On eve of reshuffle, two ministers told to quit

CBI sources said that R. Perumal Swamy, the personal assistant, confessed to the CBI that he was taking the money for the minister. Swamy told the CBI that the Rs 4 lakh he was taking from IRS officer Anurag Vardhan for the transfer was actually meant for the minister.

Vajpayee and Deputy Prime Minister L.K. Advani were today briefed separately by CBI director P.C. Sharma on the developments leading to the arrest of the minister’s PA.

Meanwhile, the CBI hopes to get more information from Chennai-based chartered accountant A. Krishnamurthy, who is being brought to Delhi tonight. Krishnamurthy acted as the conduit in the case.

The CBI arrested a third person, Padmanabhan, a project associate at the centre for Atmospheric Science, IIT, Delhi late last night. He had apparently driven Swamy to the residence of IRS official Anurag Vardhan and was allegedly present when money changed hands yesterday.

Though the minister put up a brave face initially, it became obvious that the axe would fall on him on the eve of the scheduled cabinet reshuffle.

He sent his resignation to Prime Minister Atal Behari Vajpayee after he had discussed matters with Deputy Prime Minister L K Advani, NDA convenor George Fernandes and BJP President M Venkaiah Naidu following his return from Chennai. Contacts were also established with MDMK Chief Vaiko, who is at present lodged in Vellore Central Jail on POTA charges.

A Delhi court today remanded Perumal Swamy, main accused, to 10 days in police custody, while the IRS officer Anurag Vardhan was remanded to four days custody taking into consideration that his two children were autistic.

The cash-for-transfer scandal has already shaken the corridors of the Finance Ministry. Officials in the ministry are all the more nervous amidst reports that more heads are expected to roll since the CBI has a long list of names of officials who might be involved in this scam.

Internal security in the ministry has been tightened and security officials have been told to keep a tight vigil on the visitors who are walking into the ministry.

The office of the other Minister of State for Finance (Insurance, Banking and Expenditure) A R V Adsul had on Thursday itself issued internal circulars stating that with immediate effect the staff should keep a strict vigil on the visitors.