Monday 31 October 2011

HUDCO Scam, The CIC Report

The HUDCO Scam siphoned crores of rupees as loan. Investigations revealed that there was bribes paid to officials to get these loans meant for upliftment of the poor. The Right to Information Act helped to unveil the mystery behind the Central Vigilance Commission proposing and the CBI disposing in the Rs1,300-crore HUDCO scam. Showing signs of a nexus within the affluents within the government body.

The Central Information Commission directed the CBI to provide the inquiry report on closing investigation in fourcases where the CVC found "adequate evidence of paying bribes" to mobilise funds from Housing and Urban Development Corporation (HUDCO) in 2006. The Central Bureau of Investigation had closed the case saying there was not enough evidence to proceed with the probe. This resulted in the housing and urban development ministry submitting a closure report in Supreme Court in 2007. The corporation had invested Rs. 950 crore in West Bengal Infrastructure Development Finance, Rs. 200 crore in Himachal Pradesh Infrastructure Development Board and Rs. 150 crore in Vidharbha Irrigation Development Corporation.

There were allegations that money was paid to get these funds from HUDCO. “It appears that CVC found clear evidence showing bribes were taken. However, the CBI and the (Housing and Urban Development) ministry have come to the conclusion there is no wrong doing. If corruption is to be curtailed.... citizens need to get information of this nature," Information Commissioner Shailesh Gandhi said.

The CBI's information officer Pradeep Kumar had refused to provide information to RTI applicant AN Gupta on the ground that the probe report was confidential. The investigations were closed in 2007 and that SC was informed about it. Gandhi said the information officer had wrongly applied the exemption clauses and said "mere fears without any justification" could not be grounds for denying the citizen's fundamental right. The commission also said the Kumar had failed to justify the reasons for denying information as stipulated under the RTI Act.

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