VK Sibal's residence was raided by the CBI on Jul 1 (today). Raids have also been conducted at various places across Noida, Dehra Dun and New Delhi.
Sibal has been accused of favouring oil companies including a foreign entity and Reliance Industries Limited (RIL). A inquiry was ordered into the case in Nov 2009 and there are claims that Sibal will be arrested soon.
According to reports that Sibal favoured the RIL and allowed the company to raise its ' developmental costs'.
Sibal has been charged of quadruplicating the inflating from $2.47 to 8.84 billion in the capital spending of RIL project in Krishna Godavari Basin.
The reports also said that the increase in the expenditure directly affected the government's revenues.
Sibal served his term as the Director General, Hydrocarbons between the years 2004-2009.