NEWDELHI: The CBI will probe into the role of some former and present Railways officials for allegedly colluding with a contractor and causing a loss of over Rs 1 crore to the public exchequer.
Acting on the Central Vigilance Commission’s (CVC) recommendation, the agency had decided to investigate the matter. During the inquiry, the CVC found that there was prima facie evidence to indicate that the former general manager of South Central Railways was involved in approving an out-of-the-court settlement of an arbitration award, which was beyond his delegated powers.
The official allegedly settled the case just before his superannuation (penultimate working day of his service). The commission had advised the Railways to slap major penalty against three officers and minor penalty against five officers responsible for the irregularities.
It also referred the matter to the CBI for a detailed probe to find the role of the beneficiaries of the out-of-the-court settlement worth Rs 1.17 crore.
According to the official, the firm was facing a dispute with the Railways over the non-adherence of tender norms while supplying certain items.