Know how this person’s arrest could dent the RBI’s squeaky clean image

In the past, the Reserve Bank of India had been lucky to have been largely untouched by the rising controversies on the top. But, now it appears that the espionage scam may stir up a hornet’s nest even for the India’s apex bank.

While investigating the alleged sale of confidential government documents to corporate groups, the Central Bureau of Investigation (CBI) is examining the role of a senior deputy general manager of the Mumbai-based RBI. This was revealed in an ET report.

If sources are to be believed, the investigative agency is probing the possible involvement of the official in passing on information to arrested a CA-cum-consultant Khemchand Gandhi.

Earlier this month, the CBI had registered a case and conducted raids at Mumbai and Delhi, where in they claimed to have recovered Rs 60 lakh in cash from Khemchand Gandhi’s residence as well as his office. And while being quizzed by the CBI, he accepted to have used information from the RBI on application before the foreign investment promotion board (FIPB).

However, Alpana Kilawala, the RBI principal chief general manager, said that the CBI had not yet approached them. As per the financial daily, the CBI is now putting Khemchand’s visits to the RBI under the scanner. It is also taking note of Gandhi's interactions with RIL vice-president KV Mohanan, who has also been quizzed by CBI in association with this scandal.

Another senior CBI official told ET, "The agency soon plans to seek clarification from the RBI official regarding his meetings with Gandhi. The matter is under examination and we may also seek legal opinion before calling him. The role of more than one officials of the RBI who were in contact with Gandhi cannot be ruled out."

Besides Gandhi, the agency has so far arrested five people in this case. (Image: The Economic Times)