Unearths Subi Mally’s shady deals

The Central Bureau of Investigation (CBI) team here completed the field inquiry related to the scam involving deals that the Steel and Industrial Forgings Ltd (SIFL) had with ordnance factories.

The team led by Krishnakumar K.V., Superintendent of Police, completed the inquiry with questioning of V.K. Panda, general manager of the Ordnance Factory at Medak, Hyderabad, along with two officials on the scam that was committed in November 2012.

The team narrowed down on S. Shanavas, former managing director; A. Valsan, senior manager, of SIFL, and Subi Mally, a business woman from Mumbai. The latter volunteered to turn approver.

The case was that Ms. Mally came to know about the tender submitted by SIFL for supply of road wheel arms, a component in artillery tank, to the Ordnance Factory, Medak.

The only other company that was participating in the tender was AMW-MGM Forgings Pvt. Ltd., Mysore. Ms. Mally stayed at a hotel in Thrissur to hold discussions with Mr. Valsan in January 2012 and also had an official presentation at SIFL the next day.

Ms. Mally was officially appointed as the consultant for 12 per cent commission, which was way beyond the accepted norms. The CBI inquiry revealed that Mr. Shanavas and Mr. Valsan agreed for 50 per cent of the commission Ms. Mally got out of the deal.

Accordingly, the SIFL placed a revised quote which was nearly 40 per cent more than the original quote and the AMW-MGM gave a quote, which was pegged slightly above the SIFL one. Just before the supply order was given to SIFL, Ms. Mally Mr. Panda to give him Rs.3 lakh. The SIFL completed the supply in November 2012 and got the full payment on November 26, 2012.

Ms. Mally was paid over Rs.16 lakh a couple of days later, following which Mr. Valsan collected Rs.8 lakh.

Half of this money was recovered from Mr. Shanavas’ residence by the CBI team during its search.