CBI files FIR against former CMD/IRFC for ‘funds embezzlement’

The agency registered the case on August 28 on a complaint from Bhaskar Roy Choudhary, joint director, Vigilance (Intelligence), Railway Board

The #CBI has registered an #FIR of criminal conspiracy and under Prevention of Corruption Act against #AmitabhBanerjee, former chairman and managing director (#CMD) of Indian Railway Finance Corporation (#IRFC), for alleged #Corruption and #embezzlement of public money during his tenure at the Public Sector Undertaking.

The agency registered the case on August 28 on a complaint from #BhaskarRoyChoudhary, joint director, #Vigilance (Intelligence), Railway Board, on February 27, 2023.

In his complaint, Roy Choudhary stated that the matter appears to be a “clear case of financial embezzlement” on the part of #IRFC officials. “The possibility of more such #procurements cannot be ruled out at this stage and private personnel are also involved in the issue,” he alleged.

Amitabh Banerjee was sacked from his post as CMD/IRFC last year over alleged financial misconduct and misuse of position.

The #CBI had registered an #FIR against #Banerjee and others in 2020.

“A written complaint on February 23, 2023 was received [from] Roy Choudhury and he alleged financial embezzlement on part of officials of #IRFC, including #Banerjee, in connection with procurement/purchase and distribution of exorbitant gold and non-gold items from funds of #IRFC,” the separate #FIR, registered this August, stated.

“The Vigilance branch of #RailwayBoard scrutinized two files of #IRPC… and revealed serious irregularities with respect to #procurement and #distribution of #gold and non-gold items. The complainant alleged that private persons are involved.”

IRFC is a top-rated, Schedule-A #PSU owned by the #Railways. It lends money to the Railways for purchase of #rolling_stock and, of late, creation of #infrastructure assets.

“In connection with information alleging procurement/purchase and distribution of exorbitant gold and non-gold items by #IRFC from its funds, two files of IRFC were examined,” Roy Choudhary stated in his complaint. “Subsequent to the scrutiny of these files, statements were recorded and serious irregularities with respect to procurement/purchase and distribution of gold coins and non-gold corporate gift items were revealed.”

The complaint stated, “Clarifications were sought from #IRFC and despite all efforts, IRFC officials led by the then #CMD/IRFC (now divested of powers of CMD), Banerjee did not provide the list of beneficiaries of these gold and non-gold corporate gifts items. Further, no #SOP [standard operating procedure] or laid down procedure for purchase and distribution of such costly items was provided by IRFC officials.”

Roy Choudhary also alleged that Banerje, in his explanation, stated that no list of beneficiaries of “such mementos and gifts distributed to dignitaries is generally maintained by any organization in our #ecosystem to the best of our knowledge, and IRFC follows the industry best practices in all respects”.

The complaint noted, “He [Banerjee] also stated that none of the medallions has been distributed to the functional directors. This is, however, in contradiction with statements of other IRFC officials, who stated that certain items were given to two independent directors of IRFC.”

From examination of the #Corporation’s officials, the complainant stated, “it is evident that they are not willing to disclose the list of recipients of gift items procured from public money. Being a finance company, the complete disregard to financial propriety in this issue points out at possible mens rea on the part of IRFC officials, including Banerjee”.

CBI files FIR against former Railways PSU chairman & MD for ‘funds embezzlement’