labels: finance - general, economy - general, governance
Union state finance minister''s PA arrested for accepting bribenews
Our Economy Bureau
23 May 2003

New Delhi:
A personal assistant of Union minister of state for finance Gingee N Ramachandran was arrested by the Central Bureau of Investigation (CBI) while accepting a bribe from a senior Indian Revenue Service (IRS) officer here.

Official sources say R Perumalswamy, PA to the minister, was caught while accepting Rs 4 lakh from an IRS officer, Anurag Vardhan, for facilitating a posting of his choice. Vardhan, a deputy commissioner posted in New Delhi, was also arrested by the CBI for giving the bribe.

In a swift move following the event, the finance ministry immediately put on hold the transfer orders involving 54 deputy commissioners and assistant commissioners of income tax which were issued on 21 May 2003.

The sources say Vardhan struck a deal with a Chennai-based chartered accountant, Krishnamurthy, according to which he would pay Rs 5 lakh to a tout in the finance ministry. In return, Krishnamurthy would facilitate the transfer of the IRS officer to Mumbai.

The sources add that Vardhan's name was on the transfer list of officers issued by the IT department last evening. The tout was to collect Rs 4 lakh as part payment for the deal from Vardhan's residence in Delhi. The residence was kept under surveillance, and investigation showed that the tout was the first PA to Ramachandran, who belongs to the MDMK, a constituent of the ruling NDA coalition.

Searches were conducted at the office and residence of Perumalswami, Vardhan and Krishnamurthy. The CBI claimed it had seized Rs 3.05 lakh from Vardhan's house, and Rs 69 lakh and blank cheques for Rs 85 lakh from the residence of Krishnamurthy.

It is also learnt that Ramachandran is likely to resign in the wake of the arrest of his personal assistant. The sources say the minister is expected to put in his papers shortly after it was considered at the highest levels that his continuance in the government has become untenable in the wake of CBI action.

Earlier in the day, Ramachandran while speaking to reporters on his return from Chennai, said he has no intention to resign from his post as his "conscience is clear."

 


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Union state finance minister''s PA arrested for accepting bribe