Fodder scam: Lalu Prasad's ex-secretary dodging CBI for 17 years

Rashtriya Janata Dal chief Lalu Prasad's private secretary during 1990-96 and his partner in crime in the fodder scamhas continued to dodge the CBI for 17 years, even though he was seen reportedly "enjoying life" in Dehradun in Uttarakhandstate. 

Lalu Prasad is among the 45 people convicted Sep 30 in a fodder scam case by a special CBI court in Ranchi. His secretary Mukul Kishore Kapoor disappeared after the scam was unearthed. 

"Mukul knew more than anyone as he was considered the eyes and ears of Lalu Prasad. But he disappeared soon after fodder scam surfaced. It was Mukul who reportedly kept all accounts of huge amount of the fodder scam (money)," said a senior police official here. He had assisted the Central Bureau of Investigation in arresting Lalu Prasad, other leaders and senior IAS and animal husbandry department officers in the case. 

"Mukul's arrest could reveal more about fodder scam. After all, he was powerful and second to Lalu till mid-90s in Bihar. Everything used to pass through him before (reaching) Lalu then," a senior Indian Administrative Service (IAS) officer said. 

But the CBI failed to trace Mukul for 17 long years, despite several search operations. 

Lalu Prasad's rivals repeatedly said Mukul was forced to disappear to protect the RJD chief.

"Mukul was asked to go underground and live a life away from the limelight because his arrest would create more trouble for Lalu," state Bharatiya Janata Party leader Nitin Navin said. 

Sources close to Mukul and relatives of his estranged wife told IANS that Mukul is alive and living in Dehradun in Uttarakhand for over a decade now. 

"Mukul is healthy and enjoying life. We fail to understand why the CBI failed to arrest him in connection with fodder scam," a source said. 

Last year, the Bihar government put in advertisements in newspapers asking Mukul to return the money he had borrowed for a foreign trip with Lalu Prasad. He has not returned it. 

It was widely reported that Mukul "surfaced" in Patna over a year ago to buy two flats in an apartments building here.

The Economic Times

P Chidambaram, Raghuram Rajan order banks to cut interest rates on loans

FM P Chidambaram and RBI Governor Raghuram Rajan have laid the foundation for a grand Diwali dhamaka that is likely to lead to banks cutting interest rates on loans for the festive season. Government today decided to enhance capital infusion into the PSU banks over and above what was provided in the Budget to enable them to extend more credit to auto and consumer durables sectors to stimulate demand and combat slowdown.

At a meeting between Finance Minister P Chidambaram, RBI GovernorRaghuram Rajan and Economic Affairs Secretary Arvind Mayaram a decision was taken to increase the quantum of capital infusion into PSU banks.

Related: RBI bans zero per cent interest rate scheme for buying goods

"This amount (Rs 14,000 crore provided for capital infusion in Budget) will be enhanced sufficiently. The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sectors such as two-wheeler, consumer durables, etc at lower interest rates in order to stimulate demand," a finance ministry statement said.

It further said the additional fund infusion would help in combating slowdown and boost output.

Related: The story behind zero per cent interest EMI schemes

"While this will bring relief to consumers, especially the middle class, it is also expected to give a boost to capacity addition, employment and production," it added.

As per the latest industrial output data, the output of the consumer durables sector declined by 9.3 per cent in July, from a growth of 0.8 per cent in the same month last year. The segment saw a 12 per cent decline in output in April-July compared with growth of 6.1 per cent.

Consumer durables, a reflection of demand for manufactured products, include TV, fridge, washing machine.

The two-wheeler sales recorded a flat growth of 0.72 per cent in April-August period current fiscal, as against a growth of 6.8 per cent in the corresponding period last year.

The meeting, which lasted for over an hour, discussed credit growth in different sectors.

The quantum of additional capital infusion, however, was not disclosed by the government.

The Economic Express