CBI arrests 5 people including govt officials for causing loss of over Rs 30 cr to RLDA

New Delhi: The Central Bureau of Investigation (CBI) has arrested five persons including two retired government officials in an ongoing investigation of a case for causing an alleged loss of over Rs 30 crore to Rail Land Development Authority (RLDA).

The accused have been identified as Vivek Kumar, then Manager, RLDA; Jaswant Rai, then Branch Head, Bank of Baroda, Shahdra and three others-- Gopal Thakur, Hitesh Karelia, and Nilesh Bhatt.

All the arrested accused were produced before the Competent Court and were remanded to Judicial Custody.

"A case was registered on a complaint from Rail Land Development Authority (RLDA), a statutory body under the Ministry of Railways against unknown public servants and unknown private persons on the allegations that RLDA had been put to a loss of Rs 31.50 Crore (approx) by unknown public servants and officials of Bank of Baroda, Vishwas Nagar Branch, New Delhi. It was alleged that RLDA had initially invested an amount of Rs 35 crore (approx) for one year in the form of Fixed Deposit (FD) at Bank of Baroda, Vishwas Nagar Branch, Shahdra, Delhi and thereafter the maturity proceeds were supposed to be re-invested, for a period of three months," CBI officials said.

"However, the bank invested only Rs. 3.50 Crore in Fixed Deposit (FD) and the remaining Rs 31.50 crores were diverted to different shell companies with the connivance of Bank officials, RLDA Officials and Private Persons. Only the maturity proceeds of Rs. 3.50 Crore were reinvested for three months. This resulted in the loss to RLDA," they added.

It was further alleged that the officials of Bank of Baroda, Vishwas Nagar Branch, Delhi in conspiracy with other private persons based in Mumbai, Delhi and other locations had defrauded RLDA to the tune of Rs 31.50 crore (approx) which was entrusted to the bank for the purpose of investment, however, the same was misappropriated using forged letters/ advisories purported to have been issued by RLDA officials.
As per the officials, it was also alleged that the accused diverted the funds deposited with the Bank of Baroda into the accounts of various Mumbai-based shell companies and thereafter the same was withdrawn and misappropriated. The alleged role of officials of the Rail Land Development Authority (RLDA), Delhi has also emerged in this case.

Searches were earlier conducted at 12 different places including Delhi, Mumbai, Goa and Himachal Pradesh.
The investigation into the matter is underway and further information is awaited.