Jerath ‘got over Rs 70 lakh’ in kickback
By Yoginder Gupta
Tribune News Service

CHANDIGARH, Feb 4 — The suspended Chief Engineer of the Union Territory of Chandigarh, Mr K.K. Jerath (now under arrest), allegedly received kickbacks to the tune of over Rs 70 lakh in a period of nearly one and a half years. This allegation is contained in the charge sheet in respect of FIR No. 1 registered by the Vigilance police station last year.

The charge sheet, which was filed in the count today, alleges that Mr Jerath made heavy purchases of mainly electrical and public health material from firms having rate contract with the Director-General, Supplies and Disposal, through certain middlemen, after taking heavy kickbacks.

The vigilance cell had registered a case against Mr Jerath and certain other officials of the UT's Engineering department under Sections 13(1) (a) (b) (c) (d) and (2) of the Prevention of Corruption Act read with Sections 406, 409, 410, 420 and 120B of the Indian Penal Code, after the Income Tax department simultaneously raided the premises of Mr Jerath and his alleged middlemen, Mr Suresh Sharma and Mr Dinesh Sharma popularly known as (Sharma brothers) and Mr Sunil Kalia, on November 20, 1997.

The raid at Mr Jerath's premises allegedly resulted in the seizure of over 2.6 kg of gold, 18 kg of silver, Rs 11.28 lakh in cash (Rs 6.28 lakh from the house and Rs 5 lakh from Times Bank lockers) and fixed deposit receipts worth lakhs of rupees. The IT authorities also allegedly seized from the premises of the alleged middlemen, among other things, a few books of accounts. One book of accounts contained datewise personal and professional expenditure and receipts, including commissions paid to the staff of the Engineering Department.

The prosecution alleged that Mr Jerath after his promotion as Chief Engineer withdrew the powers of the Superintending Engineers (SE) and Executive Engineers (XEN) to place supply orders and centralised these powers at his own level. He constituted a purchase cell comprising his own PA and a Junior Engineer, which recommended orders only to those firms with whom the commission had allegedly been negotiated through the middlemen.

Basing its case on extensive documentary evidence, the prosecution alleged a direct link between the date of payments of kickbacks and issue of purchase orders. It also alleged that to maximise illegal gratification, Mr Jerath burdened the department with huge inventories, resulting in accumulation of material far in excess of actual requirement. It alleged that immediately after the receipt of the administrative approval of a work, orders were placed for material which was needed years later.

The prosecution alleged that during the period Mr Jerath got huge kickbacks, he purchased property in the name of his wife, sons and the father-in-law worth nearly Rs 66 lakh, though the price mentioned in the registered sale deeds was just one-eighth of the purchase value.

The chargesheet mentions that Mr Jerath purchased eight acre of agricultural land near Panchkula for Rs 32 lakh in August, 1997. A 14-marla house was purchased in the name of Mr Jerath's wife for Rs 26 lakh though the sale deed was executed only for Rs 2 lakh in January, 1997. He allegedly purchased an industrial plot in the joint name of his son and the father-in-law, Mr B.K. Khanna, on October 5, 1995. The prosecution said Mr Khanna was employed with a wine contractor on a monthly salary of Rs 2500 and had no other known source of income.

The prosecution also alleged that there was a distinct linkage between the fixed deposit receipts purchased by Mr Jerath and the dates of payment of kickbacks as recorded in the seized book of accounts. No amount was allegedly withdrawn by him from his bank accounts. The officer allegedly did not show the property acquired by him or his family in his annual property returns.

The charge sheet also alleged that Mr Kalia arranged $1400 for Mr Jerath in Singapore where he went on an official tour in November, 1996, through a friend of his brother-in-law, Mr P.K. Sharma, who was an NRI. Mr Kalia also allegedly gave Rs 1.5 lakh to Mr Jerath in the name of his father-in-law, besides depositing some amount for the purchase of a plot from HUDA in the name of Mr Jerath's daughter.

The prosecution alleged that Mr Kalia was also allotted a number of works of PVC flooring of sub-stations.

Besides Mr Jerath and the three alleged middlemen, the charge sheet has named 25 other accused persons. There are two approvers in the case, Mr Jagdish Mitter, SE, and Mr A.K. Sachdeva, SE.

The charge sheet runs into 108 pages besides annexures. The sheer volume of the annexures could be judged that their index runs into seven pages.