CBI registers case against Ex-MD of Hotel Corporation of India

New Delhi, Mar 14 (UNI) The Central Bureau of Investigation has registered a case against an Ex-Managing Director of the Hotel Corporation of India for causing undue loss to the Government exchequer in 1999 by periodically extending, in collusion with five other officials then posted with the HCI, the contracts awarded to a private firm without following proper procedure.

The accused - Ex MD R C Aggarwal and five other officials then posted with the FCI - had allegedly hatched and executed a criminal conspiracy, consequent to which contracts for transportation of staff and guests of Hotel Centaur, awarded to a private firm in 1999, were periodically extended without following due procedure, an official release by the CBI said.

Further, on a number of occasions, when the services being provided by the transporter/contractor were found to be deficient, these recommendation for the cancellation of the contracts were ignored by the Ex-MD in connivance with the other officials of the HCI and the contracts continued on one pretext or the other, the CBI said.

In course of the searches at 12 premises of the officials in Delhi, Gurgaon, Mohindergarh, Mumbai and Nagpur, several incriminating documents were recovered.

A case has been registered by the CBI against the Ex-MD and the five officials, besides the transporter/contractor, for offences punishable under section 120-B IPC (Criminal conspiracy) read with Section 13(2) read with 13(1)(d) of the PC Act, 1988 (Abuse of official position as public servants and causing undue pecuniary gain to others).

UNI AR SHB RN1815