The CBI on Thursday conducted searches on the premises of former Union Finance Secretary Arvind Mayaram after registering an FIR against him and a UK-based company for alleged corruption in the supply of exclusive colour shift security thread for currency notes.
In its FIR, the CBI alleged that Mayaram, the UK-based company De La Rue International Ltd and unidentified officials of the Finance Ministry and the RBI, hatched conspiracy to extend undue favour to the British firm.
Mayaram granted an “illegal” three years extension to the firm for supplying colour shift security thread without taking any mandatory security clearance from the Home Ministry or informing the then Finance Minister, the FIR says.
The extension granted by Mayaram was allegedly the fourth, the FIR alleged.
Following the registration of the case, the agency conducted searches at the Jaipur and Delhi residence of the 1978-batch retired IAS officer.
In 2018, the agency had registered a Preliminary Enquiry on a complaint dated February 14, 2017 from the Chief Vigilance Officer of the Department of Economic Affairs in the Finance Ministry, Raj Kumar.
The agency had entered into a five-year agreement with De La Rue International Ltd for the supply of exclusive colour shift security thread for Indian bank notes in 2004. The contract agreement was subsequently extended four times till December 31, 2015, the FIR alleged.
The then Finance Minister had on July 17, 2004 authorised the Reserve Bank of India (RBI) to enter an Exclusivity Agreement with the suppliers of exclusive security features on behalf of the Union government, which was signed with De La Rue on September 4, 2004.
Based on its findings, the CBI has converted the PE into a Regular Case (FIR) against Mayaram, who is presently Economic Adviser to Rajasthan Chief Minister Ashok Gehlot.
Incidently, the searches come days after Mayaram had joined the Bharat Jodo Yatra of Congress leader Rahul Gandhi.
The agreement with the company specifically mentioned that the company had developed an exclusive India specific green to blue colour shift clear text MRT machine readable security thread for use in Indian banknote paper as a security feature and for which the company holds exclusive manufacturing rights.
The agency has alleged that the exclusivity agreement was signed by PK Biswas, Executive Director, RBI, without verifying the patent claim of De La Rue.
Both RBI and the Security Printing and Minting Corporation of India Ltd (SPMCIL) submitted their reports about the non-possession of the patent by the company on April 17, 2006, and September 20, 2007, respectively.
“But Mayaram never apprised the same to the then Finance Minister,” it alleged.