CBI registers graft case in phone interception system purchase

The CBI has registered a case of corruption in the purchase of phone interception systems worth Rs 41 crore, from a German firm, by Electronic Corporation of India Limited for investigation agencies of the country.
Former senior officials of Electronic Corporation of India Limited, a government company, the German firm and an ex-army middlenman have been booked by the CBI in the case.
The ECIL purchased 12 interception and monitoring systems for GSM phones from German company ELD Industrie for Rs 41 crore between 2004 and 2010, the CBI said in its FIR.
The vigilance officer of the ECIL had flagged certain irregularities in the matter of GSM interception and monitoring systems for supplying to various law-enforcement agencies, it said.

"Vigilance enquiry also opened up further inputs as to the very genuineness of the existence of ELD Industrie Holding, KG, Germany. Further the said CVO, prima facie, suspected commission of criminal fraud, forgery, cheating etc," the agency has alleged in its FIR.
Based on the report from the vigilance office, the CBI had conducted a preliminary enquiry in March, 2017, which prima facie revealed criminal misconduct on part of the ECIL officials and various private companies involved in the deal, it said.

The enquiry revealed use of forged documents by accused persons and purchase of GSM interception and monitoring system from an unqualified supplier instead of original equipment manufacturer causing loss to the ECIL.

The agency has now registered a case of criminal conspiracy, criminal misconduct, cheating and forgery against former ECIL officials K Hari Satyanarayana, Senior DGM; V Satyanarayana, General Manager; Muddagouni Vishny Murthy, DGM; Gadi Naga Venkata Satyanarayana, Director; and Katragadda Subba Rao, DGM (Purchase), all retired.
The CBI has also booked part time consultant of Schleicher India Col. Suresh Bhatia (retd) who had represented ELD India and Hartron Case Communications Pvt Ltd; E Leopold Dieck, owner of ELD Industrie Holding, Germany; the company ELD Industrie, New Delhi-based companies Hartron Case Communication, Binary Network Solutions and Net4 Communications Pvt Ltd; and German national Nadine Rothweiler, the then Executive Secretary to Dieck.