CBI files cases against former finance secy Arvind Mayaram, others

Agency searches multiple premises of the former bureaucrat in the alleged currency printing corruption case

The Central Bureau of Investigation (CBI) has filed a first information report against former finance secretary Arvind Mayaram for alleged irregularities in a currency printing case. He was then the secretary in the Department of Economic Affairs (DEA).

The federal agency, following the case, conducted searches on Thursday at multiple premises belonging to Mayaram in Delhi and Jaipur. 

The CBI alleged that Mayaram, in 2013, had given an “illegal extension” to UK-based firm De La Rue International for supplying exclusive colour shift (security thread) for Indian bank notes for a period of five years. It alleged that the undue favour Mayaram provided to the British firm resulted in it making wrongful gains at a loss to the Indian exchequer.

The case, registered on January 10, alleged criminal conspiracy and cheating among the former bureaucrat, UK firm, and unknown officials of the finance ministry and the Reserve Bank of India (RBI).

The agency has alleged that the then finance minister had authorised the RBI to enter an exclusivity agreement with the suppliers of exclusive security features on behalf of the government, which was signed with De La Rue on September 4, 2004. 

The contract was extended four times till December 31, 2015.

The agreement with De La Rue International specifically mentioned that the company had developed an exclusive India-specific green to blue colour shift clear text MRT machine readable security thread for use in Indian banknote paper as a security feature and for which the company holds exclusive manufacturing rights.

The CBI found that the exclusivity agreement was signed by PK Biswas, former executive director of RBI, without verifying the patent claim of De La Rue. “Enquiry has also revealed that the contract agreement did not have any termination clause,” the agency said. 

Both the RBI and the Security Printing and Minting Corporation of India (SPMCIL) submitted their reports about the non-possession of the patent by the company on April 17, 2006, and September 20, 2007, respectively.

The CBI found that the company had filed for the patent in India on June 28, 2004, which was published on March 13, 2009, and was granted on June 17, 2011, which shows at the time of the agreement, it did not have a valid patent.

“Enquiry has further revealed that De La Rue made false claims of holding patent and they did not have any patent for their colour shift thread at the time of presentation in 2002 and their selection in 2004,” the CBI has alleged.

Despite non-possession of the patent, the company kept getting extensions.

The matter was brought to the notice of Arvind Mayaram, as secretary of the economic affairs department, in May 2013 — that the contract agreement with De La Rue had expired on December 31, 2012; therefore, extension cannot be granted legally," the FIR alleged.

Mayaram never apprised the same to the then finance minister, the CBI pointed out, and he extended the expired contract to the UK firm by overruling the security clearance from home ministry and finance minister. 

The CBI enquiry revealed that Anil Raghbeer, signatory of contract agreement from De La Rue, has received Rs 8.2 crore from offshore entities apart from the remuneration paid by De La Rue in 2011,” the FIR alleged.

The CBI had registered a preliminary enquiry in 2018 on the basis of a complaint from the chief vigilance officer of the DEA.

THE CHARGES

• In 2004, govt entered into a three-year exclusivity deal with UK-based De La Rue International
• Contract was to provide exclusive security features on currency notes
• Arvind Mayaram, then secretary in the department of economic affairs, allegedly gave illegal extension to De La Rue despite on expired contract
• He was then
• The contract was extended four times till December 31, 2015
• Alleged undue favour by Mayaram resulted in wrongful gains and loss to exchequer