Micromax Promoter and Executive arrested by CBI on Graft, more to it than meets the eye?

In an astonishing turn of events the Central Bureau of Investigation arrested co-owner and promoter of cellphone handset maker Micromax, Rajesh Aggarwal, and another senior executive of the company named ManishTuli, in a case of graft. as per report by Times Of India

Rajesh Agarwal in Happier times (Centre Black suit) Image courtesy Forbes India

According to the case filed by Delhi Development Authority the Micromax bigwigs were allegedly bribing four engineers of North Delhi Municipal Corporation and DDA to obtain clearance for making a banquet hall in Wazirpur. The four engineers have been detained along with two beldars, who were reportedly given the task of receiving the kickback.

CBI sources said Aggarwal and Tuli were asked to pay 50,00,000INR (50 Lakh) by the engineers - Rajesh Wadhwa (superintending engineer), A K Singh (executive engineer), Mahinder (assistant engineer) and a DDA engineer-to facilitate the clearance, who ended up paying up 30,00,000INR (30 Lakh) for the permit.

CBI spokesperson Dharini Mishra, who confirmed the arrests, said that as soon as they learnt that the money was going to be paid at the Timarpur office of Aggarwal and Tuli, a team rushed to the spot. Aggarwal and Tuli were apprehended when they were handing over the money to the two beldars.

CBI teams then raided 15 offices and homes of all the people in question and seized Rs 40 lakh from the residence of a North corporation junior engineer named Kapil Dev.

There are whispers that the actual reason of the arrests might be an import fraud conducted by the company in its recent rapid expansion in its products in India. This is a major blow to Micromax which was sued by Erricsson earlier this year on Infringing its patents.

Arrests and raids are on even now and we should know the full extent of damage of this incident on the company as the days pass.

Source: CBI Press Release, via: Times Of India

Micromax is backed by Chinese fabless semiconductor firm Spreadtrum Communications ($10 million), Sequoia Capital, Sandstone Capital LLC and Madison India Capital ($43 million) and TA Associates ($45 million).