The Enforcement Directorate (ED) on Thursday attached movable assets worth Rs 17.55 crore of R.K. Associates and Hoteliers Pvt. Ltd, Satyam Caterers Pvt. Ltd, and others in a scam related to Rail Neer.
The ED initiated the investigation under Prevention of Money Laundering Act on an FIR registered by the CBI against Railway officers and private caterers for allegedly supplying other brands of drinking waters instead of "Rail Neer" brand of Indian Railway Catering and Tourism Corporation (IRCTC) in Rajdhani and Shatabdi Trains and thereby causing losses to the government exchequer.
The investigation conducted by the CBI revealed that private caterers namely R.K. Associates and Hoteliers Pvt Ltd., Brandavan Foods Products Ltd., Sunshine Caterers, Satyam Caterers Pvt Ltd., Food World, R.D. Sharma, P.K. Delicacies, Doon Caterers, Ambuj Hotels and Real Estate were mandated to supply Rajdhani and Shatabdi Trains with IRCTC's Rail Neer water bottles.
But instead, they supplied other packaged drinking water brands in connivance with the officers of the Railway Department and caused loss of Rs 19.55 crore to the government exchequer during the period January 2013 to December 2014.
Further investigation revealed that the caterers had laundered money into their bank accounts totalling Rs 17.55 Crores.
The CBI later filed a charge sheet against the aforementioned companies/Licensees and the officers of Railway Department under section 120-B (Punishment of criminal conspiracy) and 420 (Cheating and dishonestly inducing delivery of property) of Indian Penal Code, and Section 13 (Criminal misconduct by a public servant) of Prevention of Corruption Act, 1988.
The investigation is still underway.
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