CBI Arrests PSU Managing Director in Bribery Case; Cash, Gold Worth Over ₹1.6 Crore Seized
CBI alleges Karnataka Antibiotics and Pharmaceuticals Ltd (KAPL) chief accepted ₹5 lakh as part payment during a trap operation in Noida
The Central Bureau of Investigation (CBI) has arrested the Managing Director of Central Public Sector Undertaking (CPSU) Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) in an alleged bribery case involving the renewal of service agreements and allocation of government business.
According to the investigating agency, the senior PSU official was caught during a trap operation in Noida while allegedly accepting ₹5 lakh as part payment of a total bribe demand of ₹15 lakh from a private company.
The CBI has registered a case against the accused Managing Director, alleging that he demanded illegal gratification from a Bhopal-based firm serving as an authorized service agent of KAPL for Madhya Pradesh. The agency alleged that the bribe was sought for approving the firm’s Service Agent Agreement, renewing pending applications for the current financial year, allocating additional government agencies to the company, and securing a share of the commission earned from medicine sales.
Trap Operation Leads to Arrest
The CBI said it laid a trap on July 15 after receiving information regarding the alleged bribery demand. During the operation, the accused was allegedly caught red-handed while accepting ₹5 lakh, following which he was immediately arrested.
The arrest was followed by extensive search operations at the official’s residence and office premises in Bengaluru, Noida and Jabalpur.
Cash, Gold and Foreign Currency Recovered
During the searches, CBI officials reportedly recovered:
- ₹75 lakh in cash
- Foreign currency worth approximately ₹4 lakh
- 697 grams of gold coins and jewellery, valued at around ₹86 lakh
- Property documents relating to a residential flat owned by the accused
The total value of the cash and gold recovered exceeds ₹1.6 crore, excluding the value of the seized property documents.
Investigation Underway
The CBI said the investigation is continuing to determine whether the recovered assets are linked to the alleged bribery and whether additional financial irregularities or other individuals were involved.
Officials are examining the seized documents, cash and valuables as part of the ongoing probe. Further legal action will depend on the evidence gathered during the investigation.
About KAPL
Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) is a Central Public Sector Undertaking engaged in the manufacturing and supply of pharmaceutical products to government institutions across India. The company supplies medicines to various Central and State government agencies and public healthcare institutions.
The alleged bribery case has drawn significant attention as it involves the head of a Central PSU and pertains to approvals and commercial arrangements related to the supply of medicines to government departments.
