Committee recommendeds CBI probe into appointment of IFCI's MD

NEW DELHI: A parliamentary committee has recommended a probe by the Central Bureau of Investigation or CBI into the appointment of the CEO and MD of Industrial Finance Corporation of India or IFCI , Atul Kumar Rai.

The panel has found Rai guilty of suppressing facts regarding his appointment in 2007 and recommending a CBI probe into it. Rai was a director in the finance ministry and was also nominated to the IFCI Board.

In its report tabled in the Rajya Sabha, the Committee headed by K Rahman Khan, said, "Rai suppressed factual information pertaining to his appointment as CEO/MD of IFCI."

The committee noted that an investigation should be done into whether undue favour was shown in appointing Atul Rai and CBI probe should find out the facts and fix responsibility at the higher level in the then hierarchy of officers in the finance ministry.

"facts that point towards a definite collusive effort on the part of Joint Secretary and Secretary to accord undue favours to Rai," the report said. Vinod Rai, who is now the Comptroller and Auditor General of India, was the finance secretary when the appointment was made in 2007.

The parliamentary committee of Privileges also found Rai guilty of misbehaving with BJP MP Rajiv Pratap Rudy when he had gone to meet the official to discuss some issue.

In September 2011, the Supreme Court had issued notice to the central government on a plea challenging the appointment of Atul Kumar Rai as the chief executive officer and managing director of IFCI despite his alleged involvement in "serious corrupt practices".