Rail Neer Scam: 3 Accused Sent to Police Custody Till October 23

New Delhi: A special court today sent two senior rail officers and a businessman arrested in connection with the alleged corruption in supply of packaged drinking water in Rajdhani and other superfast trains to five-day CBI custody.

Special CBI Judge Vinod Kumar remanded the three accused to CBI custody till October 23 after the agency submitted they were required to be interrogated to unearth the larger conspiracy and also for recovery of certain documents.

The agency, which had sought six days police custody, said the two public servants -- Sandeep Silas and MS Chalia --were in conspiracy with arrested accused Sharan Bihari Agrawal and instead of taking Rail Neer, they had allowed some private firms to supply water in the trains which resulted in a loss of Rs 6.25 crore to the exchequer.

The agency alleged that searches were conducted during the probe in which approximately Rs 28 crore was recovered out of which around Rs four lakh was counterfeit.

CBI said that accused were not cooperating in the probe and they were required to be interrogated regarding some bank lockers in and outside Delhi and also in Agra.

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The agency said both the arrested public servants, despite having knowledge, had not taken any corrective steps on the issue and they were required to be questioned about the alleged investments which they have made in various companies.

Countering CBI's argument, senior advocate Vikas Pahwa, who appeared for Mr Chalia, told the court that his client was cooperating with the agency due to which he was not arrested on October 16 and 17 when the agency conducted the searches.

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He said the case was of documentary nature and he did not know as to why his client was arrested when he was cooperating with the probe agency.

Mr Pahwa also told the court that there was no flaw in grant of contract for supply of water and if at all there was any flaw, it was in the execution for which his client cannot be held responsible.

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The counsel also argued that CBI has not given them a copy of FIR and none of the grounds given in the remand application showed that police custody of accused was needed.

Silas, a 1984-batch Indian Railway Traffic Service (IRTS) officer, and Mr Chalia of 1987 batch officer were taken into custody on Saturday night along with Agrawal, owner of R K Associates, in connection with the scam.