CLB member Vasudevan caught taking bribe

The Central Bureau of Investigation (CBI) has arrested R Vasudevan, the senior-most member of the Company Law Board (CLB), who is also probing Satyam, for accepting Rs7 lakh from a company for giving a favourable order.  Two other persons, who acted as conduits for the money — Manoj Banthia, a company secretary and an advocate — have also been arrested.

Vasudevan was caught when he was accepting the bribe amount from Banthia at his official residence. The accused group (whose name has been withheld by CBI) had paid a total of Rs10 lakh through the lawyer. The advocate gave the amount to Banthia, who kept Rs3 lakh for himself and intended to pay the rest to Vasudevan.

“A case against the trio and some other persons has been registered under the Prevention of Corruption Act,” a senior CBI official said. The matter concerned a management
dispute between two parties in a media house, which was being heard by the CLB.

One of the groups feared an adverse ruling and ‘fixed’ Vasudevan to rule in its favour.
CLB is a quasi-judicial body under the Companies Act, 1956, set up to oversee corporate cases. Its decision can only be challenged in a high court.

Vasudevan was overseeing CLB’s probe against Satyam and also some of the biggest corporate cases including the merger of Sesa Goa and Sesa Industries.

CBI searched Vasudevan’s residence and recovered, besides the bribe amount, an additional Rs 48 lakh in cash. The agency also recovered from Banthia his share of Rs 3 lakh.