CBI arrests 5 accused including Public Servants for Misappropriation of Funds

The Central Bureau of Investigation (CBI) has arrested five accused including two retired officials, each from Rail Land Development Authority (RLDA) and Bank of Baroda, Shahdara, Delhi and three private persons in an ongoing investigation of a case for causing an alleged loss of Rs. 31.50 crore to RLDA.

The Competent Court saw all of the arrested suspects and remanded them to judicial custody.

A complaint was filed by the Rail Land Development Authority (RLDA), a statutory body under the Ministry of Railways (Govt. of India), alleging that unknown public employees and officials of the Bank of Baroda, Vishwas Nagar Branch, New Delhi had caused the RLDA to suffer a loss of approximately Rs.31.50 crore. According to the allegations, RLDA invested an initial sum of approximately 35 crore rupees for a period of one year in the form of a fixed deposit (FD) at the Bank of Baroda’s Vishwas Nagar Branch in Shahdara, Delhi, and was then required to reinvest the maturity proceeds for a further three months.

With the help of bank employees, RLDA officials, and private individuals, the bank only invested Rs. 3.50 crore in fixed deposits, and the remaining Rs. 31.50 crore was diverted to various shell companies. For three months, only the Rs. 3.50 crore in maturity proceeds were reinvested. RLDA suffered a loss as a result.

Further allegations included that Bank of Baroda employees at the Vishwas Nagar branch in Delhi conspired with other private individuals based in Mumbai, Delhi, and other cities to defraud the RLDA of approximately Rs. 31.50 crore, which was given to the bank for investment purposes but was instead misappropriated using fake letters and advisories that purported to be from RLDA employees.

Additionally, it was claimed that the defendant misappropriated money that was deposited with the Bank of Baroda in the accounts of various shell companies based in Mumbai. In this case, the alleged involvement of employees of the Delhi-based Rail Land Development Authority (RLDA) has also come to light.

Searches had previously been carried out in 12 different locations, including Delhi, Mumbai, Goa, and Himachal Pradesh.

The investigation is ongoing.