CBI searches seven places in connection with BHEL fraud

Bhopal: The CBI searched seven placesassociated with officials of Bharat Heavy Engineering Corporation (BHEL) and private vendors on Friday, for allegedly submitting inflated bills causing a loss of Rs 59.8 lakh to the company.

"After obtaining search warrant from the Special CBI court, searches were conducted at seven official and residential premises of accused public servants and private persons at Bhopal," a CBI release issued here said. Various incriminating documents were seized during the searches and these are being scrutinised, the release said.

Searches at residential premises of one of those accused, who is a Grade II employee, has prima facie revealed assets disproportionate to his known sources of income, the release said. The CBI had registered a case on July 7 under Sections 120-B 468, 471 of the Indian Penal Code and Section 13(2) read with Section 13 (1)(d) of the Prevention of Corruption Act against four BHEL officials and private vendors who allegedly entering into a criminal conspiracy in 2008-2013.

Allegedly, they managed to manipulate the Material Management Computer System to facilitate excess payment against purchase orders favouring the above vendors, it said. Vendors allegedly submitted inflated bills matching manipulated data, thereby causing a loss of Rs 59.8 lakh to BHEL, the CBI release said.