CBI to question TN health minister in alleged gutka scam

Image
Press Trust of India New Delhi
Last Updated : Dec 14 2018 | 8:40 PM IST

The CBI has summoned Tamil Nadu Health Minister C Vijaya Baskar and former state minister B V Ramanaa for questioning in connection with the alleged gutka scam on Saturday, officials said.

Three other people have also been asked to appear before the agency, they said.

The questioning will be conducted in Chennai, and a CBI team will reach the city Friday night, the officials said.

The Tamil Nadu government had banned gutka (a concoction of tobacco and pan masala) in 2013, and it is being alleged that bribes were paid to bureaucrats, ministers and politicians to allow its manufacturing and sale.

The scam came to light on July 8, 2017 when income tax sleuths raided the godown, offices and residences of a Tamil Nadu-based pan masala and gutka manufacturer who had been facing charges of tax evasion to the tune of Rs 250 crore.

The promoter-directors of Jayam Industries -- A V Madhav Rao, Uma Shankar Gupta and Srinivas Rao -- allegedly sold MDM brand gutka by influencing officials, politicians and regulatory authorities, the agency officials said.

Jayam Industries was rechristened to Annamalai Industries to continue the sale, they said.

During the raids, the department had seized a diary containing names of those who were allegedly paid bribes by the gutka manufacturers.

On the plea of a DMK leader, the Madras High Court had sent the case to the CBI in April.

This was challenged in the Supreme Court by a Tamil Nadu health official but the apex court sided with the order of Madras High Court and asked the agency to register a case.

The agency had registered an FIR against unidentified officials of the Tamil Nadu government, the Central Excise Department and the Food Safety Department in May.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 14 2018 | 8:40 PM IST

Next Story