CBI arrests two for renting Govt flats to fake employees | india | Hindustan Times
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CBI arrests two for renting Govt flats to fake employees

Unearthing a fraud of illegal allocation of government flats in Mumbai, the CBI has arrested two persons including an estate manager for their alleged involvement in the renting of the properties to non-government employees and even to fictitious persons.

india Updated: Feb 16, 2009 23:40 IST

Unearthing a fraud of illegal allocation of government flats in Mumbai, the CBI has arrested two persons including an estate manager for their alleged involvement in the renting of the properties to non-government employees and even to fictitious persons.

The two officials -- acting Estate Manager Madan Mohan Banerji and his assistant Chengan Prakash Raman -- were arrested on Saturday for their alleged involvement in illegal allocation of over 100 flats to employees who were not government officials, CBI Joint Director (West) Rishiraj Singh said. The two accused were remanded to the CBI custody till February 18.

According to the CBI, the duo, in connivance with certain estate agents, allegedly rented out houses meant for central government employees at places like Antop Hill and Wadala in central Mumbai, Ghatkopar in north-east Mumbai and Belapur in Navi Mumbai.

The CBI has found at least 100 apartments, out of total existing 8,500 government quarter, have been illegally allocated but the number could increase to between 400 to 500, he said.

“In some cases the accused generated fake applications for non-existent persons and allocate the houses,” Singh said, adding, after obtaining the houses the accused would then sublet the houses to people through agents who would do it on a commission of two months of rent while the remaining 10 months was pocketed by the two.