Indian court jails businesswoman in VW case

11th October 2005, Comments 0 comments

11 October 2005, NEW DELHI - A court in the southern Indian state of Andhra Pradesh Tuesday sent a businesswoman, Gayatri Rai, to jail in connection with the 2.4 million dollar Volkswagen (VW) corruption case.

11 October 2005

NEW DELHI - A court in the southern Indian state of Andhra Pradesh Tuesday sent a businesswoman, Gayatri Rai, to jail in connection with the 2.4 million dollar Volkswagen (VW) corruption case.

Rai, 48, sister-in-law of co-accused Jagadeesh Alaga Raja, was arrested in the southern city of Madras by India's Central Bureau of Investigation (CBI) on Monday.

This was after a court had issued a non-bailable warrant against her and the firm's former boss in India, Helmuth Schuster, last week. Schuster is wanted in India in connection with alleged criminal conspiracy and cheating.

A CBI official said Rai appeared before a metropolitan magistrate in the state capital Hyderabad, who remanded her in judicial custody for two weeks.

The CBI believes that Rai received 445,800 dollars of the 2.4 million dollars paid by the Andhra Pradesh government to a dummy company, Vashishta Wahan.

Schuster, who was sacked by Volkswagen, had reportedly asked the Andhra Pradesh government to pay the 2.4 million dollars to Vashishta Wahan, promising he would set up a VW manufacturing unit in the state. Vashishta Wahan was set up by Raja and Ashok Jain, associates of Schuster.

Jain has already been arrested by the CBI on August 12 and is in jail. The court had already issued a warrant against Raja, also a director of Vashishta Wahan. He is reported to be in Germany assisting Volkswagen in the probe against Schuster for suspected illegal dealings, according to the IANS news agency.

The CBI has recovered about 1.1 million dollars from one of Schuster's associates.

DPA

Subject: German news

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