Advocate Prashant Bhushan, appearing for NGO Common Cause, alleged that the government is delaying the meeting of the selection committee as it wants to bypass the present Chief Justice of India.
Tag: CBI
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Param Bir vs Anil Deshmukh: Setback for Maharashtra Home Minister as HC asks CBI to probe former Mumbai top cop’s allegations
By PTI
MUMBAI: The Bombay High Court on Monday directed the CBI to conduct a preliminary inquiry within 15 days into allegations of corruption and misconduct levelled by former Mumbai police commissioner Param Bir Singh against Maharashtra Home Minister Anil Deshmukh.A bench of Chief Justice Dipankar Datta and Justice G S Kulkarni said this was an “extraordinary” and “unprecedented” case that warranted an independent inquiry.
The court said since the state government had already ordered for a probe by a high-level committee into the matter, the Central Bureau of Investigation (CBI) need not immediately register an FIR in the case.
It said the CBI must complete the preliminary inquiry within 15 days and then take a decision on further course of action in the case.
The bench delivered its verdict on a bunch of public interest litigations (PILs) and writ petitions seeking several reliefs and a CBI probe into the matter.
The pleas had been filed by Singh himself, city-based lawyers Jayshree Patil and Ghanshyam Upadhyay, and local teacher Mohan Bhide.
The HC disposed of all the pleas on Monday.
“The CBI’s director is allowed to conduct a preliminary inquiry. Such preliminary inquiry be ordered in accordance with the law and be concluded within 15 days. Once the preliminary inquiry is complete, director CBI (will) be at discretion to (decide on) further course of action,” the high court said.
The HC had last Wednesday reserved its verdict on the pleas following a day-long hearing.
“We agree that this is an unprecedented case before the court. Deshmukh is Home Minister who leads the police. There has to be an independent inquiry. But, the CBI need not register an FIR immediately,” the court said on Monday.
On March 25, Singh filed a criminal public interest litigation seeking a CBI probe against Deshmukh who, he claimed, had asked police officers, including suspended cop Sachin Waze, to extort Rs 100 crore from bars and restaurants.
The remaining PILs were filed around the same time.
The minister has denied any wrongdoing.
Singh’s counsel Vikram Nankani had argued that the entire police force was demoralised and was working under pressure due to the interference of politicians.
The HC had then asked why Singh did not lodge an FIR against Deshmukh, if he was aware of the alleged wrongdoing committed by the minister.
Patil, one of the other petitioners, had told the HC that she lodged a complaint against both Deshmukh and Singh at a local police station.
Advocate General Ashutosh Kumbhakoni, who appeared for the state government, had urged the HC to dismiss the pleas.
Singh had initially approached the Supreme Court, alleging he was transferred from the post of Mumbai police commissioner after he complained to Chief Minister Uddhav Thackeray and other senior leaders about the “corrupt malpractices” of Deshmukh.
The apex court had termed the matter as quite serious, but asked Singh to approach the high court.
Singh then filed the PIL in the HC, reiterating his allegations against Deshmukh and seeking an “immediate, unbiased, impartial” probe by the CBI against Deshmukh, who is an NCP leader.
The Shiv Sena, NCP and Congress share power in Maharashtra.
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CBI interrogates Lala for the second time
By PTI
KOLKATA: The CBI on Saturday interrogated the alleged coal scam kingpin Anup Majhi alias Lala for the second time and asked him to appear before it again on Monday, sources in the investigating agency said.The probe body interrogated Lala for more than 10 hours, the sources said.
The CBI also interrogated former superintendent of police of Purulia district, D Murugan in connection with the scam.
Majhi, against whom CBI had issued a look-out circular as he was absconding, appeared before the CBI at its Nizam Palace office this morning.
He was questioned for the first time on Tuesday.
CBI had also raided Lala’s official premises, residences and other properties at Asansol, Ranigunj and in Kolkata.
The investigation agency is of the view that the coal scam, arising out of illegal mining in abandoned mines of Eastern Coalfields, runs into thousands of crores and rupees and part of the crime proceeds had been transacted through the hawala route for which the Enforcement Directorate has also joined the probe.
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Bank-loan default case: CBI books director, CEO of Golden Jubilee Hotels
By PTI
NEW DELHI: The CBI has booked Arjun Singh Oberoi, director, Golden Jubilee Hotels, along with its CEO and managing director Laxmi Narayan Sharma, in connection with alleged cheating in a loan default of over Rs 1,285 crore in a consortium of seven banks led by the Bank of Baroda, officials said on Thursday.The agency has also carried out searches at three locations in Hyderabad and Delhi, including the residence of Oberoi, in connection with the case, they added.
Oberoi is also the managing director of EIH Limited, which, according to its website, runs hotel chains Oberoi, Trident and Maidens.
“The FIR has just been brought to our attention and we are examining the contents,” a spokesperson of the Oberoi group said in a statement.
Besides Oberoi and Laxmi Narayan Sharma, the Central Bureau of Investigation (CBI) has also named Neha Gambhir and Yashdeep Sharma in the case registered under the Indian Penal Code (IPC) sections related to criminal conspiracy and cheating, besides provisions of the Prevention of Corruption Act.
It is alleged that Golden Jubilee Hotels took credit facilities to the tune of over Rs 728 crore during 2009-15 in the form of term loans and bank guarantees from the consortium comprising the Bank of Baroda, the erstwhile Corporation Bank, the Punjab National Bank, the Punjab and Sind Bank, the erstwhile Syndicate Bank, the Jammu and Kashmir Bank and the Bank of Maharashtra, they said.
When the company could not meet the deadlines to repay the loans, the banks carried out a forensic audit by Ernst and Young, which declared the account as fraud.
“It is submitted that borrower company, its promoters, along with other unknown persons and entities, in pursuance of a well-knitted criminal conspiracy…and with dishonest intention of causing wrongful loss to the consortium of banks led by Bank of Baroda to the tune of Rs 1,285.45 crore together with uncharged interest up to September 30, 2020 and wrongful gain to themselves, diverted and siphoned off the funds disbursed to them, dishonestly misappropriated the loan amount,” the banks alleged in the complaint.
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Coal mining case: CBI questions suspected mastermind Anup Majhi
The Supreme Court had restrained the agency from arresting Majhi till April 6.
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CBI carries out searches at 100 locations across 11 states in separate bank fraud cases
By PTI
NEW DELHI: The Central Bureau of Investigation (CBI) on Thursday carried out nationwide searches at 100 locations in separate alleged bank fraud cases of over Rs 3,700 crore, officials said.The coordinated search operation was spread across 11 states and pertained to 30 FIRs related to bank fraud, they said.
“These searches are part of a special drive to book fraudsters on the complaints received from different nationalised banks in India. The complainant banks include Indian Overseas Bank, Union Bank of India, Bank of Baroda, Punjab National Bank, State Bank of India, IDBI, Canara Bank, Indian Bank and Central Bank of India,” CBI spokesperson R C Joshi said.
The searches were spread across Kanpur, Delhi, Ghaziabad, Mathura, Noida, Gurgaon, Chennai, Thiruvarur, Vellore, Tiruppur, Bengaluru, Guntur, Hyderabad, Ballari, Vadodara, Kolkata, West Godavari, Surat, Mumbai, Bhopal, Nimadi, Tirupati Visakhapatnam, Ahmedabad, Rajkot, Karnal, Jaipur and Sri Ganganagar.
“It may be stated that the CBI has been receiving a number of complaints from various banks alleging cheating, diversion of funds, submission of fake/forged documents by different defaulting firms while obtaining loans/credit facilities etc,” Joshi said.
The CBI added it was receiving allegations that such firms have been turning defaulters, resulting in the loans becoming Non-Performing Assets (NPAs), thus causing heavy losses to the public sector banks.
“After scrutiny, the cases are registered by CBI. Thorough investigation is carried out in order to book the culprits, take them to face the law and endeavour to salvage public money,” Joshi said.
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Lok Sabha passes NaBFID Bill; commercial decision-making kept out of CVC, CBI, CAG purview
By PTI
NEW DELHI: Finance Minister Nirmala Sitharaman on Tuesday said the development finance institution (DFI) being set up to fund the infrastructure sector will remain outside the purview of the CAG, CVC and CBI, a move aimed at enabling faster decision-making.The DFI, called the National Bank for Financing Infrastructure and Development (NaBFID), however is going to be answerable to Parliament.
The Lok Sabha later passed the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 with voice vote.
Replying to the debate on the Bill, the finance minister said, “It will be absolutely answerable to the Parliament. So we are not going to one extreme. Where there is no oversight at all, but that heavy fear of taking decisions as a result of overlapping oversight is now being given space wherein legitimate commercial decisions can be taken professionally.”
Market watchers say genuine bonafide decisions in the banking sector are being impacted because of the worry of undue harassment by the ‘3Cs — Central Bureau of Investigation (CBI), Central Vigilance Commission (CVC) and Comptroller and Audit General (CAG).
Sitharaman also clarified that the government will be able to give sovereign guarantee even if its stake reduces to 26 per cent because it is not linked to stake but to the legislation.
The government intends to bring down its stake in NaBFID from 100 per cent to 26 per cent once the institution stabilises.
She also said the government will provide Rs 5,000 crore as grant and Rs 20,000 crore equity capital.
This government-owned development finance institution will help fund about 7,000 infra projects under the National Infrastructure Pipeline (NIP).
The legislation will give effect to the Budget announcement made by the finance minister on February 1.
The government has proposed Rs 20,000 crore to capitalise the institution.
The Union Cabinet had last week approved the Budget proposal of setting up the DFI, which will have tax benefits to enable fund raising from investors.
The government expects the DFI to leverage this fund to raise up to Rs 3 lakh crore in the next few years.
The Bill seeks to establish the NaBFID to support the development of long term non-recourse infrastructure financing in India, including development of the bonds and derivatives markets necessary for infrastructure financing.
As per the statement of objects and reasons of the Bill, it seeks to enable the central government, multilateral institutions, sovereign wealth funds, and such other institutions to hold equity in the NaBFID.
It proposes to enable the institution to provide financial assistance to infrastructure projects located in India or partly in the country and to enable the company to borrow or raise money by way of loans both in rupees and foreign currencies.
It also provide adequate safeguards for decision making to address risk aversion and proposes establishment of other development financial institutions, in addition to the NaBFID established under the proposed legislation.
“The Institution shall have both developmental and financial objectives. Among other things, this would include developing a deep and liquid bond market of international standards for long-term infrastructure financing in India including through widening of the issuer and investor base,” it said.
It would also facilitate the development of markets for interest rate derivatives, credit derivatives, currency derivatives and such other innovative financial instruments as may be necessary for infrastructure financing, it said.
“The financing objectives would involve establishing a credible framework that attracts equity investments from domestic and global institutional investors as well as debt investments, including green finance, from investors, aligned to their risk appetite and asset-liability profile, in order to cater the financing needs of Indian infrastructure sector,” it said.
The government will provide the institution with grants and contributions, guarantees at concessional rates for foreign borrowings and any other concessions, the Bill said, adding that dilution or sale of stake may be considered once the NaBFID has achieved stability and scale.
The Bill proposes to establish the head office of the institution in Mumbai and permits to form subsidiaries or joint ventures or branches, in India or outside.
The Centre would hold at least 26 per cent of the shares at all times, it said, adding concessional rate of fees should not exceeding 0.1 per cent for government guarantee.
The performance of the institution would, once in every five years, be reviewed by an external agency to be appointed by the central government, it said.
In her Budget 2019-20 speech, Sitharaman had proposed a study for setting up DFIs for promoting infrastructure funding.
About 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with a projected investment of Rs 111 lakh crore during 2020-25.
NIP, a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens, will be crucial for attaining the target of becoming a USD 5 trillion economy by FY 2025.
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‘Corruption’ in police transfers: Fadnavis meets Union Home Secretary; verbal volleys continue in Maharashtra
By PTI
MUMBAI: BJP leader Devendra Fadnavis on Tuesday met the Union Home Secretary in Delhi and demanded CBI probe into a purpoted state intelligence department report on `corruption’ in police transfers in Maharashtra.The former Maharashtra chief minister had claimed earlier in the day that he had 6.3 GB data of telephone calls intercepted by then Commissioner of Intelligence Rashmi Shukla in which names of several key police officers figure.
“The Union Home Secretary clearly told me that they will verify the documents and evidence and a report will be submitted to the central government. The government will take appropriate action accordingly,” he told reporters in the national capital.
“It is unfortunate that this (Maharashtra) government inducts police officers suspended for 16 years, they plant bombs, try to extort people. Maharashtra needs to be rescued from such situation,” he said, apparently referring to police officer Sachin Waze, an accused in the case related to the bomb scare near industrialist Mukesh Ambani’s house.
Fadnavis claimed that after a detailed report on intercepted phone calls was prepared, then Maharashtra director general of police had recommended a CID probe.
“However, since August 25, 2020 there has been no action taken on the report. We want to know reasons behind it. Who are those people whom the MVA government is trying to protect,” said the BJP leader.
ALSO READ | Ambani bomb scare: Sachin Waze involved in Hiran murder; will seek custody, says ATS chief
On NCP spokesperson and state minister Nawab Malik’s claim that Shukla collected this data without due permissions, Fadnavis said there were “enough documents to prove that phone call tapping was officially sanctioned by the government.”
Asked why he was not sharing it with the media, he said it contained very sensitive information about Maharashtra police and some politicians and he did not want “innocent people to suffer”.
Meanwhile, Maharashtra NCP chief and minister Jayant Patil on Tuesday asked who gave a senior police official the permission for phone tapping.
Speaking to reporters in Sangli, Patil asked if the official who carried out phone tapping had taken permission from the concerned authorities.
“On whose directions was the phone tapping done? Who had given the right to (then Commissioner of Intelligence) Rashmi Shukla to tap the phones? Was permission to tap phones taken? All this needs to be investigated,” he said.
The State Intelligence Department (SID) is a sensitive wing of the police and it is a serious issue if communication between its chief and a DGP came out in the open, Patil said.
A question also arises about how the previous BJP-led government used the SID, the senior minister added.
“In the report the Leader of Opposition (Devendra Fadnavis) has cited, several things are false. All transfers had taken place as per the establishment board’s directives,” the NCP leader said.
Patil also dismissed the BJP’s demand that President’s rule be imposed in the state.
Fadnavis did a good job as Leader of Opposition in the recently-held Assembly session but insistence on imposition of President’s Rule will make the BJP look greedy for power “and that kind of image is not good for the BJP”, he said.
Earlier in the day, Fadnavis claimed the Maha Vikas Aghadi (MVA) government did not act on an “incriminating” state intelligence department report containing audio intercepts of a “large scale corruption” in police transfers and postings.
The former Maharashtra CM said he had “6.3 GB data” of the calls intercepted by then Commissioner of Intelligence Rashmi Shukla with due permissions, where names of several key police officers were discussed.
Home Minister Anil Deshmukh on Tuesday evening met Chief Minister Uddhav Thackeray at the latter’s official residence `Varsha’ here.
Deshmukh is facing heat after former Mumbai police commissioner Param Bir Singh accused him of setting police officers a target of collecting Rs 100 crore per month from the pubs and bars.
ALSO READ | Param Bir Vs Anil Deshmukh: SC to hear former Mumbai top cop’s plea on Wednesday against Uddhav government
The NCP leader has denied the allegations.
A delegation of BJP leaders including Fadnavis, state unit chief Chandrakant Patil, Sudhir Mungantiwar and Ashish Shelar will meet Maharashtra governor B S Koshyari on Wednesday.
“The state has been direction-less for quite some time. We want governor Koshyari to seek a detailed status report from the chief secretary of Maharashtra,” said a senior BJP leader.
The meeting is scheduled for 9.30 am, he said.
The meeting will take place amid the BJP’s attempt to corner the Shiv Sena-led government over police officer Sachin Waze’s arrest in the case related to bomb scare near Mukesh Ambani’s house, corruption allegations against home minister Anil Deshmukh and intelligence department’s report about alleged bribery in police transfers.
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Saradha ghost returns as more officials, Trinamool candidates get summons ahead of polls
By Express News Service
KOLKATA: With the state heading towards the first of its eight-phase poll schedule, Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) swung into action on Friday and issued summons to two IAS officers, including a principal secretary, former director general of police and security advisor of Mamata Banerjee’s government.Earlier on Friday, CBI interrogated two Trinamool Congress candidates in connection with the Saradha chit fund scam.
Madan Mitra, who is contesting from Kamarhati constituency, and Jorasanko candidate Vivek Gupta appeared before CBI sleuths.
Mitra, who has been fielded by the party from Kamarhati assembly constituency, was, in the past, arrested by the CBI for his alleged involvement in the case, and later granted bail.
“I will always co-operate with the central agency. They summoned me and I visited their office. They asked questions and I replied,’’ said Mitra.
Gupta, who is contesting the elections from Jorasanko seat, admitted that he knew Sudipto Sen, the owner of the blacklisted firm, and said he visited the ED office to submit income tax details.
The ED issued summons to principal secretary B Gopalika, asking him to visit its office on March 24 in connection with a probe into the controversial 2017 disinvestment of the West Bengal government’s stake in Metro Dairy, which was India’s first public-private partnership in the dairy sector.
The CBI summoned former IPS officers Surajit Kar Purkayastha and and Rajat Majumdar. Purkayastha is presently serving as security advisor to the state government, in connection with the Saradha scam.
Sources in the agency said Purkayastha was seen attending an event organised by Saradha and delivering a speech.
Majumdar, the former DGP of West Bengal, was earlier apprehended by the CBI in the chit fund case.
The Calcutta High Court later granted him bail.
The central agency also issued summons to IPS officer LN Meena, who was the commissioner of Asansol commissionerate, and IAS officer Arun Prasad, district magistrate of Bankura, in connection with a coal pilferage case.
Shah to release Bengal manifesto on Sunday
Union Minister for Home Affairs and former BJP chief Amit Shah will release the party’s manifesto for the West Bengal Assembly elections on Sunday.
The manifesto has been prepared on the basis of an outreach programme in which public suggestions were taken, on the lines of the 2019 Lok Sabha elections.
Shah will be on a one-day visit of West Bengal to release the manifesto.
(With PTI Inputs)
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CBI books Cadbury India Pvt Ltd for ‘fraudulently’ availing area-based tax benefits in Himachal
By PTI
NEW DELHI: The CBI has booked Cadbury India Private Limited (now known as Mondelez Foods Private Limited) for alleged corruption and misrepresentation of facts to fraudulently avail area-based tax benefits in Baddi, Himachal Pradesh, officials said on Wednesday.After registering the FIR, the Central Bureau of Investigation (CBI) carried out searches at 10 locations in Solan, Baddi, Mohali, Pinjore and Mumbai, they said.
The FIR is an outcome of a preliminary enquiry registered by the agency, which showed that the company allegedly “paid bribes, misrepresented facts and manipulated records to fraudulently avail area-based exemption benefits (central excise and income tax) in Baddi, Himachal Pradesh, knowing fully well that it was not entitled to avail area-based tax exemption benefits”, the officials said.
“For availing the same, some members of the executive board of the company, along with key managers, collectively decided to manipulate records, engage intermediaries to route bribes and cover up all the evidence that had surfaced during the internal investigation,” the CBI has alleged.
Besides the company, the agency has booked a total of 12 individuals, including two the then Central Excise officials, the then Cadbury India Limited (CIL) vice-president (finance and compliance) Vikram Arora and its directors Rajesh Garg and Jailboy Phillips.
CIL had set up a manufacturing unit at Sandholi village for manufacturing malt-based food (Bournvita).
The unit started commercial production from May 19, 2005, the CBI has alleged in its FIR.
Two years later, CIL proposed to expand production by setting up another unit for its products “5 Star” and “Gems” as the second unit on the land acquired from Barmalt in 2007 in Baddi to avail an exemption from excise duty and income tax for 10 additional years, it has alleged.
The company decided to expand its capacity and avail tax benefits from May 19, 2005, for which it applied for an amalgamation of the two units, stating that it has decided to have its second unit as a composite in the existing facility, the CBI FIR says.
The approval was granted on March 7, 2008 by the Directorate of Industries, it added.
About 15 months later, the company said its second unit has started production, for which it should be given tax benefits, which was not possible as the company had already stated that it would be a composite unit of an already existing factory, which was getting tax benefits from 2005, the agency has said.
The company again applied for deamalgamation and sought to set up the second unit as a different company — Cadbury India Limited Unit II — on March 29, 2010, two days before the cut-off date to avail the exemption, the CBI has alleged.
The agency has alleged that senior executives of the company conspired with private individuals and made payments to get necessary approvals for setting up the second unit as a separate company to avail tax benefits for which it was not eligible.
The CBI has found details of various payments made to camouflage alleged bribes and commissions to get the work done, the FIR alleges.
The agency has alleged that the DGCEI had also probed the matter and slapped a fine of Rs 241 crore on the company.