CBI on Tuesday said it was actively probing alleged irregularities in appointment of Atul Kumar Rai, Chief Executive Officer and Managing Director of Industrial Finance Corporation of India (IFCI) Limited, a financial consultancy firm.

Highly placed sources said a preliminary inquiry in this regard has already been registered by the investigating agency to investigate the various allegations.

“CBI is actively probing the case following the registration of the PE,” a source said.

Earlier, the Parliamentary Committee of Privileges, in its report tabled in the Rajya Sabha on Tuesday, alleged “Rai suppressed factual information pertaining to his appointment as CEO/MD of IFCI.”

The Committee, headed by K Rahman Khan, said Mr. Rai was a Director in the Ministry of Finance and also nominated to the IFCI Board.

Mr. Rai, who belonged to Indian Economic Service, had taken voluntary retirement from February 28, 2007 citing personal and family grounds.

The Committee said it was, therefore, recommending that its observations relating to Mr. Rai’s conduct “be given serious consideration and properly examined for a CBI probe in the whole matter by the government to find out the facts and fix responsibility at the higher level in the then hierarchy of officers in the Department of Financial Services.”

The Committee said it was “surprised to learn that contrary to the official guidelines, Mr. Rai’s application for seeking permission to take up the job of IFCI CEO and MD was entertained when he was still in service.

“There were gross irregularities, by way of wrong interpretation of rules, to give undue favour to Mr. Rai and that his application was not examined in the light of the relevant service rules,” it said.

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