CBI begins corruption probe against serving, ex-officials of public sector firm
The case, which also implicates a Mumbai firm, its chief executive officer, and unknown others, involves allegations of corruption and misconduct
Mumbai: The Central Bureau of Investigation's Mumbai unit has registered a case against four serving and former officials, including a former chairman and managing director of the central public-sector enterprise, Broadcast Engineering Consultants India Limited (BECIL). The case, which also implicates a Mumbai firm, its chief executive officer, and unknown others, involves allegations of corruption and misconduct.
The CBI conducted searches at the premises of the accused as part of its investigation into alleged irregularities associated with BECIL's agreement with the accused firm for the execution of a Pune civic waste management project. The project was funded by a loan of ₹50 crore.
According to the CBI's First Information Report (FIR), a bank guarantee worth ₹25 crore, which the firm was required to produce as part of the agreement with BECIL, was allegedly found to be forged. The FIR also states that the original file containing crucial project documents has gone missing from BECIL's Delhi office.
The case was registered on 3 September based on a complaint from a CBI officer who had previously conducted a Preliminary Enquiry (PE) investigation into the alleged irregularities. The PE probe was initiated over two months ago following a complaint from a senior officer of the Union Ministry of Information and Broadcasting against unknown public servants of BECIL and unknown private persons of the firm, The Green Billions Limited (TGBL).
The PE's findings, which form part of the FIR, reveal that the Indian Renewable Energy Development Agency Limited (IREDA) had allegedly sanctioned a loan of ₹80 crore to BECIL for the execution of various projects, including waste management and smart lighting initiatives. BECIL subsequently executed an agreement with the accused firm for the Pune municipal solid waste management works contract.
Out of the ₹80 crore loan sanctioned by IREDA, BECIL allegedly provided a loan of ₹50 crore to the accused firm for the Pune project, disbursed in three instalments. The terms of the agreement required the accused firm to provide a "performance bank guarantee of ₹25 crore, an indemnity bond, blank dated cheques totalling ₹45 crore, consent for hypothecation of plant and machinery and lease deed for the land," as stated in the FIR.
The bank guarantee, purportedly issued by PNB Bank's Ghatkopar East branch in Mumbai, was found to be forged during the inquiry. "The said Bank Guarantee, created in Mumbai, was found to be forged in nature," the FIR alleged.
The CBI has registered the case under sections of the Indian Penal Code and the Prevention of Corruption Act against BECIL's former CMD G Kuruvilla, its GM (P-1) WB Prasad, its then legal advisor AP Singh, its then consultant S Chauhan, TGBL, TGBL's P Kanakia, and unknown others.
The investigation agency obtained approval from the Competent Authority under section 17-A of the Prevention of Corruption Act before registering the case against Kuruvilla, Prasad, and Singh. This section mandates prior government approval for any enquiry or investigation against a public servant in cases related to official decisions.