Bribe-for-Report Racket in Government Lab: CBI Uncovers Crores-for-Clearance Scam

Bengaluru:
A major corruption case has rocked the Central Power Research Institute (CPRI), a key government laboratory responsible for testing and certifying electrical equipment used across India’s power sector. The Central Bureau of Investigation (CBI) has arrested a senior official and a private company executive for allegedly running a bribe-for-report racket that compromised technical clearances in exchange for illegal payments.

The agency claims the scam involved issuing favourable test reports to private firms, regardless of whether their products met mandatory safety and quality standards.

Senior CPRI Official Caught Taking Bribe

The CBI arrested Rajaram Mohanrao Chennu, Joint Director at CPRI, after allegedly catching him red-handed while accepting a bribe of ₹9.5 lakh on January 9, 2026. Investigators say the money was paid to secure “pass” or “conforming” test reports for electrical equipment submitted by private companies.

In the same case, Atul Khanna, Director of the Sudhir Group of Companies, has also been arrested for allegedly offering the bribe to influence the testing outcome.

Complaint Leads to Trap Operation

According to CBI officials, the case was initiated following a complaint from a private firm that alleged routine demands for illegal gratification in exchange for favourable test results. A preliminary verification reportedly revealed that the accused official frequently interfered with the testing process and manipulated certification outcomes.

Based on these findings, the agency laid a trap and apprehended the Joint Director while he was allegedly accepting the bribe at a pre-arranged location in Bengaluru.

Massive Cash and Foreign Currency Recovered

Following the arrests, the CBI conducted searches at the accused official’s residence and other associated premises. These searches led to the recovery of more than ₹3.59 crore in unaccounted cash, along with foreign currency valued at over ₹4 lakh.

Officials said the seized foreign currency included US dollars, euros, Hong Kong dollars, Singapore dollars, UAE dirhams, Chinese yuan, Swedish krona, Malaysian ringgit, and Indonesian rupiah. The total seizure has so far crossed ₹3.76 crore, and search operations are continuing at additional locations.

Alleged Long-Running Racket Under Probe

Preliminary findings suggest that the accused may have been engaged in corrupt practices for a considerable period, systematically abusing his position to benefit select private firms. The CBI is now examining whether the case is part of a larger organised network involving middlemen, multiple companies, and possibly other officials within or outside CPRI.

Investigators are reviewing past test reports issued under the officer’s supervision to determine whether compromised clearances were routinely granted to substandard or non-compliant products.

Serious Implications for Public Safety

CPRI plays a critical role in testing and certifying equipment such as transformers, cables, switchgear, and other electrical components essential to India’s power infrastructure. Officials warned that any dilution of testing standards could pose serious risks, including safety hazards, infrastructure failures, and significant financial losses.

The CBI is also scrutinising bank accounts, financial transactions, call records, and asset details of the accused, while mapping communication with company executives to identify other beneficiaries of the alleged scam.

Case Registered Under Corruption Laws

The agency has registered the case under relevant provisions of the Prevention of Corruption Act and other applicable laws. Officials stated that strict action will be taken against all individuals found involved, regardless of their rank or position.

The CBI has indicated that the investigation may expand further, with the possibility of additional arrests as financial trails are traced and evidence is analysed.