KVIC scam: CBI registers case to probe embezzlement of around Rs 3 crore funds

New Delhi, Nov 18 () An amount of nearly Rs three crore has allegedly been released by some officials of the Ranchi unit of the Khadi and Village Industries Commission (KVIC) to unidentified people, prompting the CBI to lodge a case against four persons and a company, and launch a probe.

According to the Central Bureau of Investigation (CBI) case filed before a Ranchi special court, former deputy director R B Ram (now deceased) and the then KVIC executive Sunil Kumar allegedly entered into a criminal conspiracy with certain individuals and violated company procedures, including the General Financial Rules (GFR), and released payments to the tune of Rs 2.85 crore to "individuals of dubious identities".

The CBI registered the case on a written complaint from a senior official of the KVIC, which functions under the Micro, Small and Medium Enterprises Ministry.

According to the central agency, the financial irregularities were committed between 2016 and 2018 as found by an internal committee of the KVIC.

Funds to the tune of over Rs 1.57 crore, meant to be spent under schemes such as the Khadi Reform and Development Programme, the Honey Mission, the Prime Minister's Employment Generation Programme were allegedly released to two Chennai-based firms.

Similarly, an amount of Rs 42.60 lakh was allegedly released from the KVIC's renovation, publicity and inventory management to an individual.

Later, two more payments of Rs 23 lakh and Rs 62.82 lakh were made to two individuals for the publicity of Khadi reforms and development and procurement of raw silk material. UJN SKL RC