Delhi LG VK Saxena to sue AAP leaders for accusing him of corruption

NEW DELHI: Delhi L-G VK Saxena has decided to take legal action against Aam Aadmi Party (AAP) leaders Saurabh Bharadwaj, Atishi, Durgesh Pathak and others for the allegations of corruption levelled by them and attributed to his tenure as chairman of Khadi and Village Industries Commission (KVIC), Raj Niwas sources said on Wednesday.
AAP had alleged on Monday that the LG had got Rs 1,400 crore of demonetised currency exchanged from banks through his staff in November 2016 while heading KVIC. The party has demanded an investigation by the CBI and Enforcement Directorate besides asking for immediate removal of the LG.
Sources said the LG has taken a serious view of the allegations which he has termed "blatantly false, defamatory and obviously diversionary" and has decided to take legal action against them.
AAP sources, meanwhile, said that everyone accepts that a massive money laundering scam had taken place in KVIC during the chairmanship of VK Saxena. They claimed that two witnesses have given a signed statement against Saxena but the CBI never made him an accused or called him even once for probe.
Why is LG resisting investigation if he has nothing to hide, asks AAP
An AAP functionary said the party is only demanding that Saxena's role in this scam be thoroughly investigated and till that time he should not occupy the post of LG of Delhi and resign now. "If he has nothing to hide, why is he resisting investigation? The law should apply equally to everyone," he said.
The CBI has already inquired into the case at the behest of KVIC and filed the chargesheet as well, a source pointed out.
An official of the LG Secretariat said that following the demonetisation of Rs. 500 and Rs. 1,000 currency notes on November 8, 2016, KVIC had issued a circular the next day stating that the old currency notes will not be accepted by any sales outlets and establishments. "It came to be known that certain demonetized notes were deposited in the account of Khadi Gramodyog Bhavan, New Delhi, on various dates," he said. The issue was immediately referred to the chief vigilance officer (CVO) of KVIC for investigation and action, he said, adding that a joint surprise check was conducted along with CBI.
After a preliminary investigation, four Khadi Gramodyog Bhavan officials, including a manager and a sales in-charge, were suspended and transferred on the recommendation of the CVO on April17, 2017.
In its report, the CVO had stated that on November 10 and December 31, 2016, that a total amount of Rs 22.17 lakh was deposited in the Khadi Gramodyog Bhavan bank account in Delhi, including 2,140 notes of Rs 500 and 1,147 notes of Rs 1,000, the official said. On May 29, 2017, KVIC informed the CBI about the preliminary investigation done by the CVO and action taken against the four officials, he said. The official said that after CBI concluded its investigation, the involvement of two head cashiers in depositing the demonetized notes came to light and an FIR was registered against them on July 10, 2017. He said a scrutiny of the cash deposit slips of Khadi Gramodyog Bhavan revealed that Rs. 5.1 lakh was in legal tender and the total amount of demonetized currency notes was Rs. 17.07 lakh.
He said the issue is regarding this amount of Rs. 17.07 lakh, which AAP is claiming to be a scam of Rs. 1,400 crore.
"The people on the basis of whose statements these allegations are being manufactured against the LG are the two people who have prima facie been found to be engaged in corruption at KVIC after demonetization by CBI," he said.