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December 26, 1997

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Urea scam accused chargesheeted



The Central Bureau of Investigation today filed a chargesheet against former prime minister P V Narasimha Rao's relative B Sanjeeva Rao, former Union minister Ramlakhan Singh Yadav's son Prakash Chandra and seven others in the Rs 13.3 million urea scam.

Among the others chargesheeted are Turkish firm Karsan Ltd's executives Tuncay Alankus and Cihan Karanci, former National Fertilisers Limited managing director C K Ramakrishnan, its former executive director Dilbagh Singh, Karsan's Indian agent M Sambasiva Rao, one D Mallesam Goud and Brazilian national A E Pinto who is under arrest in London in connection with the case.

The chargesheet was filed in the court of Chief Metropolitan Magistrate Prem Kumar, to be forwarded to Central Bureau of Investigation special judge Ajit Bharihoke for consideration on January 12.

The accused have been charged with criminal conspiracy under Section 120 B read with Sections 409 and 420 of the Indian Penal Code and under various sections of the Prevention of Corruption Act.

According to the chargesheet, NFL paid the entire contract amount of $ 37.62 million in advance on November 29, 1995, for the purchase of urea. But the accused shared the amount amongst themselves without honouring the contract.

Alankus "dishonestly'' transferred $ 28.10 million of the payment to his personal account with Pictet Bank, Geneva, $ 1.1 million to Karanci's account in the same bank and $ 4 million to a Dubai-based company, the chargesheet said. The $ 4 million was subsequently brought to India through hawala channels and paid to Sambasiva Rao, Sanjeeva Rao and Goud, the CBI said.

He also transferred another $ 200,000 to Sambasiva Rao's bank account in Hyderabad.

Alankus remitted another $ 2 million to a company in the United States and $ 342,000 to one P Papaghikas in Greece, the CBI said.

Pinto, one of those who brokered the deal, was paid $ 1.2 million in two instalments, the chargesheet said.

While Alankus and Karanci have been in custody in New Delhi since October 3, five other accused were released on bail after being in custody for three months. Goud is yet to be arrested.

The 13-page chargesheet has been supported by the statements of 159 witnesses. The CBI also provided to the court the sanction order to proceed against C K Ramakrishnan.

The chargesheet maintained that sanction orders for the prosecution of D S Kanwar and Prakash Chandra Yadav were not required. For, Kanwar had already retired and Yadav was no longer a public servant.

According to the chargesheet, the contract amount of $ 37.62 million was not remitted to the account of Karsan Ltd with Pamuk Bank. Instead, it was sent to some other account.

The amount was subsequently ''returned to India dishonestly with a view to giving an impression that NFL did not fulfil the terms and conditions of the contract although they wanted to misappropriate'' the amount.

EARLIER REPORT:
Urea accused remanded to CBI custody

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