Chennai

CBI probing contract fraud by railway official

CBI has started a probe against a Deputy Chief Engineer (Construction) of Southern Railway, Tiruchy for conspiring with a railway contractor to create false contract records to claim additional amount last year.

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Chennai

According to CBI, Madurai, suspect Samson Vijay Kumar entered into a criminal conspiracy with second suspect Premkumar Jayaraman, railway contractor from Namakkal, and demanded illegal gratification of Rs 1.5 lakh for passing a bill. In furtherance of the conspiracy, records of said contract work were falsified to claim an additional Rs 2 lakh, of which Rs 1.5 lakh went into the pocket of the railway official. Rs 50,000 was transferred by Prem Kumar to Ganesh of Ambattur, Chennai as instructed by the railway official.

 CBI further notes that Samson, to cover up a loss of Rs 1.7 crore in another contract, directed Premkumar, who was a contractor in the same project, to falsify the project in a such a way to show a profit of Rs 4.3 crore. The CBI last week registered a case against the two under IPC sections for cheating, conspiracy and also under the provisions of Prevention of Corruption Act.

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