The court granted bail to M S Chalia, an Indian Railway Traffic Service (IRTS) officer, on a personal bond of Rs 50,000 with one surety of the like amount observing that keeping him in judicial custody would not serve any purpose.
However, Special Judge Vinod Kumar dismissed the bail plea of businessman Sharan Bihari Aggarwal saying that he was the "direct beneficiary" of the transactions and investigation about the approximately Rs 28 crore cash recovered during the searches was going on.
CBI had opposed Chalia's bail plea saying that he had abused his official position as he did not act despite several letters sent by IRCTC to supply Rail Neer and supply of other brands of water resulted in a loss of Rs 6.25 crores to the railways.
Besides these two accused, senior rail officer Sandeep Silas, also an IRTS officer, was also arrested by CBI in connection with the case. He is at present in judicial custody.
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