The CBI has booked former CMD of Rail Vikas Nigam Ltd, Satish Agnihotri, on the orders of the Lokpal for allegedly favouring a private company by illegally diverting Rs 1,100 crore of government money to it, officials said Tuesday. 

Following his retirement from Rail Vikas Nigam Ltd (RVNL), Agnihotri was last year appointed as Managing Director, National High Speed Railway Corporation Ltd (NHSRCL), which is handling the government's bullet train project, .

He was sacked in July this year after the Lokpal ordered a CBI probe against him, the officials said. 

The Central Bureau of Investigation (CBI) has also booked alleged beneficiary private company Krishnapatnam Rail Co Ltd (KRCL) in the case registered under IPC Section 120-B, related to alleged criminal conspiracy and provisions of the Prevention of Corruption Act, they said.

The central agency has registered the case on the orders of Lokpal. The anti-corruption watchdog, in its order recommending the CBI probe, had said as per allegations, Agnihotri had misused his official position and diverted Rs 1,100 crore (which would amount to Rs 1,600 crore with interest), in an unauthorised manner to KRCL, out of the funds received from the Ministry of Railways, resulting in a huge loss to the exchequer. 

According to the complaint, Navyuga Engg Co Ltd (NECL) owned a private port Krishnapatnam and wanted to connect it with railway network by laying a 110km line. 

RVNL joined hands with the NECL in 2005-06 to form a joint venture company KRCL, which had received the diverted funds, the complaint alleged.

It is alleged that after his retirement from RVNL in 2018, Agnihotri was given a plum job in NECL, along with perks, including luxury cars and a farm house in Mehrauli, among other benefits. 

The Lokpal flagged the allegations that Agnihotri, who served for nine years in RVNL, used his contacts in the PSU to get many big contracts for NECL in violation of the CVC guidelines. 

The complaint had also alleged that Agnihotri was "handpicked" as MD, RVNL, by the then Railway Minister Mamata Banerjee by "jumping" several senior officers, just before the West Bengal elections in 2011.

The Lokpal has also underlined huge benefits received by Agnihotri under the Performance Related Pay Policy, which was unmatched by his peers in other PSUs.

The watchdog, on the point of quid pro quo, said after his retirement Agnihotri was employed in NECL at an exorbitant salary in violation of government rules.

It is also alleged that Agnihotri received "huge amounts in white" in lieu of kickbacks, when his son was employed in AECOM and his daughter in KPMG, while both these companies acted as consultants to RVNL.

"Not only that, the private company viz NECL also employed the daughter of RPS-1 (Agnihotri) for the favour done by him and through this appointment, he managed to avail of the facilities of accommodation and other benefits from NECL, even after leaving and joining another government company as MD," the Lokpal noted.

Agnihotri in his detailed submissions to the Lokpal had denied the allegations against him and said the complainant made these allegations against him after his appointment as MD of NHSRCL.  The former officer alleged that the complainant is threatening him and his family members through WhatsApp chats, etc. 

"The Division Bench...directs that the allegations made in the complaint, in respect of RPS-1 be investigated so as to ascertain whether any offence under the Prevention of Corruption Act is made out," the watchdog said in its order directing the CBI to conduct a probe and submit a report on or before December 12, 2022.

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