File picture: Alok Verma | Photo Credit: PTI

New Delhi: Amid a feud that had been raging between the Central Bureau of Investigation top boss Alok Verma and special director Rakesh Asthana, the Appointments Committee of the Cabinet has appointed joint director M Nageshwar Rao as Interim Director of the investigative agency with immediate effect, said an order by the Ministry of Personnel, Public Grievances and Pensions dated 23 October 2018. Verma and Asthana have been "divested of all powers". It is probably the first such case in the history of the country's premier probe agency.

The Prime Minister-led Appointments Committee's order means that the government has sidelined all the three additional directors, number three in the agency hierarchy, to give charge of the post of the director to joint director M Nageshwar Rao. Notably, before being served the government's order at his residence at 12:30 am on Wednesday, Verma too had signed an order at 9 pm on Tuesday divesting the second in command Rakesh Asthana of all responsibilities.

The feud between Verma and Asthana came out in open after the CBI lodged an FIR against the latter on a complaint by Hyderabad-based businessman Sathish Babu Sana, a witness in the case of meat exporter Moin Qureshi who is facing a number of cases of money laundering and corruption. Notably, a special investigation team (SIT) headed by Asthana was investigating the Qureshi case. Sana has claimed that he paid Rs 3 crore to Asthana through a Dubai-based middleman Manoj Prasad and his brother, Somesh Prasad, to save him in the case.

In a shocking development, the CBI lodged an FIR was against its own special director Rakesh Asthana on Sunday. The rift took a serious turn on Monday when Deputy Superintendent of Police Devender Kumar, who was earlier the investigation officer in a case involving Qureshi, was held for purported falsification of records in the bribery allegations against Asthana.

CBI infighting: As it happened

6:15 pm: I am under oath of secrecy. I can't speak to anybody, said KV Chaudhary, Central Vigilance Commissioner on Rakesh Asthana-Alok Verma issue.

I am under oath of secrecy. I can't speak to anybody: KV Chaudhary, Central Vigilance Commissioner on Rakesh Asthana-Alok Verma issue. #CBI pic.twitter.com/i8362v010X — ANI (@ANI) October 24, 2018

5:45 pm: The government today had accused CBI director Alok Verma of “willful obstructions” in the functioning of the CVC which was looking into complaints against him and “factional feud” with his deputy Rakesh Asthana.

5:25 pm: It is a matter of great public importance that facts and circumstances which have given rise to such extraordinary and unprecedented situation are enquired into independently and before any further erosion to the credibility of the institution: Department of Personnel & Training (DoPT) on CBI.

5:00 pm: “The image of Central Bureau of Investigation (CBI) will not be tarnished as CBI is for country not for individuals, whatever investigation required is being done,” said CBI Spokesperson.

4:30 pm: “Team probing Rakesh Asthana’s case has been reconstituted for a fair, impartial and expeditious probe. We have put available best resources in the reconstituted team. There were searches and sealing any offices are totally untrue. CBI is working normal,” CBI Spokesperson stated.

4:00 pm: “I've faith that SC would give relief to CBI director as it is a violation of section 4 of Delhi Special Police Establishment Act. I want to know which section CVC used to remove him. Why is PM protecting a corrupt officer? All democratic institutions are being undermined,” said AIMIM President Asaduddin Owaisi.

3:35 pm: Misuse of government machinery and interference in the CBI's functioning have earlier also caused disasters. Ongoing disturbance at the CBI is a matter of great concern for the nation. It's good that the matter that also had interference of central government is before the SC now: BSP chief Mayawati

3:19 pm: Times Now accesses the petition filed by CBI No 1 Alok Verma. Hitting out at his deputy Rakesh Asthana, Kumar alleged that the CBI No 2 was constantly posing hurdles against him and concocting proof to frame him. He further called the CVC action of sending him on leave as "illegal".

3:05 pm: MK Stalin further alleges that Rao met Tamil Nadu deputy chief minister and AIADMK party coordinator O Panneerselvam at the state secretariat. “When the CBI is investigating Gutkha scam and the Madras High Court has ordered an investigation against Tamil Nadu Chief Minister Edappadi K Palaniswami for awarding contracts to his relatives, the move to send CBI director Alok Verma (on leave) has raised suspicions.”

3:02 pm: Hours after M Nageshwar Rao was appointed as CBI interim director, DMK chief MK Stalin alleges that CBI director Alok Verma wanted to begin probe into a number of allegations levelled against Rao. “Is this move initiated to cover up Rafale scam investigation? This shows an undeclared emergency has been imposed in our country. Appointment of a controversial officer like Nageshwar Rao is nothing but to ensure that CBI remains the caged parrot of the BJP government.”

2:55 pm: A petition has been filed in the Bombay High Court seeking the formation of a Special Investigation Team (SIT) for a probe into the CBI infighting case. The petition also demands a retired Supreme Court judge in the SIT.

2:52 pm: CVC issues the first statement on the fiasco. CBI No 1 refused to cooperate on three occasions and obstructed probe, says the CVC. "The grave allegations of corruption by senior functionaries of CBI one against another, which has been widely reported in media, has vitiated the official eco-system of the organisation." The interim measure of divesting Alok Verma and Rakesh Asthana's roles until the inquiry concludes, adds the CVC.

2:45 pm: Institutions like CBI, CVC, judiciary, Election Commission are pillars of democracy. It is really sad that the chiefs of the topmost investigation agency are accusing each other of corruption. This is a big issue for the upcoming Parliament Session: Shiv Sena MP Arvind Sawant

2:30 pm: The CBI probe has revealed that how favours, in the form of venues and cars, were taken by Asthana from Chetan Sandesara, who was later charged with Rs 500 crore loan default. Not just this, the Sangeet ceremony was held at a Sandesara-owned farmhouse near Vadodara. The probe reveals that Hotel Express Towers provided catering for the event and did not charge anything. As per CBI documents, the wedding ceremony was organised on November 25 at the Sunken Garden, The Lakshmi Vilas Palace. In its reply, The Laxmi Vilas Palace has told the CBI that the venue was provided on a complimentary basis.

2:20 pm: Times Now has accessed a full paper trail hinting that CBI No 2 Rakesh Asthana took favours from loan defaulter Chetan Sandesara. The channel had earlier reported that how CBI chief Alok Verma had constituted a probe into the wedding of the daughter of his deputy, Rakesh Asthana, in 2016.

2:10 pm: All sensitive cases, including the ones related to Vijay Mallya and Agusta Westland, will be personally supervised by new interim Central Bureau of Investigation chief M Nageshwar Rao, reports news agency ANI.

1:50 pm:

CBI चीफ आलोक वर्मा राफेल घोटाले के कागजात इकट्ठा कर रहे थे। उन्हें जबरदस्ती छुट्टी पर भेज दिया गया।



प्रधानमंत्री का मैसेज एकदम साफ है जो भी राफेल के इर्द गिर्द आएगा- हटा दिया जाएगा, मिटा दिया जाएगा।



देश और संविधान खतरे में हैं। — Rahul Gandhi (@RahulGandhi) October 24, 2018

1:35 pm: Congress chief Rahul Gandhi attacks Prime Minister Narendra Modi on CBI shake-up. Addressing a gathering in Rajasthan, Gandhi says the CBI director was removed by 'chowkidar' because the agency was raising questions on Rafale deal.

1:15 pm: Congress spokesperson Abhishek Manu Singhvi says the BJP is experiencing 'Rafaleophobia'. While addressing a press conference, Singhvi says the government is scared of Rafale exposé. The CVC being misused by the government and has no power to interfere in appointments, alleges Singhvi.

12:55 pm: Senior Congress leader Randeep Singh Surjewala, in response to Arun Jaitley's defence, tweets: "The self-professed legal eagles of Modi Govt, Arun Jaitley & Ravi Shankar Prasad give an apology of a defence of cleaning the system to justify PM’s panic reaction on Rafale Scam."

12:40 pm: BJP MP Subramanian Swamy defends Alok Verma, says "must give a reason for the CBI director's removal".

12:31 pm: On Rafale charges, Jaitley says: "Regarding, the charge the three opposition parties have made, I regard this charge as a rubbish. The fact that the three opposition parties are saying, that we know what the agency was going to do next, itself casts a serious doubt on the fairness process."

12:30 pm: Jaitley hits out at the Opposition for raising a question mark over the decision to send CBI director Alok Verma on leave. "To maintain the institutional integrity of CBI and in the interest of fairness, purely as an interim measure, they will sit out by going on leave. A SIT not functioning under either of these officers will investigate. This is in accordance with the highest standards of fairness."

12:28 pm: The CVCs recommendation and the government's action is intended to restore the institutional integrity and credibility of the CBI, asserts Jaitley. "The CVC, in its yesterday's meeting, said neither these two officers (Alok Verma and Rakesh Asthana) nor any agency under their supervision can investigate charges against them. So the officers will sit out by going on leave. It's an interim measure."

12:24 pm: The director has been accused by the special director. A special director has been accused by the CBI. Two topmost officers of the CBI have been accused. Now, who will investigate it? Requirements for fairness and fair play have to be there. The government can't investigate it: FM Arun Jaitley

12:20 pm: During a Cabinet briefing, Finance Minister Arun Jaitley speaks about the CBI infighting. "The CBI is a premier investigative agency. For maintenance of its institutional integrity, it is a pre-condition and absolutely essential for the fair investigation," says Jaitley when asked about sending CBI director Alok Verma on leave. He calls it "an interim measure".

12:10 pm: West Bengal Chief Minister Mamata Banerjee alleges that the CBI has become the BJP's policing agency. "CBI has now become so-called BBI (BJP Bureau of Investigation) - very unfortunate!" Banerjee tweets.

12:05 pm:

Immediately after illegally removing the Director CBI, Alok Verma & illegally appointing tainted officer Nageshwar Rao as acting Director, the entire ACB team particularly those investigating PMO's blue eyed boy Asthana, are being replaced with alacrity! It is Modi's CBI Gate pic.twitter.com/rDIRYUEw4R — Prashant Bhushan (@pbhushan1) October 24, 2018

11:55 am: The CBI overhauls the team investigating allegations of corruption against Asthana, bringing in completely new faces. M Nageshwar Rao, who took over the interim charge of CBI director at 2 am on Wednesday, appointed Satish Dagar as Superintendent of Police to probe the case. Notably, Dagar is the one who had probed cases against Dera Sacha Sauda chief Gurmeet Ram Rahim. His first supervisor will be DIG Tarun Gauba, who had investigated Vyapam cases. V Murugesan has been brought in at joint director-level.

11:40 am: Delhi Chief Minister Arvind Kejriwal rakes up Rafale deal issue after the Congress. "Is there a co-relation betn Rafale deal and removal of Alok Verma? Was Alok Verma about to start investigations into Rafale, which cud become problem for Modi ji?," the AAP leader tweets.

11:20 am: "Central BJP Intruders (CBI) have virtually taken over Caged Bureau of Investigation (CBI) to save Corrupt Brokers of India (CBI) through it’s Criminal Barter Interrogation (CBI) by its Crooked Bureaucrats of Incompetence (CBI)," tweets Rashtriya Janata Dal leader and former Bihar deputy chief minister Tejashwi Yadav.

11:03 am: In his first order as interim chief, M Nageshwar Rao removed the entire team probing the bribery allegations against Rakesh Asthana, including investigation officer Ajay Bassi and deputy inspector general Manish Sinha. Bassi has been transferred to Port Blair. In total, nine officers were transferred. Notably, Asthana had allegedly complained to the Central Vigilance Commission that Bassi was conducting "roving inquiries" against him on the directions of Alok Verma.

10:55 am: After moving the SC against Panel's decision to send Alok Verma on leave, lawyer Prashant Bhushan makes a sensational charge. Bhushan alleges that interim chief M Nageshwar Rao faces corruption charge and Alok Verma had told the CVC about Rao. He further claims that Rao has been appointed to save Asthana.

10:39 am: Alok Verma's petition will be heard on Friday, said a bench headed by Chief Justice Ranjan Gogoi. Gopal Sankaranarayanan, the lawyer appearing for Alok Verma, told the Supreme Court that the Centre, in the morning, asked Verma and special director Rakesh Asthana to go on leave, compromising the probe into a number sensitive cases.

10:35 am: The Chief Justice of India is likely to mention the matter. The advocates of Bhushan and Verma are waiting at the Court No 1.

10:20 am: A day after CBI director Alok Verma was "divested of all powers" by the government, he has decided to move the Supreme Court, challenging the government's order sending him on leave and the decision to give interim charge of the agency to joint director M Nageshwar Rao. Meanwhile, lawyer Prashant Bhushan has also decided to move the apex court.

10:00 am: Loktantrik Janata Dal (LJD) patron Sharad Yadav accuses the government of destroying institutions that are based on the Constitution. In a tweet, the former Janata Dal (United) president said:

ये सरकार संवैधानिक संस्थानों को ध्वस्त करती आ रही है जैसा कि अभी सीबीआई में हुआ।जब डायरेक्टर ने अस्थाना को स्पेशल डायरेक्टर लगाने पर अपना ऑब्जेक्शन लगाया था तो सरकार को वो नहीं करना चाहिए था। इसी तरह सारे देश में बरसो से चल रहे सिस्टम से खिलवाड़ हो रहा है। यह देश हम सभी का है । — SHARAD YADAV (@SharadYadavMP) October 24, 2018

9:45 am: It is being reported that the office of Alok Verma, whose tenure as CBI director was supposed to end in December and cannot be removed formally, is being searched. News agency ANI has mentioned CBI sources as saying that there will be no movement of officials or files at the offices of director and special director Rakesh Asthana till 2 pm today.

9:35 am: In response to Congress spokesperson Manish Tewari's tweet, BJP national spokesman GVL Narasimha Rao said: "@RahulGandhi indulged in petty politics by taking sides, while PM Shri @narendramodi demonstrated statesmanship by acting on warring officers to protect institutional integrity. Extreme situations require extraordinary measures. I'm confident Hon'ble S.Court will support action."

9:20 am: The CBI building, which was earlier reported to be sealed, has now been opened. Earlier in the day, it was being reported that officials or outsiders were not being allowed inside the building.

9:18 am: Communist Party of India (Marxist) leader Sitaram Yechury criticises the government's decision and deems it as "illegal". "The illegal removal of CBI chief by the Modi government to protect their own handpicked officer, against whom serious charges of corruption are being investigated, points to attempts at a serious cover-up to protect his direct links to the BJP's top political leadership," he says.

"To ensure that the CBI is not a caged parrot, Supreme Court had granted protection to the Chief from government's whims and fancies by giving him a two-year tenure. What is Modi government trying to hide by its panic move? #BJPCorruption," he adds.

9:10 am: Delhi Chief Minister Arvind Kejriwal too tweeted on the issue. "What are the reasons for sending CBI director on leave? Under which law did the Modi govt get the authority to initiate action against the chief of an investigating agency appointed as per the Lokpal Act ? What is Modi govt trying to hide ?"

9:05 am: Senior Congress leader Randeep Singh Surjewala, in a series of tweets, said: " Modi Govt buries the ‘last nail’ into the independence of CBI. Systematic dismantling & denigrating of CBI is now complete. Once a premier investigating agency, PM ensures that CBI’s integrity, credibility & reliability is ‘buried & dead’. PM Modi seeks to achieve surreptitiously & clandestinely what he can’t do directly to sack the CBI Director."

"Habitual and perpetual misuse of CBI by Modi Govt & BJP to tamper fair investigation of serious criminal cases is the reason for this unfathomable mess. PM Modi has demonstrated the true colour of his infamous ‘Modi Made Gujarat Model’ by this cloak-and-dagger mugging of CBI. Has the CBI Director been sacked for his keenness to probe the layers of corruption in Rafale Scam? Isn’t the rest a shoddy cover up? Let PM answer!"



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9:00 am: Amid the criticism over relieving Alok Kumar, sources said the Central Vigilance Commission (CVC), which supervises the CBI’s functioning, exercised its power of controlling the CBI administration by taking this step. Both powers of administration and investigation rest with CVC.

8:40 am: Congress spokesperson Manish Tewari slams Cabinet panel's unprecedented move. "In terms of both Lok Pal Act & Supreme Court Judgment in Jain Hawala case-Director CBI has a fixed tenure of 2 years.Govt can not curtail tenure/take interim measures without a meeting of Committee consisting of PM,CJI & leader of Opposition/single largest party.Prima Facie ?able," tweeted Tewari.

8:25 am: Asthana has challenged the FIR filed against him on bribery allegations. Reports have claimed that Asthana had written a ‘top secret’ complaint to the Cabinet Secretary accusing Asthana of a 'frame-up'. listing more than a dozen charges against the Director, including relating to the investigation against meat exporter Moin Qureshi, and regarding two businessmen seeking St Kitts citizenship, and a land acquisition case in Haryana.

8:05 am: Nageshwar Rao, a 1986 batch Indian Police Service officer of the Orissa cadre, hails from Telangana's Warangal district. Rao will "look after duties and functions of director CBI and shall take over the duties and functions with immediate effect," said the order issued by the Prime Minister-led appointments committee.

7:50 am: Lawyer and activist Prashant Bhushan is likely to approach the SC against the government's order, a copy of which he posted on his Twitter account. "Breaking! As feared&suspected, the govt has removed the Director CBI from his charge, because he was pursuing corrupt Spl Director Rakesh Asthana who was foisted on CBI by PMO despite his being investigated by the CBI itself in corruption cases.Totally illegal. Will be Challenged."

7:30 am: In yet another big development in the case, the CBI building was sealed today. Neither staff nor outsiders are being allowed to enter the premises. Only a team of selected officers is currently inside the HQ.