Rail Neer scam: Railway Ministry likely to suspend two officials

The CBI officials have also seized Indian Rupees 20 crores in cash on the first day of raids at 13 locations against two former Northern Railways officials and seven private companies in Delhi and Noida. The directive followed allegations from several outfits that once used, these wrappers were found lying on roads.

The former officials allegedly showed favour to private firms in supply of cheap packaged drinking water instead of Rail Neer.

The suspended officials are M S Chalia, chief claims officer and Sandeep Silas, chief project manager at FOIS, a Northern Railway official said.

Silas has served as the private secretary of a former Union Minister. These companies included R K Associates Private Limited, Satyam Caterers Private Limited, Ambuja Hotel and Real Estate, P K Associates Pvt Ltd, Sunshine Private Ltd, Vrindavan Food Products and Food World under the charges of Prevention of Corruption Act. The recovery of Rs 20 crore cash was made from the residences of Shyam Bihari Agrawal and his sons Abhishek Agrawal and Rahul Agrawal, all owners of R K Associates and Vrindavan Food Products.

Suresh Prabhu also added, there would be “Zero tolerance to corruption” and Railway Board should take immideate action against the two officers who involved in this Rail Neer Scam.

One of the CBI officials Devpreet Singh said, “Generally, the contractors are supposed to purchase the Rail Neer bottles for Rs. 10.50 from the Indian Rail Catering and Tourism Corporation or IRCTC and sell them at Rs. 15”.

In any case, the private firms, with a specific end goal to make “undue additions”, supplied shoddy bundled drinking water brands other than Rail Neer, which were accessible in the business sector at Rs 5.70 to Rs 7 a container. The agency recovered 20 crore rupees in cash and a large number of incriminating documents.