Parliamentary panel recommends CBI probe against IFCI MD

Industrial Finance Corporation of India (IFCI) CEO and MD Atul Kumar Rai is in the dock with a Parliamentary Committee finding him guilty of supressing facts regarding his appointment in 2007 and recommending a CBI probe into it.

The Parliamentary Committee of Privileges also found Rai guilty of misbehaving with BJP MP Rajiv Pratap Rudy when he had gone to meet the official to discuss some issue.

In its report tabled in the Rajya Sabha, the Committee headed by K Rahman Khan, said, “Rai suppressed factual information pertaining to his appointment as CEO/MD of IFCI.”

The Committee observed that Rai was a Director in the Ministry of Finance and was also nominated to the IFCI Board.

Rai, who belonged to Indian Economic Service, had taken voluntary retirement from February 28, 2007 citing personal and family grounds.

It said that Rai gave false declaration and suppresed vital information before taking up the IFCI job.

The Committee said it was, therefore, recommending that its observations relating to Rai’s conduct “be given serious consideration and properly examined for a CBI probe in the whole matter by the government to find out the facts and fix responsibility at the higher level in the then hierarchy of officers in the Department of Financial Services.”

The Committee went into the matter following a complaint by Rajya Sabha member Rajiv Pratap Rudy that Rai misbehaved with him.

Talking to reporters, Rudy said that during investigation by the Committee, “it was found the appointment of Atul Rai as IFCI CEO was manipulated and fraudulent...He had submitted a fraud certificate to the government.”