CBI files FIR against govt officials in cash seizure case

The CBI, Bengaluru, has regist­e­red an FIR (RC 23(­a)/­20­16­/­CBI­/a­c­b­/blr) in connection with the seizure of a huge stack of Rs 2,000 currency notes from two government officials and two contractors.

Sources said the copy of the FIR was submitted to the jurisdictional Special CBI court in the city on Saturday. The Income Tax officials had seized Rs 5.7 crore cash in Rs 2,000 currency, bullion of 7 kg and jewellery of about 9 kg apart and Rs 90 lakh cash in old currency.

The searches were conducted at the houses and other premises belonging to T N Chikkarayappa, managing director of Cauvery Neeravari Nigama Ltd, S C Jayachandra, Chief Project Officer of State Highway Development Project and two contractors in Bengaluru, Chennai and Erode in Tamil Nadu. The I-T department launched the action on November 30 and continued the searches till Saturday.

After registering the FIR, CBI officials on Sunday questioned the son of one of the contractors and both the government officials. Chikkarayapa and Jayachandra were summoned to the CBI office in Ganganagar on Ballari Road on Sunday. The CBI has also sealed the premises searched by the I-T department for further investigation.

Though it is not known under what provisions the FIR was registered, a source revealed that there was sufficient material to suggest that the cash seized at the residences of the officials were proceeds of the crime (corruption money). The I-T department on Friday had stated that total admission of unaccounted income from two engineers and two contractors, stood at Rs 152 crore. This included documents pertaining to several properties.

The CBI, in coordination with the I-T department, is learnt to have established a link between the contractors and the government officials in awarding certain contracts on behalf of the government. A source said that apart from the provisions under the Prevention of Corruption Act, the agency is also looking into the possible involvement of certain bank officials in providing new currency to the officials and the contractors.