CBI books US- based executive for bribery

To secure contracts, an executive of Indian subsidiary of the US- based company CDM Smith and some officials of National Highway Authority of India ( NHAI) are in dock as the Central Bureau of Investigation ( CBI) has booked them, for allegedly demanding a bribe of over ` 1.18 million.

A team of officials from the CBI on Saturday carried out searches at nearly five locations in the offices of the CDM Smith, situated in Bengaluru and Chennai.

The team also carried out intensive search at the residence of the then director ( Finance) of its Indian subsidiary, Gopakumar, the then manager of RV Infra Solutions, S. Krishnamurthy, and other unidentified executives of the US- based company, its Indian arm and the NHAI, according to the FIR.

According to the officials, it is alleged that the company paid bribes to the tune of USD 1.18 million through its Indian arm to various officials of NHAI to secure contracts between 2011 and 2016. The first information report filed against the company also stated that in order to cover up their illegal acts of bribery, the accused officials of the CDM Smith showed these expenses as ‘ allowable business expenses’ in their income tax returns. Later, they submitted before the income tax office in Bengaluru that certain expenses listed under allowable business expenses were not covered under the IT Act and voluntarily offered such expenses for disallowance, the officials said.

The total amount of disallowance sought by CDM Smith India Private Limited and CDM Smith Inc, Boston is equivalent of USD 1.18 million. The company has claimed before the Department of Justice of the USA that the disallowance amount was paid as bribe to the officials, they said. CDM Smith India Pvt Limited showed expenses to subcontractors and firms, but it is alleged that they were not actual expenses. They were rooted through them to camouflage bribes paid to NHAI officials, they said.

The agency alleged that Gopakumar was the ‘ key’ person to manage the payments to subcontractors, they said.