Last year in June, CBI had started a preliminary enquiry against Kul Bhushan, Member (electrical) Railway Board, for allegedly favouring a private builder in awarding contract to develop a railway land.
They said Bhushan allegedly relaxed norms which helped the builder grab the contract worth several crores of rupees.
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A senior CBI official said although there was no evidence against Kul Bhushan and agency has decided to close the enquiry against him, it will recommend departmental action against others.
The enquiry apparently became a stumbling block for Kul Bhushan, who was the senior-most member, in the race for the post of Chairman, Railway Board .
The sources said the agency had started the enquiry as it came to know about purported favours during its probe in the Rs 10 crore Railway cash-for-posting scandal allegedly involving Bansal's nephew Vijay Singla and the then member (Staff) Mahesh Kumar.
Kumar allegedly wanted to be elevated to the post occupied by Kul Bhushan once he is appointed as Chairman, Railway Board, CBI has said in its FIR in the case against Singla.
They said during the questioning of the accused and scanning of files related to Bhushan, the agency came to know about these purported favours which have now been found to be baseless.
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