CBI arrests four in Rs 4,000-crore CGHS scam

The arrests relate to the fraudulent revival of Aanchal CGHS, and those arrested include Diwakar, already in judicial custody.

The CBI on Tuesday arrested four persons, including former Registrar of Co-operatives Societies Narayan Diwakar, in connection with the Rs 4,000-crore Co-operative Group Housing Society (CGHS) scam in New Delhi on Tuesday.

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The arrests relate to the fraudulent revival of Aanchal CGHS, and those arrested include Diwakar, already in judicial custody for his involvement in the scam, his personal secretary Sanjeev Bharati, an upper division clerk in RCS office Raman Verma, CBI sources said in New Delhi on Tuesday.

The fourth person arrested by the CBI is property dealer Dharam Singh Rawat, sources said.

This case was registered on January 3, 2006 on the allegation that the Aanchal CGHS limited, which was earlier wound up by the RCS office on December 15, 1989, was revived by Diwakar on February 14, 2003 on the basis of forged documents.

The probe revealed that the entire records pertaining to the society -- membership register, proceeding register, resignation letters and affidavits -- on the basis of which the society was revived were fake and forged.

The multi-crore scam relates to the fraudulent revival of housing societies across the capital allegedly by officers of the Registrar of Cooperative Societies (RCS) in connivance with builders and other private persons.

CBI alleges that the builder mafia, in criminal conspiracy with the RCS, exploited provisions of Delhi Co-operative Societies Act, which allows for the revival of wound-up societies.