HYDERABAD:Following the arrest of senior RITES (Rail India Technical and Economic Services) official K Venkateswara Rao and project manager of one KVR Infrastructure, Shankar, by the Central Bureau of Investigation Saturday, the slueths are likely to probe backwards to ascertain whether the official has awarded out of turn contracts to the firm in the past too.
The arrest was based on a tip off that Shankar was carrying Rs 15 lakh which he offered to Rao, in the city, in return for clearing pending bills running to the tune of Rs 1.5 crore, out of a contract value of Rs 11 crore. As Group General Manager ( Civil) of RITES, K Venkateswara Rao was responsible for surveying of technical and economic side of various projects for which contracts are awarded later. With his arrest, CBI sleuths are likely to go back and investigate all the contracts Rao had cleared in the past.
"We will write to the Ministry of Railways and examine previous contracts awarded by Rao. It is a time-taking investigation process and we will be also writing to banks to verify the banking transactions of the accused officer and the firm," said sources. It would also be probed whether Reddy was in touch only with Shankar or any more representatives of the firm. "Even when there was tough competition between firms bidding for contracts, the accused officer is said to have awarded contracts to this particular firm. His financial transactions were being monitored and there appears to be certain anomalies," sources said.
KVR infrastructure, based in Dindigal, Tamil Nadu, is learnt to have secured several contracts in the past with alleged blessings of Rao.
Initially, CBI registered a case under sections 120-B (criminal conspiracy) of the IPC and Section 7, 12, 13 (2) read with 13(1) (d) of Prevention Corruption Act 1988, against the duo. In due course of investigation, as more skeletons tumble out of the cupboard, the agency is likely to alter case.
An official with South Central Railways here said that RITES is just another sister concern of Railways. "We do not deal with RITES directly. They are into survey of projects and contracts," he said. Further, he said that the officer will be placed under suspension soon. "Since there is a CBI inquiry going on against him, there wouldn't be any need for an internal probe. CBI will chargesheet and Law will take its own course.," he added.
CBI to file petition seeking police custody of accused
The arrested accused K Venkateswara Rao and KVR Infra project manager Shankar were produced before the court and remanded to judicial custody. The CBI is likely to file a petition before the court seeking police custody of accused for further questioning.