GAIL executive director among 5 arrested by CBI for allegedly taking Rs 50 lakh bribe, stock falls

The Central Bureau of Investigation (CBI) on Tuesday arrested KB Singh, executive director of the Gas Authority of India Limited (GAIL), for allegedly accepting a bribe of Rs 50 lakh. Four others, including the person who gave the bribe, have also been arrested.

The bribe was allegedly being given for favours in a GAIL (INDIA) Ltd project.

The arrest was made after hours-long raids at Singh's residence in Uttar Pradesh's Noida. Searches were also onducted in Delhi and Visakhapatnam.

GAIL's stock reacted adversely to the news with it trading at day's low of Rs 122.65 on BSE at 1450 hours on Tuesday. The day's high of GAIL was Rs 127.1.

GAIL, which is a Maharatna company under the Ministry of Petroleum and Natural Gas, is the largest natural gas transmission and marketing company in India.

Earlier, the CBI registered a case against Amitabha Banerjee, former CMD of Indian Railway Finance Corporation (IRFC) in connection with irregularities in the purchase and distribution of exorbitant gold and non-gold items from funds of IRFC. The FIR into the matter reads that CBI has received a complaint that alleges financial embezzlement on the part of officials of IRFC including Amitabha Banerjee, the then CMD of IRFC (Indian Railway Finance Corporation) in connection with procurement/purchase and distribution of exorbitant gold and non-gold items from funds of IRFC.

Besides Singh, the CBI also arrested Director of Vadodara-based Advance Infrastructures Private Limited Surendra Kumar, Chief General Manager of GAIL Davinder Singh, and two other persons Harsh Yadav and Suryavesh, a CBI spokesperson said in a statement.

In addition to the arrested individuals, the CBI has also named Advance Infrastructures Private Limited and Senior General Manager of MECON Limited Sunil Kumar as accused in the FIR.

''A case was registered... on the allegations that the Executive Director (Projects), GAIL in conspiracy with others was extending undue favour in connection with SAPL (Srikakulam Angul Pipeline) and VAPL (Vijaipur Auraiya Pipeline) Projects of GAIL,'' the spokesperson said.

The CBI alleged that Surendra Kumar had arranged the bribe of Rs 50 lakh, which was to be delivered to K B Singh, through two private persons.

On getting information about the illicit transaction, the CBI laid a trap and nabbed K B Singh.

With inputs from PTI