CBI: Large-scale fraud in sale of Bhiwani public property

Just about five months after the Central Bureau of Investigation was asked to conduct a preliminary inquiry on a petition alleging squandering, encroachment, selling and misappropriation of “huge public property” in Bhiwani, the investigating agency – among other things – said the probe indicated “widespread misuse allowing large-scale fraud”.

The CBI was on May 7 directed by the Punjab and Haryana High Court to conduct a preliminary inquiry and submit its report within four months. The directions by Justice Vinod S Bhardwaj came on the petition filed against the State of Haryana and another respondent by Sushil Kumar Verma.

Justice Bhardwaj’s Bench had then observed it had perused the file and gone into the nature of the allegations levelled, and the apprehension expressed by the petitioner about lapses committed by the investigating agency.

It was alleged that they were deliberately misdirecting the investigation to extend benefits to persons who were beneficiaries in ensuring “disposal of the State property and misappropriation of the revenue of the Municipal Council”.

Justice Bhardwaj had added the allegations apparently were required to be examined independently. “The allegations have been levelled against officers who have potential to destroy evidence and influence independent investigation. Huge public property is alleged to have squandered, encroached, sold and misappropriated,” the court had observed.

In its status report into five FIRs registered at different police stations in Bhiwani, the CBI among other things stated that the funds allocated for municipal development were supposed to be managed strictly within designated accounts. But the inquiry revealed widespread misuse allowing large-scale fraud.

The CBI said that its inquiry identified that a significant amount of government funds from MC Bhiwani were transferred to shell companies. The report added that issues not properly investigated by the Haryana Police, as revealed during the CBI inquiry, included the role of shell companies and firms.

Referring to another FIR, it stated that the accused persons, including officials of MC Bhiwani and private individuals, hatched a conspiracy and issued fake receipts by editing already issued genuine receipts.

Funds diverted to shell companies

The CBI said its inquiry identified that a significant amount of government funds from MC Bhiwani were transferred to shell companies.