Two from city among five arrested by CBI for duping RLDA of ₹31.50 crore

CBI arrests 5 people, including 2 from Mumbai, in a case where the Rail Land Development Authority was cheated of ₹31.50 crore through diversion to shell companies. Searches conducted at 12 locations, documents seized. CBI investigating bank officials, RLDA officials, and private persons involved.

The Central Bureau of Investigation (CBI) recently arrested five people, including two from Mumbai, as part of its probe in a case where the Rail Land Develpment Authority (RLDA) was cheated of ₹31.50 crore.

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The agency also carried out searches at 12 locations in Mumbai, Goa, Delhi and Himachal Pradesh and seized documents whose evidentiary value is being assessed, CBI sources said.

RLDA, a statutory body under the ministry of railways, filed a complaint last October alleging that it had invested ₹35 crore in fixed deposit for a year with Bank of Baroda, Delhi, and the maturity proceeds were supposed to be reinvested for three months. The bank, however, allegedly invested only ₹3.50 crore and the remaining ₹31.50 crore was allegedly diverted to shell companies located in Mumbai, a source said. “Only the maturity amount of ₹3.50 crore was reinvested for three months.”

The complaint claimed that the crime was executed by bank officials in connivance with RLDA officials, public servants and private persons based in Mumbai, Delhi and other locations.

A few shell firms in Mumbai are under the agency’s scanner, sources said.

On October 4, 2022, the CBI registered a case under section 120B (criminal conspiracy), 420 (cheating), 468 (forgery for purpose of cheating), and 471 (using as genuine a forged document) of the Indian Penal Code and section 13 (2) read with 13 (1) (a) (criminal misconduct by unknown public servants) of the Prevention of Corruption Act.

The agency arrested Mumbai-based Hitesh Karelia and Nilesh Bhatt, RLDA’s former manager Vivek Kumar, bank’s former branch head Jaswant Rai, and Gopal Thakur in Delhi.