Bribery allegation against Railway Minister's nephew: Pawan Bansal denies involvement

New Delhi: Railway Minister Pawan Kumar Bansal's nephew has been arrested by the Central Bureau of Investigation (CBI) for allegedly accepting a bribe of Rs. 90 lakh from a member of the Railways Board who allegedly wanted a better position. The minister, however, has denied involvement in the alleged scam.

In a statement released today, Mr Bansal said he "had no knowledge or clue about the matter at all." He also said he was looking forward to an "expeditious" investigation by CBI in the matter and insisted that his relatives "do not and cannot meddle in my official functions or influence my decisions." (Read full statement)

The minister's nephew, Vijay Singla, was arrested in Chandigarh, where he lives, for accepting Rs. 90 lakh in cash from a man named Manjunath who was the middleman for Mahesh Kumar, who was arrested in Mumbai.

Mr Kumar was recently promoted and made a member of the top governing body of the Railways, which handles massive contracts. He joined the Railways Board in Delhi as a Member Staff on May 2. But sources say he allegedly wanted to "buy" a "more lucrative" post within the board which has seven members who are considered equivalent to Secretary in Government of India. Earlier, Mr Kumar was posted in Mumbai as the General Manager, Western Railways.

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According to sources, the minister's nephew and the middlemen had initially demanded Rs 10 crore from Mr Kumar, but after negotiations, they agreed to help him in return for Rs 2 crore. Mr Singla was arrested last evening allegedly while he was accepting the partial payment of Rs 90 lakh. He owns a construction company in Chandigarh.

The arrests followed a tip-off after which the CBI tracked Mr Kumar's movements and phone calls. 

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Mr Bansal was made Railways Minister a few months ago after Mamata Banerjee pulled her Trinamool Congress out of the ruling coalition. Trinamool leader Derk O'brien has termed the arrest "shameful for the Congress."

The main opposition party, the BJP, also attacked the government and demanded that Mr Bansal be sacked.