Subi Malli remanded in CBI custody till Feb 11

CBI court remanded Mumbai`s businesswoman Subi Malli, arrested for mediating in deal between Steel and Industrial Forgings Ltd and ordinance factories, in CBI custody till Feb 11.

Updated: Feb 09, 2013, 00:31 AM IST

Kochi: A CBI Special court on Friday remanded Mumbai based businesswoman Subi Malli, arrested for allegedly mediating in a deal between state-owned Steel and Industrial Forgings Ltd and various ordinance factories for supplying battle tank components, in CBI custody till February 11.

She was produced before CBI Special court judge P Sasidharan, who remanded her in custody till that date.

The agency in its plea informed the court that Malli needs to be questioned as she was suspected to have received vital information from some defence officers.

CBI Additional director Rupak Kumar Dutta arrived this morning to question the woman.

M Shahnavaz, Managing Director of Thrissur based SIFL is also being questioned.
Malli`s arrest last night followed her refusal to cooperate during interrogation, CBI sources said. She was being questioned by CBI for the past few days.

Malli, who allegedly received Rs 18 lakh as commission from SIFL for mediating in the deal, has been charged with conspiracy, corruption and causing loss to the exchequer.

CBI had registered an FIR against three persons Shahnavaz, the company`s senior manager, Valsan and Malli for allegedly colluding with some officials of Heavy Vehicles factory at Avadi and bagging contracts at highly inflated rates, causing loss to the state exchequer.

Some `unknown persons` of the Avadi unit have also been mentioned in the case.

The allegation against the accused is that SIFL officials conspired with Malli to influence the public servants of Defence establishment at Avadi and bagged some contracts at highly-inflated rates and cheated the exchequer.

The case was registered after searches on January 15 and 16 at residences and premises of the suspects in Kerala, Mumbai, Avadi and Hyderabad.

SIFL is a regular supplier of road wheel arm and flange used in manufacturing artillery tanks. It is alleged that Malli got in touch with SIFL officials regarding supply to the Ordinance factory at Madek in Hyderabad in January 2012.

SIFL`s tender was at first rejected and the same product was retendered quoting a higher price and the company managed to secure the contract. The deal came to light after SIFL`s director board objected to granting of commission.