No CBI probe into ‘out-of-turn’ allotment of sites

No CBI probe into ‘out-of-turn’ allotment of sites

The matter has been deemed as a “registrar of cooperative societies affair”,and reportedly no corruption is apparent.

A series of complaints against “out-of-turn allotment” of sites in Bangalore by the BEML Employees Cooperative Society will not be investigated by the CBI. The matter has been deemed as a “registrar of cooperative societies affair”,and reportedly no corruption is apparent.

The CBI had considered investigating the complaints but decided that the matter fell within the jurisdiction of the registrar of cooperative societies,agency sources said.

Former BEML employees have sought a probe by the CID into the out-of-turn allotment of over 50 sites to people not employed by BEML over the last few years at the instance of its management,including chairman and MD

V R S Natarajan.

One complaint sent to the Karnataka chief minister alleges that some of the allotments were done at the behest of Natarajan and that they were related to clearances for purchases of Tatra trucks by BEML for sale to the Army.


According to sources in the CBI,the issue of the allotments at the alleged instance of the company’s CMD,including one made to the kin of a PMO official that was later cancelled,was verified on a preliminary basis. They said it was decided that no corruption angle emerged and the matter essentially concerned irregularities by a registered cooperative society.

Several former employees of BEML have now filed complaints before the registrar of cooperative societies in Bangalore,alleging that as many as 63 housing sites had been given out in violation of the rules of the BEML Employees Cooperative Society.

Among the allegations made by former BEML employees such as S N Ashok,president of the National Confederation of Ex-Employees’ Association of PSUs,one pertains to site allotments done exclusively at the instance of the BEML CMD,who deputed one of his officials to act as a witness to the registration of properties allotted out of turn.

“The modus operandi is to make the allottee an associate member of the society,which is permitted under the rules. Many allotments are also made to benamis and the real owners may be hidden,” said a source familiar with the ongoing probes.