KVIC complaint results in CBI FIR against Khadi officials for `3 cr embezzlement

New Delhi: Keeping with its strict zero-tolerance policy against corruption and corrupt practices of staff and officials of the Khadi and Village Industries Commission (KVIC), the Khadi board has sent in a complaint to the CBI against its own officials in the Ranchi Unit, who had allegedly released nearly Rs 3 crore to unidentified people, prompting the agency to register a case and probe four people and a Chennai-based firm.

According to the CBI, former deputy director RB 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, and released payments to the tune of Rs. 2.85 crore to "individuals of dubious identities".

The CBI registered a case after receiving 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.