INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The CBI has actually submitted an FIR versus former Union financing secretary Arvind Mayaram and conducted searches at his
residence for supposedly supplying excessive favours to De La Rue International, a UK-based firm engaged in supply of special colour shift
security thread for Indian bank notes
This marks an important turn in the investigation introduced in 2017
It is alleged Mayaram given extension to De La Rue in spite of knowing that it had mad e a false claim about having a special security
thread, and without the approval of the financing minister in discrepancy of past precedents
The probe company has actually alleged his action led to undue gains to it and loss to the federal government exchequer
In its FIR, CBI has actually claimed that its investigation had prima facie exposed that a criminal conspiracy was hatched amongst officials
of De La Rue, Mayaram and some officials of RBI and the finance ministry due to the fact that of which unnecessary favours were given to De
Mayaram could not be grabbed comment.He was moved from the finance ministry after the NDA government swept to power in 2014
After retirement, he signed up with as financial adviser to Rajasthan chief minister Ashok Gehlot and has actually become a strong supporter
of the old pension scheme
He had served in the economic affairs department of the finance ministry as joint secretary and took over as secretary in 2012
Searches were carried out in Delhi and Jaipur in connection with the case on Thursday.CBIs query has actually also exposed that a person
Anil Raghbeer, the signatory of the contract arrangement from De La Rue has actually received Rs 8.2 crore from offshore entities apart from
the remuneration paid by De La Rue in 2011
CBI will send him a notice asking to join investigation, a source said.According to the FIR, the department of financial affairs at ministry
of financing had filed a problem in the matter on February 14, 2017 after which a preliminary inquiry was started by anti corruption
(AC-III) unit at CBI.It pertained to fore that the government had actually entered into a contract with M/s De La Rue International Ltd, UK
for supply of exclusive colour shift security thread for Indian currency notes in 2004 for a duration of five years
The contract was subsequently extended four times till December 31, 2015
Based on the enquiry, the then financing minister had actually authorised the RBI in July 2004 to enter into Exclusivity Agreement with
the providers of unique security feature
Thereafter, a sub-committee headed by P K Biswas, executive director, RBI was made up to go through all elements of exclusivity of three
security functions firmed up for Indian Banknote Papers and also to enter into the details of prices, says the FIR adding that the
Exclusivity Agreement was signed by RBI with De La Rue on September 4, 2004
It was stated in para 2 of the Preamble at Page 2 of the agreement that De La Rue had established a special India Specific Green to Blue
colour shift clear text MRT machine legible security thread for usage in Indian banknote paper and De La Rue holds its exclusive
Query revealed that De La Rue had actually made incorrect claims of holding patent and they did not have any patent for their colour shift
thread at the time of discussion in 2002 and their selection in 2004, the FIR states
CBIs questions has actually also exposed that De La Rue requested patent in India in the name of an approach of manufacturing a substrate
having colour shift result just on June 28, 2004
The patent was publicised in March 2009 and it took another 2 years prior to the patent was given to the company which declared to have had
Enquiry has actually revealed that the Exclusivity Agreement was signed by P K Biswas, Executive Director, RBI without confirmation of the
patent claim of De La Rue
The contract agreement did not have any termination clause
Both RBI and SPMCIL on 17.04.2006 and 20.09.2007 respectively sent (to the finance ministry) their reports concerning non-possession of
patent by De La Rue for their colour shift thread but Arvind Mayaram never apprised the very same to the Finance Minister, CBI has actually
said in the FIR.According to CBI, the contract arrangement of De La Rue was regularly extended up until December 31, 2012 regardless of the
fact that it never ever had the patent for the special security thread.On May 10, 2013, it was given the notice of Arvind Mayaram, as
secretary, economic affairs, that the contract agreement with De La Rue had ended on December 31, 2012 and for that reason an extension can
Mayaram went ahead and authorized an extension of another three years of an expired agreement to De La Rue on June 23, 2013, the CBI has
He likewise overthrew the truth that extension can not be granted without obtaining mandatory security clearance from Ministry of Home
Mayaram likewise did not take the approval from Finance Minister for this circumstances whereas, previous three extensions were approved by
the Finance Minister, the FIR declared.
