Bihar: Income Tax Dept Says Officials Got Money, Gold Coins From Company Controlling Govt Recruitment
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New Delhi/Patna: The first report by The Wire Hindi on the Bihar contract recruitment scam had outlined how a firm named Urmila International Services Private Limited had effectively established a monopoly over contract recruitment within the government sectors of Bihar, reaping illegal profits.
In the second instalment of this series, we will uncover how the company purportedly offered cash and expensive gifts to officials within these departments and government entities to facilitate the seamless operation of this entire network.
As per documents obtained after a raid was conducted by the Income Tax department in February 2024, Urmila International, the company of Patna resident Kumar Avinash, allegedly distributed crores of rupees in cash, along with gold and silver coins, and expensive gifts to numerous senior officials across various Bihar government departments, district-level officials, public sector undertakings, railways, banks, and other organisations. These documents, which detail the amounts, dates, and specifics of the gifts, shed light on the extensive and systematic structure of this network.
In June 2024, Ranjan Kumar, who was the Principal Director (Investigation) of the Income Tax Department in Patna at that time, essayed the extent of these actions a letter to Brajesh Mehrotra, the then Chief Secretary of the Bihar government. So far no action has been taken.
Health department
According to the Income Tax department, Kumar Avinash's company had secured the responsibility of the appointment of candidates on a contractual basis within government departments by offering bribes to officials. Documents from the Income Tax department show that Kumar Avinash provided cash and gold coins to health department officials on multiple occasions. On April 18, 2023, the executive director of the department at that time, Sanjay Kumar Singh, received two payments amounting to Rs 40 lakh and Rs 21 lakh. During his tenure as secretary of the department, Singh was also reportedly presented with a 10-gram gold coin as a gift.
The Wire Hindi attempted to contact Sanjay Kumar Singh multiple times and sent him questions, but has not yet received a reply.
Health department officials are identified as some of the primary beneficiaries.
According to the aforementioned documents, in 2021, a total of Rs 5 lakh was disbursed in cash on three separate occasions to an officer referred to as 'A.K.', Rs 6 lakh to another officer named 'K', Rs 9 lakh to an officer identified as 'O', and Rs 1.4 lakh to an ‘ADF’. Additionally, an extra Rs 4.5 lakh was transferred to the department in August 2021.
Beltron
Bihar State Electronics Development Corporation Limited (BELTRON) is responsible for providing human resources to the government of Bihar. The Income Tax department has reported that Kumar Avinash's company influenced the recruitments carried out by Beltron, thereby ensuring the placement of its candidates in various governmental departments.
In exchange, it is alleged that Kumar Avinash offered bribes to officials at Beltron.
According to the Income Tax department, in July 2021, a payment of Rs 1 lakh was made to 'BELTRON Work (V)' and Rs 5 lakh to 'BELTRON'. Similarly, in May 2023, Rs 50,000 was recorded as being paid to the 'GM' and Rs 93,800 to 'Mrityunjay Jee'.
Documents from the Income Tax department also reference a payment of Rs 50,000 to an individual named 'Rakesh Sir' and Rs 93,600 to the General Manager of Beltron.
Kumar Avinash is alleged to have bribed officials at Beltron.
The Wire Hindi submitted comprehensive inquiries to Beltron's Public Relations Officer, but he did not respond.
Kumar Avinash is also purported to have funnelled funds to individuals in the upper echelons of politics. The documents reference a payment of Rs 1.30 crore to the IT minister, yet the date remains unrecorded, making it difficult to identify this minister.
It is also recorded that Avinash transferred Rs 7 crore to the residence of 'Deepak Sir', who is linked to the CS-Cell.
Gifts given to officials at the district level
The Income Tax department has alleged that the company made substantial payments to district-level officials, including District Programme Managers (DPMs) and District Monitoring Evaluators (DMNEs). From October 2022 to February 2023, Rs 2.33 lakh was disbursed to DMNEs in Nawada and Begusarai, as well as to the labour directors, both past and present.
A payment of Rs 1.03 lakh was made to DPM Patna during January and February 2023, while Rs 7.69 lakh was disbursed to DPMs Gopalganj, Aurangabad, and 'FM Sir' in the months of April and May 2023. On May 16, 2023, a sum of Rs 4.87 lakh was transferred to the Rohtas DPM and Rohtas, Patna, and Vaishali DMNEs.
Officials from various departments, such as Public Health Engineering Department (PHED) secretary Jitendra Srivastava, development secretary Arun Kumar Singh (who is now deceased), food secretary Pankaj Kumar, and Hajipur District Magistrate Rajiv Roshan, were allegedly presented with 10-gram gold coins.
Income tax records indicate that numerous senior officials, including secretaries from various departments within the Bihar government, have received money and gifts.
Speaking to The Wire Hindi, food secretary Pankaj Kumar refuted the claims of receiving any gifts and stated that he was not acquainted with Kumar Avinash. Meanwhile, the former Hajipur District Magistrate Rajiv Roshan, who currently serves as the Commissioner of Saran, also denied receiving a gold coin from Kumar Avinash.
Referring to it as a conspiracy against him, he stated, "Anyone is free to write anything regarding me, but that does not make it true."
Documents from the Income Tax department identify numerous officials, including directors from various other departments, public sector banks, the Railways, and the Airport Authority of India, to whom Kumar Avinash allegedly provided bribes and gifts over the years. Most of these officials have been transferred, while many others remain unreachable.
This instalment highlights the officials we have managed to contact thus far.
The Food Director received a gift of 100 grams of silver, the Managing Director of South Bihar Power Distribution Company Limited (SBPDCL) was given 10 grams of gold, and the CMD received 20 grams of gold. Several officials from Patna AIIMS are mentioned in these documents, including key figures such as the Financial Advisor and the Director, both of whom received 50 grams of silver.
Additionally, C.M. Singh, who was the Medical Superintendent of Patna AIIMS at the time, is noted to have received 20 grams of silver. Currently, Singh serves as the director at the Dr. Ram Manohar Lohia Institute of Medical Sciences in Lucknow. The Wire Hindi reached out to him for comments, but he is yet to reply.
It is also mentioned in the documents that 20 grams of gold was given to Airport Authority assistant AGM Santosh Kumar, while 50 grams were given to director Rajendra Singh Loharia.
Officials from both AIIMS and the Airport Authority were also recipients of these gifts.
In a statement to The Wire Hindi, Airport Authority Director Rajendra Singh Loharia denied receiving any such gifts, asserting, "No one has given me such a gift. I don't even know Kumar Avinash."
Loharia has since retired.
Kumar Avinash, in his conversation with The Wire Hindi, acknowledged that he purchased gold and silver coins. He explained that he intended to present these metals as gifts to officials. However, Avinash claims that the officials refused to accept the gifts from him.
He stated, "I used to work with them [the officials] so I felt I should offer them gifts. But no one accepted them."
Read the first report of the series here.
This report was translated from the Hindi original – which first appeared on The Wire Hindi – by Naushin Rehman.
This article went live on November fourth, two thousand twenty five, at fifty-five minutes past ten in the morning.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.