New Delhi/Lucknow: The CBI on Wednesday arrested former Managing Director of government owned co-operative PACCFED V K Chaudhary and four others in connection with alleged corruption in the upgradation of 89 district hospitals in Uttar Pradesh under NRHM.

The agency arrested Chaudhary, the then managing director UP Processing and Construction Cooperative Federation Limited and now MD UP Warehousing corporation, senior engineer A K Shrivastava, chief engineer M M Tripathi and assistant engineer Vipul Kumar Gupta from Lucknow while Sunil Sehgal, owner of CNC Metal Forming Limited, was taken into custody in Delhi, CBI sources said.

The CBI also filed its chargesheet in connection with the case before a Ghaziabad court accusing a close of aide of the then Family Welfare Minister Babu Singh Kushwaha, Saurabh Jain, former Director General Family Welfare S P Ram, already in judicial custody and Sehgal, who was arrested today, of alleged corruption in the upgradation of 89 district hospitals under National Rural Health Mission, the sources said.

The CBI also charged Sehgal's Ghaziabad based company CNC Metal Forming Limited in connection with the case.

Among others, the agency slapped charges under sections of cheating and forgery of Indian Penal Code on the accused and relevant provisions of Prevention of Corruption Act.

It was established during investigation that officials of PACCFED in connivance with private persons favoured the ineligible and sick firm CNC Metal Forming Limited which was allegedly front of Jain who was close aide of Kushwaha and released Rs 16.93 crore to it without any receipt of material or services on the basis of false and forged documents, CBI sources said.

They said Jain allegedly cornered more than Rs 13 crore which was used to pay bribe to officials and bureaucrats and invested in various companies.

Further investigations against accused who are not named in today's charge sheet is continuing and based on its findings supplementary charge sheet may be filed in connection with the case, the sources said.

The CBI has already arrested former Principal Secretary Health Pradeep Shukla in connection with the case.

The agency has alleged that Shukla and S P Ram, the then DG Family Welfare, along with officials of PACCFED allegedly entered in criminal conspiracy with Saurabh Jain and Rajni Jain Directors of SRJ Infratech Pvt Limited, Seema Varshney Director S S Industries and Suneet Singhal with a motive obtain contracts worth Rs 89 crore related to upgradation of district hospitals.

The CBI alleged government suffered losses worth Rs 25 lakh per hospital which is about Rs 23 crore.


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