CBI books advisory firm proprietor, employee in corruption case

MUMBAI: The Mumbai unit of the Central Bureau of Investigation (CBI) has booked the proprietor and an employee of a corporate advisory and legal services firm in a corruption case. The accused allegedly accepted a bribe of ₹20 lakh from a businessman to influence the National Company Law Tribunal (NCLT), Mumbai, to secure a favourable order for the businessman’s firm in an NCLT proceeding.

The accused are A Khetan, the proprietor of the advisory firm, and an employee, M Bhat, according to the CBI’s First information Report (FIR). On Monday, the CBI also carried out searches at the premises of a former a senior NCLT officer, apart from earlier searches after its anti-corruption branch registered the case on receipt of a complaint dated January 27 from the businessman.

The FIR was registered under sections relating to criminal conspiracy and taking undue advantage to influence public servants by corrupt or illegal means or by exercise of personal influence under the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita.

The accused have denied the charges. “I categorically deny the allegations and firmly assert that I have been wrongly implicated in this matter. Both my firm and I have always upheld the highest ethical standards and I remain fully committed to cooperating with the investigating agency. We trust that the due process of law will bring the truth to light,” said Khetan.

According to the FIR, the complainant’s firm had submitted a “successful resolution application” last year before a NCLT (Mumbai) bench, which had a member (technical) and member (judicial), after the completion of a Corporate Insolvency Resolution Process (CIRP) proceedings against another firm under a Resolution Professional. The NCLT reserved its order in August 2024. No order has been passed to date.

It was then that Bhat allegedly contacted the complainant and claimed that he had “close proximity” with the member (judicial) on the NCLT’s bench, and could secure a decision in favour of the complainant’s firm in lieu of monetary consideration, according to the FIR.

The CBI’s verification revealed that Bhat had allegedly conspired with Khetan and others to influence the NCLT members in return for ₹1 crore.

“M Bhat sometimes referred to the bribe as ‘fees’ in code. However, the complainant clarified that their firm had never hired Bhat to represent before NCLT or any other forum in the matter,” a CBI source said. In the meantime, the complainant had approached the CBI about the alleged bribe demand from him, agency sources said.

The FIR stated that Bhat had initially demanded 50% of the bribe as an advance but the complainant said he could not pay up. Further negotiations reduced the advance payment to ₹20 lakh, said the FIR. On the alleged directions of Bhat, the complainant deposited the sum on February 4 in the bank account of the firm, according to CBI.

The complainant was allegedly further asked to pay the remaining sum of ₹80 lakh, in cash on the day of the pronouncement of the supposed final order in favour of the complainant, which was expected by February 14, but was not delivered.