Corporate espionage: CBI conducts more raids in Mumbai

Sources said more government officials, corporate houses could be involved

Widening its probe in an alleged document leak case, the Central Bureau of Investigation (CBI) on Friday arrested another government official and a partner with a Mumbai-based law firm.

Ramniwas, an assistant in the Foreign Investment Promotion Board (FIPB) was nabbed for allegedly leaking  confidential FIPB documents. Another was Paresh ChimanLal Buddhadev, a partner in Chitale and  Associates, sources said. Buddhadev was allegedly trying to destroy two sacks of documents in his office. Some have been recovered by CBI, sources added.

According to sources, more government officials and companies are under the CBI’s scanner. Sources said the agency recovered confidential government files related to foreign investment proposals while conducting raids at Chitale and Associates and chartered accountant Mitesh J Majithia’s office in Mumbai.

On Thursday, the CBI had arrested three persons, including two finance ministry officials.

For allegedly selling confidential government documents to a chartered accountant, which was passed on to corporate houses. The documents seized during the raid were related to proposals before the Foreign Investment Promotion Board (FIPB), according to sources.

The two government officials arrested on Thursday - Ashok Kumar Singh, under-secretary in the Department of Disinvestment and Lala Ram Sharma, a section officer in the Department of Economic Affairs - were remanded to CBI custody till March 17 by a trial court in Delhi on Friday.

The agency told the court that the third accused, Khemchand Gandhi, a Mumbai-based chartered accountant was arrested from Mumbai on Thursday and would be brought to Delhi in transit remand.

According to CBI sources, “there is a likelihood of more government officials being involved”, as the agency has found the initial level of decision-making was “allegedly compromised” by the sale of documents at “not a very high premium.”