New Delhi: The Central Bureau of Investigation (CBI) has arrested a 2017-batch Indian Revenue Service officer posted with the Serious Fraud Investigation Office (SFIO) for allegedly demanding a bribe from a private company executive in exchange for helping him in a bank fraud probe, and threatening arrest and prosecution if he did not pay, ThePrint has learnt.
According to agency sources, the officer allegedly sought to collect the money through an SFIO inspector, who was caught accepting Rs 20 lakh—the first instalment of the alleged bribe—during a trap operation in Chennai. The inspector’s arrest led investigators to the IRS officer, who was subsequently arrested.
The alleged bribe demand relates to SFIO’s investigation into DHFL, which has also been at the centre of one of India’s largest bank fraud cases. DHFL and its former promoters, Kapil and Dheeraj Wadhawan, are accused of defrauding a consortium of 17 banks led by Union Bank of India of Rs 34,615 crore. Investigators allege that loan funds were siphoned off through shell companies, and the diversion concealed through fictitious loans and falsified accounts.
The government ordered an SFIO investigation into DHFL’s affairs in 2019.
“A trap was laid after we received information about the officer indulging in corrupt practices. An inspector was caught accepting the money and arrested. The senior officer’s alleged involvement subsequently emerged, and he too was arrested. He is now being questioned,” a source in the security establishment said.
The officer allegedly demanded a large sum to settle the case, threatening action if the money was not paid, the source added.
When asked about the details of the case the company was facing, the CBI refused to divulge details at this moment. “We received credible inputs about the officer seeking illegal gratification, following which the operation was planned and the arrest was made,” a second source said.
Investigators are examining whether the officer had accepted money from others in the past. “The money has been seized, along with a few electronic devices. His call detail records are being examined, as is his communication with the company’s executives. More details will emerge during the investigation,” the source added.
The SFIO is a multidisciplinary organisation under the Ministry of Corporate Affairs that investigates serious corporate fraud. It brings together experts in accountancy, forensic auditing, law, information technology, investigation, company law, capital markets, banking and taxation.
“The SFIO handles sensitive, high value cases. Whether other companies under investigation were also being asked for money remains to be ascertained,” the source said.
The CBI has registered a First Information Report under relevant sections of the Prevention of Corruption Act.
(Edited by Nardeep Singh Dahiya)
Also Read: Under probe in Rs 90,000 cr fraud case, ex-Sahara Group executive’s Switzerland travel plea junked