The case is pertaining to inflated cost of setting up a broadcast of broadcast network for the Commonwealth Games by approximately Rs 400 crore.
The CBI officials raided the residential premises of MTNL's former CMD RSP Sinha, executive director SM Talwar, GM (Corporate Sales) NK Jain and DGM Jitendra Garg at Noida, Jaipur and Patna and in the Capital.
Dharini Mishra, CBI spokesperson said in a statement issued on Wednesday evening, "During the searches conducted so far, documents relating to immovable and movable property belonging to accused persons and other incriminating documents have been found.'' Mishra further added that searches were still going on.
Sinha informed a media agency that he was in office till January 9, 2010. So during his tenure there was no approval were made to any company.
Mishra said, "It is alleged that MTNL awarded the work of broadcast network based on IP/MPLS Technology at an exorbitant price of approximately Rs570.12 crore by manipulating specifications in such a manner as to make them tailor made for the said bidder to the said private company (HCL).''
The Shunglu Committee had also criticized the project. The committee was set up by Prime Minister, Manmohan Singh, to look at the possible irregularities committed on the eve of the Games. The report said, "MTNL was tasked with providing inter-connectivity between Games venues and the broadcasting center at ITPO. Its costs were so high that a working group had to be constituted and costs were reduced to less than half of what had been proposed".
According to the CBI, the initial estimate of broadcasting data transmission project for the Games was limited at Rs 31.43 crore, but MTNL officials included a Broadcast Video Network based on IP-MPLS technology, which resulted in cost escalation by Rs380.04 crore.
CBI alleged that the change in specification was done to cause advantage to HCL Infosystems, which caused loss to the exchequer.