The police on Friday filed a case against proprietor and officials of KL Dugar Group in the Kathmandu District Court on charge of black marketing of edible oil.

Kishanlal Dugar, the group’s proprietor; his son Naresh Dugar; Aman Jain, manager of the group’s Jadibuti-based warehouse; and PR officer Pramod Adhikari have been made defendants in the case, according to Superintendent of Police (SP) Bishwo Raj Pokharel, spokesperson for the Metropolitan Police Range, Teku.

Jain and Adhikari were arrested on Thursday during a police raid at the warehouse, while the police are on the lookout for other defendants.

“On charge of black marketing, we have filed the case against these four persons,” said Pokharel, adding the court has ordered the arrest of the defendants within three days.

The Police had seized five trucks of edible oil during Thursday’s raid. According to the police, keeping such a big amount of the products in the warehouse at a time when the markets inside Kathmandu are facing shortage of cooking oil, in itself is suspicious.

If found guilty, they would have to face imprisonment for a term not exceeding five years or with a fine or with both, as per the Black-marketing and Some Other Social Offenses and Punishment Act 1975.

The group’s subsidiary Swastik Oil Industries Pvt Ltd sells edible oil under brands including Dhara, Swastik and Sunflow.

It has been accused of hiking the prices of the products artificially taking undue advantage of India’s trade blockade on Nepal.

The Sunflow sunflower oil, which cost Rs135 per litre two months ago, now comes with a price tag of Rs295 per litre. The company has claimed that it was compelled to raise the prices due to increased price of raw materials and higher shipment charges.

Last week, the Department of Commerce and Supply Management had sought clarification from KL Dugar Group on charge of overcharging customers.