CBI initiates probe into VW deal

The Central Bureau of Investigation(CBI) has formally initiated probe into the siphoning off the Rs 11.6 crore paid towards equity for the car manufacturing project proposed by the German car major Volkswagen in January 2005.

CBI joint director R N Savani, who is head of the south operations, based at Chennai, met the state government officials including chief secretary Mohan Kanda on Friday and sought cooperation in the inquiry.

It may be recalled that the state government has sent all the details pertaining to the Volkswagen deal to CBI after it had decided to request the Government of India for a probe.

Officials had assured full cooperation to the visiting CBI official in the ongoing inquiry. It is still not clear as to whether the probe is limited only to the missing money or the terms of reference of CBI probe also include other issues such as alleged procedural lapses in depositing the money into Vasishta Wahan's account.