CBI registered a Case against IRFC’s former CMD in gift purchase scam

The Central Bureau of Investigation (CBI) has filed a FIR against Amitabha Banerjee, the former chairman and managing director of Indian Rail Finance Corporation, for alleged bungling in the acquisition of gifts such as gold coins at excessive rates for distribution, sources said on Monday. Banerjee, who joined the PSU as managing director in 2019 before being promoted to CMD, was fired last year for suspected financial malfeasance and misuse of authority, according to reports.

The investigation was turned over to the central investigation agency after consent from Railway Minister Ashwini Vaishnaw.

According to authorities, the investigations began after the Railway Vigilance got information concerning possible anomalies in the acquisition and distribution of gold coins and non-gold commodities by the Indian Rail Finance Corporation (IRFC) using its funds.

It examined two files and recorded statements from those engaged in the acquisition and distribution of gold coins and other presents, they claimed.

“Despite all efforts, IRFC officials led by then-CEO Amitabha Banerjee did not provide a list of recipients of these gold and non-gold corporate gift items.”

“Further, no SOP or laid down procedure for purchase and distribution of such costly items was provided by the IRFC officials,” the vigilance complaint, which is now part of the FIR, added.

The IRFC stated that the scope of the suspected fraud is unknown because just two files have been inspected by the vigilance, and the potential of other similar procurements cannot be ruled out.

During the investigation, Banerjee stated that no such list is kept and that no medallions have been handed to functional directors.

“However, this contradicts the statements of other IRFC officials who stated that certain items were given to two independent directors of the IRFC,” the statement read.

The vigilance department claimed that during their investigation, IRFC officials were not “willing to disclose” the list of beneficiaries of gift goods purchased with public funds, which looks to be a “clear case of financial embezzlement on the part of officials.”

“Being a finance company, the complete disregard for financial propriety in this matter points to possible mens rea (intention or knowledge of wrongdoing that constitutes part of a crime) on the part of IRFC officials, including the then CMD. The Railway Board Vigilance could not pursue the case further because IRFC officials had not provided a list of beneficiaries,” according to the complaint.

IRFC is a public sector business controlled by the Railways that loans money to the national transporter for the acquisition of rolling equipment and, more recently, the building of infrastructural assets.