GAIL Ltd's stock is set to draw attention this Wednesday, following the Central Bureau of Investigation (CBI) arresting an executive director and a chief general manager of GAIL, along with three others, in connection with an alleged bribery case involving Rs 50 lakh. The bribery scandal pertains to the granting of favours to a Vadodara-based company involved in two pipeline projects.
In a statement filed with BSE after market hours, GAIL stated that it is too early to determine the impact of these developments. The CBI has registered a case against the executive director (Projects) of GAIL, a private company in Vadodara and its director, a CGM at Gas Authority of India (GAIL), a Senior General Manager of MECON Limited, two private individuals residing in Delhi and Jhajjar (Haryana), as well as unidentified others. The allegations suggest that the Executive Director (Projects) of GAIL, in collaboration with others, showed undue favouritism concerning the SAPL (Srikakulam Angul Pipeline) and VAPL (Vijaipur Auraiya Pipeline) Projects of GAIL. The CBI initiated action after receiving information about a possible bribe delivery to the Executive Director (Projects) of GAIL, KB Singh, through a courier on Monday.
The CBI executed a successful operation, apprehending both the private individual delivering the bribe and the public servant. They recovered the bribe amount of Rs 50 lakh from ED (Projects). Subsequent searches were conducted at the residences of the accused, including locations in Delhi, Noida, Visakhapatnam, and Vadodara, leading to the discovery of incriminating documents and digital evidence.
Furthermore, it was alleged that the director of the private company had arranged the Rs 50 lakh bribe through two private individuals, with the intention of delivering it to the public servant. During the search operation, the CBI retrieved the alleged bribe amount from Singh, who was taken into custody after initial questioning. The arrest took place following extensive raids at Singh's residence in Noida, Uttar Pradesh, as well as in Delhi and Visakhapatnam.
In a separate case, the CBI also registered a case against Amitabha Banerjee, former CMD of the Indian Railway Finance Corporation (IRFC), concerning irregularities in the procurement and distribution of expensive gold and non-gold items using IRFC funds. The FIR alleges financial misappropriation by officials of IRFC, including Amitabha Banerjee, who was the CMD at that time, in the procurement, purchase, and distribution of exorbitant gold and non-gold items using IRFC funds.
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