The Central Bureau of Investigation (CBI) has arrested the Managing Director of Karnataka Antibiotics and Pharmaceuticals Limited (KAPL), a Central Public Sector Enterprise (CPSE), in connection with an alleged bribery case involving a demand of ₹15 lakh from a private company. The arrest followed a successful trap operation conducted in Noida on July 15, officials said on Thursday.
According to the CBI, the accused was allegedly demanding illegal gratification from a Bhopal-based firm that serves as an authorised service agent of KAPL. The company supplies medicines to various government institutions in Madhya Pradesh and was reportedly under pressure to pay the bribe in exchange for favourable official decisions.
Bribe allegedly sought for official approvals
Investigators stated that the Managing Director allegedly demanded around ₹15 lakh to approve the renewal of the firm’s Service Agent Agreement. The alleged demand also covered approval of the firm’s application for allocation of additional government institutions during the current financial year.
The agency further claimed that the accused sought a share of the commission earned by the service agent through the sale of medicines supplied to government institutions. The alleged demand was linked to ensuring continued business opportunities and securing official approvals from KAPL.
Following a complaint, the CBI initiated a discreet verification of the allegations before registering a case and planning a trap operation. Officials said evidence gathered during the preliminary inquiry supported the complainant’s claims, leading to further action.
Caught while accepting ₹5 lakh
The CBI said the accused was caught red-handed in Noida while allegedly accepting ₹5 lakh in cash. The amount was described as the first instalment of the total ₹15 lakh allegedly demanded from the complainant.
The trap operation was conducted after the complainant agreed to cooperate with investigators. Officials laid a carefully planned trap and apprehended the Managing Director immediately after the alleged acceptance of the cash payment.
The arrest marks a significant development in the investigation, as the agency believes the transaction forms part of a larger corruption case involving abuse of official position within a Central Public Sector Enterprise.
Extensive searches conducted in three cities
Following the arrest, CBI teams carried out simultaneous searches at the accused’s residential and office premises in Bengaluru, Noida and Jabalpur.
During the searches, investigators reportedly recovered around ₹75 lakh in cash. In addition, foreign currency valued at approximately ₹4 lakh was seized from the Noida residence and the office chamber of the accused in Bengaluru.
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Officials also recovered nearly 697 grams of gold jewellery and gold coins, estimated to be worth around ₹86 lakh. Property-related documents, including papers connected to a residential flat owned by the accused, were also seized during the operation.
The recovered materials are expected to be examined as part of the investigation to determine whether they are linked to the alleged offence or indicate disproportionate assets.
Investigation to examine financial transactions
The CBI is now expected to analyse financial records, property documents and other seized materials to establish the money trail. Investigators may also scrutinise bank accounts, business dealings and communication records connected with the accused and the complainant.
Officials are likely to question individuals associated with the service agent firm as well as KAPL officials who may have been involved in the approval process for service agreements and institutional allocations.
The agency is also expected to verify whether similar demands were allegedly made from other vendors or service agents working with the pharmaceutical PSU.
KAPL’s role in public healthcare
Karnataka Antibiotics and Pharmaceuticals Limited is a government-owned pharmaceutical company engaged in the manufacturing and supply of medicines and healthcare products. The PSU supplies medicines to various government departments and healthcare institutions across the country through authorised distributors and service agents.
Any allegations of corruption involving senior officials of such public sector organisations are treated seriously, as they can affect procurement systems, public healthcare delivery and the credibility of government institutions.
Anti-corruption agencies have intensified efforts in recent years to detect and prosecute cases involving public servants accused of demanding or accepting illegal gratification in exchange for official favours.
Legal proceedings ahead
The arrested official is expected to be produced before the competent court for further legal proceedings. The CBI may seek custodial interrogation to gather additional evidence and identify any wider conspiracy or involvement of other individuals.
The seized cash, gold, foreign currency and property documents will form an important part of the evidence during the investigation. Forensic examination of digital devices and financial records may also be carried out.
The CBI has confirmed that the investigation is continuing, and further action will depend on the evidence collected during the ongoing probe. Officials have not ruled out additional arrests or questioning of other persons connected to the case as investigators continue to examine all aspects of the alleged bribery network.
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