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Raid on CBEC chief stirs a hornet's nest

BS Economy Bureau

The unprecedented raid by the Central Bureau of Investigation (CBI) on the premises of the Central Board of Excise and Customs (CBEC) chairman BP Verma on Saturday has put a question mark on the screening process of the government for filling up such critical high-level posts.

Senior finance ministry officials said that Verma's alleged involvement in the customs bribery cases was quite disturbing considering the fact that questions were raised in the past over his track record.

The CBI on Saturday raided premises of Verma and a number of customs officials on charges of receiving bribes for favours shown to a Madras-based export house. Following CBI raids, the government kept Verma on "compulsory wait" and appointed Sukumar Shankar, member (Budget) of CBEC as the new chairman.

Officials said that the government should rethink on the screening process for appointing the seniormost officials in the department to the important posts.

The selection procedure for the CBEC chairman's post is a three-stage process. Initially, the names have to be cleared by a committee of secretaries. In the next stage, they are forwarded by the cabinet secretariat to the cabinet committee comprising the prime minister, the home minister and the finance minister. There is no rule that the government has to go by seniority. "The question is how can such a well-defined screening process commit such faults. Apparently, some pressure tactics took place," said an official.

Sources said that Verma's name was inserted at the very last moment in the list of contenders for the chairman's post, and he was appointed chairman of the CBEC on May 31 last year on the grounds of seniority.

However, his return to the board from the CEIB (Central Economic Intelligence Bureau) had faced severe protest from one of the members AM Prasad. Prasad was moved to take up Verma's place in the CEIB.

In fact Prasad had moved the Delhi High Court questioning Verma's appointment on the grounds that only a serving member of CBEC could become chairman.

Prasad had said, "Because of mandatory legal provisions, only a CBEC member can be appointed as its chairman. Verma is not a member and his appointment will not be in public interest as his track record and reputation is questionable." However, Verma took over as chairman as the court did not order any stay on his appointment.

Sources said that Verma was twice overlooked by the government while appointing members and chairman of CBEC. They added that in 1996, he was overlooked while appointing members in the board, and in 1998, DS Solanki was favoured over Verma to become chairman.

Though, finance ministry sources pointed out that, Verma was overlooked to become a member in 1996 due to an enquiry by the vigilance department in a case when he was chief commissioner in Calcutta, he managed to reach the top. In between, he was also moved from the board to the CEIB.

Sources said that this was done to promote him to the post of special secretary which is equivalent to the chairman's designation.

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