Business Standard

Transport scam: Bizmen accused of siphoning crores denied bail

Image

Press Trust of India New Delhi
A Delhi court today denied bail to two businessmen arrested for allegedly siphoning off crores of rupees in fitness tests of commercial vehicles in the national capital in connivance with the transport department.

Special judge Narottam Kaushal dismissed the bail pleas of Nitin Mahawat and Puran Chand, who were arrested by the Anti-Corruption Branch of Delhi government on February 25.

Mahawat, director of ESP India, and Tamta, CEO of ESP India' alliance partner's Tambros India Ltd, were arrested in a case registered on the complaint of RTI activist Vivek Garg alleging the contract for lane test of commercial vehicles for fitness certificates was given by the Delhi government to ESP India without inviting any tender.
 

The duo had sought bail saying they have been made scapegoat and there was no such illegality in their operations, which only served public good.

The prosecution opposed their bail accusing Mahawat and Tamta of "grabbing the work of fitness test of commercial vehicles from the government by misleading the cabinet with the connivance of officials of the transport department and siphoning off crores of rupees".

Additional public prosecutor Rajiv Mohan also submitted that the duo had been charging fee for several tests of which only few tests were actually conducted. Besides the I&C test, the accused had promised to carry out CNG leakage and loaded lode test for Rs 1,600 per vehicle but the same were never carried out.

He also said the transport department gave "undue favour" to ESP India in work of laying eight additional test lanes "as till today two additional test lanes could have been made functional while advance payment for eight lanes has already been disbursed".

Garg's counsel Jairam and Ajay Goel also opposed their bail saying they have been arrested only after a complaint was filed in the court and many more accused are yet to be nabbed.

The ACB had also said many officials in transport department were hand in glove with the accused persons and more arrests are likely to be made in the near future.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 05 2013 | 6:15 PM IST

Explore News