RJD leader Lalu Prasad. (Express file photo by Dilip Kagda)
LAST YEAR, the CBI’s Economic Offences Division overruled objections from its legal wing, the Directorate of Prosecution, to press for an FIR against RJD leader Lalu Prasad, claiming that as Railway Minister in 2006, he facilitated the transfer of two railway hotels to a private firm in exchange for prime land in Patna.
But the Directorate of Prosecution, while drawing up a list of the alleged conspirators to be booked for the irregular transfer of the hotels, dropped the name of one of the two IRCTC officials named by the Economic Offences Division in its preliminary enquiry. The officer not included in the list was the then IRCTC Director (Tourism), Rakesh Saksena. It gave no reason for leaving out Saksena.
Although several CBI officers pointed out the omission, the FIR — without Saksena’s name — was registered on July 7, 2017 and was followed by searches at the offices and homes of the accused.
The CBI booked the following for criminal conspiracy, cheating and criminal misconduct: Lalu Prasad, his wife Rabri Devi, their son Tejashwi Yadav, Delight Marketing Company Pvt Ltd’s Sarla Gupta (wife of Prem Chand Gupta), Vijay Kochhar and Vinay Kochhar (directors of Sujata Hotels Pvt Ltd), M/s Lara Projects LLP and P K Goel, the then Managing Director of IRCTC.
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Incidentally, Saksena was the official who initiated the proposal that the development, maintenance and operation of two railway hotels — one each in Ranchi and Puri, which were later awarded to Sujata Hotels Pvt Ltd of the Kochhars — be done through a public private partnership.
In July 2006, Saksena recommended that the hotels be handed over to private firms which had a minimum annual turnover of Rs 5 crore from such operations in the last three years, net worth of Rs 2 crore, a positive net profit in two out of the last three fiscals and experience of operating and maintaining at least a two-star hotel in the last five financial years.
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These qualification norms were promptly approved by Goel, the then IRCTC Managing Director.
But before a tender notice could be issued for these hotels, Saksena’s Tourism wing proposed in October 2006 that the minimum turnover criteria be lowered from Rs 5 crore to Rs 3 crore and the net worth from Rs 2 crore to Rs 1 crore. This too was immediately approved by Goel.
No advertisement was issued to invite private sector response for these hotels but the sale of their tender documents was started through a passing reference in a tender notice on October 24, 2006 for a separate set of Rail Ratna Budget Hotels.
The eligibility conditions for these hotels came nine days later, through an advertisement which fixed November 30 as the last date for purchase of tender documents. But before the deadline got over, Saksena initiated a note for amendment of the eligibility conditions.
On November 13, 2006, he proposed reducing the two-star category status to two years from the earlier five years and proposed that it was not necessary that this certification be only from a “competent authority”. The accreditation could come from the bidder as well “if official certification classification had not been taken or applied for”.
These changes, done in the name of ensuring largescale participation by the hospitality industry, were approved by Goel and announced two days later.
A CBI analysis of bid documents submitted by Sujata Hotels Pvt Ltd showed that it was not eligible for the contract as per the pre-conditions announced on November 3 since “it did not have the two-star status during the preceding four years”.
“It was only after eligibility conditions were changed that Sujata Hotels submitted their bids with self-certification that it had two-star category status in the preceding two years. Enquiries from Ministry of Tourism reveal that no such certificate was issued to Sujata Hotels for 2002-06,” a CBI report said.
“It is pertinent to note that there is no reasoning or logic for change of the criteria in respect of ‘Star Category’ during the course of the tender process stated in the files,” it said.
Moreover, it found that the entire process of award of tender “appears to have been rigged and mangled by the officers of IRCTC in favour of Sujata Hotels” as bid document of a competitor was found missing as well as the list of 15 firms that bought the tender documents for the hotel in Ranchi and 16 firms for the one in Puri.
Though the CBI found that “nothing has come on record to show that the company which benefited on account of the change in eligibility criteria extended any favours to the public servants of IRCTC”, it included Goel and Saksena as co-conspirators.
On July 5, 2017, the legal wing retained Goel’s name in the list of accused but dropped Saksena. It gave no reason. Two days later, the CBI registered a corruption case and conducted searches. Eight months later, the CBI is yet to file a chargesheet in the case.
Saksena went on to become Divisional Railway Manager in Delhi where he remained until 2009. In 2013, he became Managing Director of Mumbai Railway Vikas Corporation from where he retired in 2015.
Reached for comment Friday, Saksena, who now lives in Bhopal, said he did not know anything about the CBI case. “I have no knowledge about this. Besides, I am currently in Bombay, I cannot speak to you,” he said.