Rail Neer: Court grants bail to official, no relief for bizman

New Delhi: A special court on Friday granted bail to a senior railway officer but declined the relief to a businessman arrested in connection with alleged corruption in the supply of packaged drinking water in Rajdhani and other superfast trains.

The court granted bail to M S Chalia, an Indian Railway Traffic Service (IRTS) officer, on a personal bond of Rs 50,000 with one surety of the like amount observing that keeping him in judicial custody would not serve any purpose.

However, Special Judge Vinod Kumar dismissed the bail plea of businessman Sharan Bihari Aggarwal saying that he was the "direct beneficiary" of the transactions and investigation about the approximately Rs 28 crore cash recovered during the searches was going on.

"It must be kept in mind that the applicant is the direct beneficiary of the transaction in question. Therefore, I am of the opinion that it is not a fit stage to grant bail to the applicant as it has the possibility of hampering the investigation. Accordingly, the bail application is hereby dismissed," the court said.

CBI had opposed Chalia's bail plea saying that he had abused his official position as he did not act despite several letters sent by IRCTC to supply Rail Neer and supply of other brands of water resulted in a loss of Rs 6.25 crores to the railways.

The judge, however, granted him bail saying, "I am of the opinion that keeping him in judicial custody will not serve any purpose. According, I admit the applicant/accused M S Chalia to bail..."

Besides these two accused, senior rail officer Sandeep Silas, also an IRTS officer, was also arrested by CBI in connection with the case. He is at present in judicial custody.