Special CBI Court Rejects Remand Plea in IRS Officers’ Corruption Case, Grants Bail

Keywords: CBI, corruption case, IRS officers, Chandrapal Singh Chauhan, SEEPZ-SEZ, illegal arrest

In a significant development, a special CBI Court in Mumbai on Wednesday denied the remand plea of the Central Bureau of Investigation (CBI) and granted bail to two senior IRS officers, Chandrapal Singh Chauhan and Varawantkar Hanumantrao, along with four others, in a high-profile corruption case. The court ruled in favor of the defence’s argument, which alleged illegal arrest and procedural lapses by the investigating agency.

Allegations Against the Accused

The CBI Anti-Corruption Bureau had arrested the two officers, posted at SEEPZ-SEZ, Mumbai, and four others for their alleged involvement in a corruption racket. The agency accused the officials of engaging in “collusive corruption” by collecting bribes in exchange for:

• Space allotment in SEEPZ-SEZ.
• Disposal of imported goods without manufacturing.
• Selling duty-free imported goods without paying duties.
• Favouring civil contractors and engaging daily wagers.

The CBI claimed to have recovered incriminating evidence, including:

• Documents of 27 immovable properties worth crores.
• Luxury cars and expensive watches.
• Bags containing bribe money totaling Rs 60,000, along with 22 envelopes stashed with cash allegedly belonging to the accused officers.

CBI’s Case for Remand

The investigating agency sought custody of the accused, citing the need to unearth the larger conspiracy and trace the alleged involvement of higher-ups. The remand application claimed that Chandrapal Singh Chauhan was obtaining service extensions by paying hefty bribes and operating a sophisticated network for collecting undue monetary advantages.

Defence Argument and Court’s Observations

Defence lawyers, including Rahul Agarwal, vehemently opposed the CBI’s remand plea, arguing that the arrest was illegal and violated the accused’s fundamental rights. They highlighted several procedural lapses:

1. Failure to Provide Grounds for Arrest: The accused were not informed of the reasons for their arrest, either orally or in writing.
2. Delay in Producing the Accused Before the Court: The accused were presented before the court 24 hours after their arrest, contravening legal provisions.

The special CBI judge, S M Menjoge, accepted the defence’s submissions, ruling that the procedural violations rendered the arrests unlawful. While releasing the accused on bail, the court directed them to fully cooperate with the ongoing investigation.

Implications of the Ruling

The court’s decision is a setback for the CBI, raising questions about its procedural adherence in high-stakes corruption investigations. Despite the initial setback, the CBI continues its probe into the case, with the recovery of luxury items, property documents, and bribe money suggesting a deeper nexus within the SEEPZ-SEZ operations.

The case underscores the critical need for investigating agencies to uphold procedural standards while tackling corruption, especially involving senior government officials. The next phase of the investigation will determine the strength of the CBI’s case and the fate of the accused IRS officers.

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