The Central Bureau of Investigation has registered an FIR against Indian Rail Finance Corp.'s former Chairman and Managing Director Amitabha Banerjee for alleged bungling in the purchase of gifts such as gold coins at exorbitant prices for distribution, officials said on Monday.
Banerjee, who had joined the PSU as managing director in 2019 before being elevated as CMD was sacked last year over alleged financial misconduct and misuse of position, they said.
The central probe agency was handed over the probe after approval from Railway Minister Ashwini Vaishnaw.
Investigations began when the Railway vigilance received inputs about alleged irregularities in the purchase and distribution of gold coins and non-gold items by the IRFC using its funds, officials said.
It scrutinised two files and recorded statements of persons involved in the purchase and distribution of the gold coins and other gifts, they said.
"Despite all efforts, IRFC officials led by the then CMD Amitabha Banerjee did not provide the list of beneficiaries of these gold and non-gold corporate gift items... Further, no SOP or laid down procedure for purchase and distribution of such costly items was provided by the IRFC officials," the vigilance complaint, which is now part of the FIR, stated.
The IRFC said the extent of the alleged scam is not known as only two files have been scrutinised by the vigilance and the possibility of more such procurements could not be ruled out.
During the enquiry, Banerjee said no such list is maintained and none of the medallions has been distributed to functional directors.
"This is, however, in contradiction with the statement of other IRFC officials who stated that certain items were given to two independent directors of IRFC," it said.
The vigilance department alleged that IRFC officials, during their examination, were not "willing to disclose' the list of recipients of gift items procured from public money which prima facie appears to be a 'clear case of financial embezzlement of part of officials".
"Being a finance company, the complete disregard to financial propriety in this issue points at possible mens rea (intention or knowledge of wrongdoing that constitutes part of a crime) on the part of IRFC officials, including the then CMD. Railway Board Vigilance could not be in a position to develop the case further as IRFC officials have not given a list of beneficiaries," the complaint alleged.
IRFC is a public sector undertaking owned by the Railways, which lends money to the national transporter for the purchase of rolling stock and, of late, the creation of infrastructure assets.
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