CBI recovers confidential ministry documents but ‘rot may be deeper’

A day after it arrested a Mumbai-based chartered accountant and two government officials for allegedly leaking and selling confidential documents related to foreign investments from the Finance and Commerce and Industry ministries, the CBI Friday raided a law firm and a CA firm in Mumbai and allegedly recovered documents leaked from the two ministries.

On Friday night, the CBI arrested Ramniwas, an assistant in the Foreign Investment Promotion Board section of the Finance Ministry for allegedly leaking FIPB documents. The CBI also arrested Paresh Chamanlal Budhadev, a partner in Chitale and Associates, for destruction of evidence. He was allegedly trying to destroy documents, but some have been recovered, a CBI spokesperson said.

“CBI is conducting further searches at two locations in Mumbai — Chitale and Associates law firm and the office of CA Mitesh J Majithia. Copies of government files and notings have been recovered,” a CBI spokesperson said.

CBI sources said the government documents found during Friday’s raids were “mostly pertaining to foreign investment”. The two firms cropped up during the interrogation of the CA arrested a day earlier, sources said. The CBI has flown down a senior officer from New Delhi to supervise the probe in Mumbai.

CBI officers said they would soon arrest Daljeet Singh, an upper division clerk in the department of industrial policy and promotion, who allegedly connived with the two government officials arrested. Daljeet’s office was one of the locations raided Thursday.

“It appears that the first and second level of decision-making in the ministries could have been compromised. Indications are that in these critical ministries, the rot is much deeper and systemic. It is likely more government officers are involved. Names of other firms and consultants could also crop up,” a CBI source said.

Around a dozen corporate houses are under scanner, sources said. “By getting the documents, beneficiary corporate houses got advantage by being privy to information on government policies before competitors,” a source said.

On Thursday, the CBI had arrested Mumbai-based CA-cum-consultant Khemchand Gandhi, Lalaram Sharma, a section officer in the department of economic affairs, and Ashok Kumar Singh, an under secretary in the department of disinvestment. CBI said government documents were allegedly sold by Singh and Sharma to Gandhi, who passed them on to corporate houses.

CBI officers said they had scrutinised two e-mail accounts allegedly used by Singh to send classified information to Gandhi. “Some incriminating receipts have been recovered from the two government officials. Preliminary investigations indicate the documents may not have been sold at a very high premium. However, the racket has been on for over two years,” said a CBI officer.

Meanwhile, Special CBI Judge Friday remanded Singh and Sharma to CBI custody till March 17. In Mumbai, a special CBI judge rejected Gandhi’s bail application. “When issue of national integrity is involved it is desirable for every citizen to give priority to security of the nation,” the special judge observed.

CBI told the special court that custody of Singh and Sharma was required to unearth the larger conspiracy. The CBI also informed the court that Gandhi was being brought to Delhi on a transit remand to confront him with the two officials.

According to CBI sources, the corporate houses under scanner include DLF Limitless Developers Pvt Ltd, HDFC Bank, Glenmark Pharmaceuticals Ltd, Modril India, Prime Living, NovaLead Pharma, IndusInd Bank and Kakardi British Realty.

HDFC Bank issued a statement Friday that read, “We categorically deny having known or heard of, let alone interacted with, the individual named in these news reports. Any suggestion that we may have indulged in any wrongdoing is completely baseless and untrue. These allegations… are defamatory and an attempt to malign the reputation of HDFC Bank.”

IndusInd Bank stated: “We strongly deny that this episode has anything to do with IndusInd Bank.”

When contacted, Glenmark Pharmaceuticals Ltd did not comment on the issue.

Modril India, Prime Living, NovaLead Pharma and Kakardi British Realty could not be reached for their comments. In a statement issued Thursday, DLF had denied any link stating it had absolutely no dealings with Gandhi and had never been in touch with him.

(With ENS Mumbai)

Source:: Indian Express