CBI arrests MD of NRC Ltd in bribery case

The CBI has arrested four people including the Managing Director and Chief Financial officer of the erstwhile National Rayon Corporation in connection with a bribery case for getting a favourable order from Board for Industrial and Financial Reconstruction (BIFR).
Developing a lead, CBI sleuths zeroed in on an residential complex in South Delhi and arrested one person identified as Rajeev Jain while he was allegedly receiving a bribe of Rs 10 lakh from Arun Jain, the Managing Director of the private rayon manufacturing company, now rechristened as NRC Ltd.
CBI arrested both of them last night after which searches were carried out at eight places in Delhi and Mumbai, official sources said today, adding further investigations led the sleuths to the CFO of the company M C Nalvaya and an official of BIFR Suchet Das. Both Nalvaya and Das have been arrested.

All the four were presented before a local court today.
The sources claimed that Jain during his interrogation had alleged that the money was meant for a member of BIFR to get a favourable order for the company.
During the searches, CBI claimed to have recovered some documents and electronic records to suggest that the money was part of the bribe money agreed for a favourable order.

BIFR was set up by the Government under Finance Ministry which determines sickness and expedite the revival of potentially viable units or closure of unviable units.
It was expected that by revival, idle investments in sick units will become productive and by closure, the locked up investments in unviable units would get released for productive use elsewhere.

The stocks of NRC also fell down by five per cent today at Bombay Stock Exchange as the news about the CBI searches and arrests of the top company officials came out.
Emails sent to the company for a reaction remained unanswered so far.