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Our Bureau

New Delhi, Nov. 24 The Acting Chairman of Company Law Board (New Delhi), Mr R. Vasudevan, was arrested on Tuesday by the Central Bureau of Investigation (CBI) for allegedly taking a bribe of Rs 7 lakh from a Company Secretary at his official residence to “give a favourable ruling in a case concerning a media house.”

Mr Vasudevan and the Company Secretary, Mr Manoj Banthia, were later produced before a CBI-designated court here, CBI spokesperson, Mr Harsh Bhal, told Business Line. The court remanded the duo to six-day CBI custody, he added. The court has asked the CBI to permit counsel for the accused to meet them once a day for half an hour.

Mr Vasudevan (who was earlier a Regional Director, Southern Region and also Director, Investigation and Inspection, Corporate Affairs Ministry) was also overseeing the investigations into the over Rs 7,500-crore Satyam scam case after the superannuation of the Board Chairman, Mr Balasubramanian, official sources said.

Mr Vasudevan’s arrest means his supervisory role in the Satyam scam probe could also be investigated, they said.

Mr Bhal said that “the CBI has caught red-handed a CLB, New Delhi-Member, Mr R. Vasudevan, and a Company Secretary in a bribery case of Rs 7 lakh. The CBI recovered Rs 55 lakh, including the bribe amount of Rs 7 lakh, from the CLB member’s residence and Rs 3 lakh from the Company Secretary’s hotel room at Delhi.”

“The accused (Mr Vasudevan) demanded illegal gratification to give favourable orders in a case being presided over by him. The Company Secretary was caught while delivering illegal gratification,” a CBI statement said.

Mr Vasudevan was nabbed from his official residence in South Delhi late Monday night while he was allegedly taking the bribe amount from Mr Banthia, official sources said.

The CBI said it has registered a case against Mr Vasudevan, Mr Banthia, advocate Ankur Chawla and some other persons under Section 120-B (criminal conspiracy) of the Indian Penal Code and under the Prevention of Corruption Act, including Section 7 (public servant taking bribe other than legal remuneration in respect of an official act), and Section 8 (taking bribe, in order, by corrupt or illegal means, to influence public servant).

The CBI is scrutinising the incriminating documents recovered during searches from the premises of the accused persons. “Searches are going on and further investigation is in progress,” the CBI said.

The CBI conducted searches at the office and residence of Mr Vasudevan in Delhi, his residence in Chennai, the hotel room of Mr Banthia in Delhi, his residence in Kolkata as well as the office and residence of Mr Chawla in Delhi, Mr Bhal said.

The CBI said information given by its source led to the arrest of Mr Vasudevan nad Mr Banthia. Mr Banthia is employed with a leading language daily, sources said.

The Corporate Affairs Minister, Mr Salman Khursheed, told Business Line that “I know they were arrested. But I don’t know the details as I was busy in Parliament.”

Mr N. K. Jain, Secretary and CEO, Institute of Company Secretaries of India (ICSI), told Business Line that though he was not aware of the facts, if the accused Company Secretary is found guilty by the ICSI’s Board of Discipline or the Government-constituted Disciplinary Committee, his name would be removed from the ICSI Membership Register and a fine of up to Rs 5 lakh levied on him.

Agency reports quoted the defence counsel as saying that Mr Vasudevan had recently undergone a cardiac bypass surgery and his custodial interrogation was uncalled for. Mr Vasudevan would cooperate and also account for the alleged recovered money, the counsel said.

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