Vigilance probe likely against Shanavaz

KOCHI: Even as Central Bureau of Investigation (CBI) is investigating the activities of S Shanavaz, former managing director of Thrissur-based Steel and Industrial Forgings Ltd (SIFL), in connection with Arjun tank scam, the Kerala government is seriously considering a vigilance probe against him as he has held key posts in various state-owned Public Sector Undertakings (PSUs).

Before taking over as the managing director of SIFL, Shanavaz was the managing director of Kerala State Bamboo Corporation Limited and managing director of Steel Industrials Kerala Limited (SIKL).

Home minister Thiruvanchoor Radhakrishnan said, "currently, the government is watching the progress of the CBI investigation against Shanavaz. After analyzing the details, if the situation warrants, we will order a vigilance probe."

As per the documents, Shanavaz had simultaneously held the posts at Kerala State Bamboo Corporation Limited and SIKL. It was on June 7, 2010, that the industries department, through a government order, appointed Shanavaz as the managing director of Kerala State Bamboo Corporation Limited and SIKL.

According to official sources, Shanavaz had conducted various foreign trips, including one to China, while he was holding the official posts. The investigation will look into the details of these trips as well.

The CBI team probing the Arjun tank scam on Tuesday opened Shanavaz's bank locker in his presence and recovered a set of title deeds in his relatives' names. According to CBI sources, the verification of the documents shows he had purchased lands in the names of his close relatives.

The CBI unearthed the involvement of Shanavaz in fraud defence deals after they tracked the activities of Mumbai-based businesswoman Subi Malli, who colluded with Shanavaz and other defence officials in finalizing a contract for SIFL for manufacturing road wheel arms and flanches of Arjun battle tanks.

It was in the last quarter of 2011 that the woman managed to get new tenders in favour of the SIFL and AMW-MGM from Indian Ordinance Factory at Medak in Andhra Pradesh and Heavy Vehicles Factory at Avadi in Andhra Pradesh.

According to CBI officials, the Indian Ordinance Factory had awarded the tender for supply of road wheel arms at Rs 8,500 per piece to SIFL and Rs 7,000 per piece to AMW-MGM. However, the woman used her influence to cancel the tender and allot a fresh one quoting Rs 13,500 per piece to SIFL and Rs 14,000 to AMW-MGM.KOCHI: A copy of a case dairy was recovered from the locker of Shanavaz by the CBI. It related to the case registered in Aluva police station in 2008 against Shanavaz under Section 364. He was acquitted in the case. CBI officials said they would apprise the state police about the case dairy as it was a secret document and they don't know how it landed in his hands.