Indian agency files case against VW's Schuster
10 August 2005, NEW DELHI - India's premier investigating agency, the Central Bureau of Investigation, has registered a case against German auto-maker Volkswagen's former Indian representative, Helmuth Schuster, and his Indian associates in a EUR 2 million corruption scandal, intelligence officials said Wednesday.
10 August 2005
NEW DELHI - India's premier investigating agency, the Central Bureau of Investigation, has registered a case against German auto-maker Volkswagen's former Indian representative, Helmuth Schuster, and his Indian associates in a EUR 2 million corruption scandal, intelligence officials said Wednesday.
Sources in the CBI told Deutsche Presse-Agentur that the Anti-Corruption branch of the agency filed the case last week.
"We have launched the probe. The CBI has registered a First Information Report (FIR) against Schuster, his Indian associate Ashok Jain and Vashistha Wahan, the dummy company into which the funds were transferred", said a CBI official.
The case has been filed under sections 420 and 406 of the Indian Penal Code which pertain to cheating and criminal breach of trust.
Schuster is accused of misleading the South Indian Andhra Pradesh state by promising that Volkswagen would build a plant in the Vishakapatnam city if a payment of EUR 2 million was made. The money was transferred to Vashishta Wahan, a dummy company controlled by Schuster and his Indian associates, including Jain.
After registering the FIR, the CBI officers have reached Andhra Pradesh to verify and obtain documents and records related to the case.
They will examine all records pertaining to the Volkswagen project and documents relating to the release of the money to Vashishta Wahan, sources said.
The CBI officers also held discussions with the chief secretary, Mohan Kanda, and other top administration officials in the past few days.
The CBI has also sought to question marketing minister Botsa Satyanarayana, who was removed as the industries minister soon after the scam was revealed on July 9. Satyanarayana was in contact with Schuster and had allegedly given the go-ahead for transfer of the funds into the dummy company.
The CBI has got into action close on the heels of VW's special envoy Frank Elbe's visit to India. Elbe met Andhra Pradesh chief minister Y.S. Rajsekhara Reddy and senior officials.
VW, assuming responsibility for the damage caused by the suspected illegal dealings of Schuster, has since then sent a EUR 2 million cheque to Andhra Pradesh.
Subject: German news