The CBI sources said they have arrested Joint General Manager Bikas Ranjan Daschaudhary, who holds rank equivalent to a Brigadier, Milind Govilkar of private firm Sankalp Consumer Products Limited and two others in the alleged graft case.
The case was registered on the information that Sankalp Consumers Products Pvt Ltd allegedly acted as marketing arm and representative of number of companies in an unauthorised manner against the policy laid by CSD, they said.
Sankalp through Govilkar and officials of CSD allegedly entered into criminal conspiracy with each other and in furtherance of the said conspiracy manipulated various demands of CSD items in favour of the clients of Sankalp, the sources said.
They said the company was allegedly favoured by CSD officials at various stages in CSD such as introduction of items, price revision, delayed and excess supply, demand creation, budget allocation etc.
Such favours were allegedly extended in lieu of huge illegal gratifications to CSD officials.
On a tip-off, CBI arrested Daschaudhary and Govilkar red-handed while they were allegedly receiving bribe of Rs 1.5 lakh at former's residence, they said.
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"Searches were also conducted at 20 places in the country at the official and residential premises of the accused persons and the suspected officials. During the search incriminating documents, huge cash and jewellery were recovered," CBI said in a statement.
CSD operates from its Head Office at Mumbai and has depots all over India to provide consumer goods to the active duty and retired personnel of Army, Navy and Air Force.