Police Range had taken control of two trucks each of Dhara and Gyan brand oil and a truck of Sunflow brand oil.