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The views expressed in the 'CBI<br />
Bulletin' are exclusively <strong>of</strong> the authors<br />
and do not correspond necessarily<br />
to the <strong>of</strong>ficial views <strong>of</strong> the <strong>Central</strong><br />
<strong>Bureau</strong> <strong>of</strong> <strong>Investigation</strong>.<br />
CBI BULLETIN<br />
Vol. XIX Nos. 4-6<br />
EDITORIAL BOARD<br />
Patron<br />
AMAR PRATAP SINGH<br />
Director<br />
Editor<br />
SUJEET PANDEY<br />
DIG (Trg.)<br />
Concept, Design & Print by:<br />
GENESIS 98100 33682<br />
genesisadvt@hotmail.com<br />
CONTENTS<br />
Page No.<br />
Editorial 2<br />
Counter-Terrorism and Police Legitimacy 3<br />
The Future <strong>of</strong> Policing Challenges:<br />
Technology (In) Crimes by Pratap Reddy 5<br />
Forensic Auditing by J.L. Negi 8<br />
The Wave <strong>of</strong> Future...by Akansha Gupta 14<br />
The Architecture <strong>of</strong> Cyber Security by<br />
Col. Debtoru Chatterjee 17<br />
Advancement <strong>of</strong> Techniques for Forensic Examination <strong>of</strong><br />
CDs/DVDs by Mukesh Sharma & Shailendra Jha 38<br />
New Building <strong>of</strong> CBI Head Office 43<br />
lhchvkbZ cuke Hkz"Vkpkj & vfuy ijk'kj 45<br />
In Home News 46<br />
Cover :<br />
Hon'ble Prime Minister Dr.<br />
Manmohan Singh, along with Shri V.<br />
Narayanasamy, MoS (PP), Smt. Alka<br />
Sirohi, Secretary (P&T), Shri T.K.A.<br />
Nair, Principal Secretary to PM, Shri<br />
Amar Pratap Singh, Director, CBI &<br />
others on the occasion <strong>of</strong> inauguration<br />
<strong>of</strong> the new CBI Headquarters<br />
RESTRICTED FOR POLICE USE<br />
CBI Bulletin April - June 20111
Editorial<br />
On 30th April, 2011, CBI witnessed the fulfilment <strong>of</strong> it’s long cherished<br />
dream <strong>of</strong> having it’s own headquarters building - a state <strong>of</strong> the art,<br />
green building. While inaugurating the same, Dr. Manmohan Singh,<br />
the Hon’ble Prime Minister <strong>of</strong> India, lauded the pr<strong>of</strong>essional work<br />
done by the CBI, and the benchmark it has set for other Investigating<br />
Agencies to emulate. He also emphasized on the commitment <strong>of</strong> the<br />
Government towards technological needs <strong>of</strong> the organization.<br />
In the past few decades, use <strong>of</strong> technology has indeed become an<br />
inseparable part <strong>of</strong> crime detection. One area that has emerged<br />
fast is the use <strong>of</strong> information technology by the criminals, which is<br />
posing new challenges everyday for law enforcement agencies in<br />
prevention and detection <strong>of</strong> crime. About 80% crimes, according to<br />
me, have atleast some elements involving use <strong>of</strong> digital equipments<br />
and <strong>of</strong> Cyber space. Therefore, the upgradation <strong>of</strong> technological and<br />
scientific knowledge is the need <strong>of</strong> all law enforcement agencies <strong>of</strong><br />
the country.<br />
Since the CBI Bulletin has become an effective medium <strong>of</strong> disseminating<br />
the latest in the field <strong>of</strong> investigation and other police related subjects<br />
to Investigating Officers <strong>of</strong> India and abroad, we decided to cover<br />
issues related to Cyber Crime and Cyber Forensics in this edition <strong>of</strong><br />
the bulletin. We have included some important articles on Cyber<br />
Security and Scientific <strong>Investigation</strong> which will definitely enrich the<br />
readers involving latest technology. Articles like “The Future <strong>of</strong> Policing<br />
Challenges : Technology in Crimes”, “Forensic Auditing” and the<br />
article “Advancement <strong>of</strong> techniques for Forensic Examination <strong>of</strong> CDs/<br />
DVDs” throws light on the importance <strong>of</strong> technology and forensic<br />
development in investigation. Articles titled “Cloud Computing” and<br />
“The Architecture <strong>of</strong> Cyber Security” explores the cyber world and<br />
gives us updated information.<br />
We fervently hope that this issue <strong>of</strong> the Bulletin shall make significant<br />
contribution to the information inputs <strong>of</strong> our readers. As always, we<br />
look forward to your comments and suggestions, which help us in<br />
shaping the Bulletin.<br />
Editor<br />
2 CBI Bulletin April - June 2011
in the face <strong>of</strong> the London bombings<br />
<strong>of</strong> 2005, he said that provision<br />
<strong>of</strong> information to the public is a<br />
fundamental clue to help police and<br />
to retain contact with the public<br />
about what measures are necessary in<br />
the face <strong>of</strong> unprecedented threat <strong>of</strong><br />
terrorism. He said it is the dilemma <strong>of</strong><br />
our times to understand the delicacy<br />
<strong>of</strong> the legitimacy <strong>of</strong> police work and<br />
to provide detailed rationale for the<br />
way the police functions in tackling<br />
terrorism. Quoting Sir Robert Peel,<br />
Lord Blair said, "The police are the<br />
public and the public are the police."<br />
12th D.P. Kohli Memorial Lecture on<br />
“Counter-Terrorism and Police<br />
Legitimacy”<br />
delivered by Lord Ian Blair at Vigyan Bhawan<br />
on 3rd June, 2011<br />
Community Policing and<br />
Communication with Public<br />
is Key to Police Legitimacy<br />
-V.Narayanasamy,<br />
MoS (PP)<br />
Police Legitimacy is based<br />
on the Delicate Balance<br />
between Police Behaviour<br />
and Public Acceptance.<br />
- Lord Ian Blair<br />
Terrorists must be countered<br />
within the Rule <strong>of</strong> Law; Fight<br />
against Corruption should<br />
start at School.<br />
- Amar Pratap Singh,<br />
Director, CBI<br />
DELIVERING the D.P. Kohli Memorial<br />
Lecture on "Counter-Terrorism and<br />
Police Legitimacy" Lord Ian Blair,<br />
Former Commissioner <strong>of</strong> Metropolitan<br />
Police, London (Scotland Yard), said<br />
the world is struggling to contain a<br />
monster called terrorism, in a new<br />
and terrible guise. He opined that the<br />
challenge is that the effort to overcome<br />
terrorism should not threaten the very<br />
legitimacy <strong>of</strong> agencies involved in the<br />
struggle.<br />
Lord Blair said, the legitimacy <strong>of</strong> the<br />
police in dealing with terrorism is not<br />
based solely on adherence to laws, but<br />
on a delicate balance between police<br />
behaviour and public expectations.<br />
He said police legitimacy is nourished<br />
by conformity to rules, procedures<br />
and justifiability <strong>of</strong> the rules in terms<br />
<strong>of</strong> shared beliefs between police and<br />
the public. Recounting his experience<br />
Union Minister <strong>of</strong> State for Personnel<br />
& Public Grievances Shri V.<br />
Narayanasamy said that the excellence<br />
and credibility, associated with the<br />
CBI, are the outcome <strong>of</strong> the systems<br />
and procedures established over the<br />
decades. He said it is appropriate<br />
that the values and ideals <strong>of</strong> late Shri<br />
D.P. Kohli are recollected every year.<br />
Shri Narayanasamy said one <strong>of</strong> the<br />
most important reasons behind the<br />
glorious success stories <strong>of</strong> the CBI is<br />
the tradition <strong>of</strong> its team-work, backed<br />
by painstaking work <strong>of</strong> each member<br />
<strong>of</strong> this team. He said that the terrorism<br />
must be condemned and countered,<br />
and this will have to be done keeping<br />
in mind all provisions <strong>of</strong> law and by<br />
observing human rights. He said it is<br />
only by way <strong>of</strong> strictly observing the<br />
Rule <strong>of</strong> Law that will give legitimacy<br />
to police and other counter-terrorism<br />
agencies. Quoting Mahatma Gandhi,<br />
the Minister said, "In fighting this just<br />
war, we must use means that are<br />
righteous and which are in conformity<br />
with our Constitution". He advocated<br />
the concept <strong>of</strong> community policing<br />
in fighting crime and terrorism.<br />
Shri Narayanasamy said that police<br />
should expend significant resources<br />
in communicating with public and<br />
their communication must always<br />
be sincere, honest, clear, consistent<br />
and reliable. Any information gap,<br />
he said is usually filled by unverified<br />
reports, false leakage to the Media and<br />
CBI Bulletin April - June 20113
umours from unscrupulous elements<br />
<strong>of</strong> the society.<br />
Addressing the gathering, Director,<br />
CBI Shri Amar Pratap Singh advocated<br />
a campaign by society against<br />
corruption. Mr Singh said, the fight<br />
against corruption should start at<br />
school. Referring to the demand for<br />
a comprehensive Lokpal Bill, he said<br />
it would be an autonomous body to<br />
tackle corruption at the highest level.<br />
Shri Amar Pratap Singh said that the<br />
CBI has investigated a number <strong>of</strong> cases<br />
that challenge the legitimacy <strong>of</strong> police<br />
action against alleged terrorists. He<br />
referred to the recent Supreme Court<br />
judgement that fake counter killings<br />
are in the category <strong>of</strong> 'rarest <strong>of</strong> rare'<br />
and policemen found involved in such<br />
killings must be given death sentence.<br />
Director, CBI said police legitimacy<br />
is upheld only when terrorists are<br />
countered within the Rule <strong>of</strong> Law and<br />
in accordance with the oath which<br />
each policeman takes and upholds<br />
under all circumstances.<br />
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Union Minister <strong>of</strong> State for Personnel & Public Grievances Shri V. Narayanasamy<br />
gave away Police Medals on this occasion. The awardees were :<br />
Shri Zaki Ahmed, IPS, the then DIG, CBI, SC-III, Delhi;<br />
Dr. (Ms.) Neeraja Gotru, IPS, DIG, CBI, SC-III, Delhi;<br />
Shri Rakesh Aggarwal, IPS, DIG, CBI, AC-I, Delhi;<br />
Shri Anurag, IPS, DIG, CBI, SU, Delhi;<br />
Shri Mahesh Kumar Aggarwal, IPS, DIG, CBI, ACB, Chandigarh;<br />
Shri Sujeet Pandey, IPS, DIG, CBI Academy, Ghaziabad;<br />
Shri S.J.M. Gillani, IPS, DD (A), CBI HQ, Delhi;<br />
Shri Heimonlang Nongpluh, IPS, DIG, CBI, ACB, Guwahati;<br />
Shri N.M. Singh, Sr. SP, CBI, SCB, Kolkata;<br />
Shri Hari Singh Gurawaria, ASP, CBI, SC-III, Delhi;<br />
Shri Ghanshyam Rai, ASP, CBI, ACB, Lucknow;<br />
Shri S.S. Kishore, ASP, CBI, SC-III, Delhi;<br />
Shri Harish Chander Sharma, ASP, CBI, AC-III, Delhi;<br />
Shri Prashant Kumar Pande, ASP, CBI, ACB, Bhubaneswar;<br />
Shri Sushil Prasad Singh, DSP, CBI, ACB, Pune;<br />
Shri S.K. Sareen, DSP, CBI, BS&FC, Mumbai;<br />
Shri Kalaimani Gopalan, DSP, CBI, SCB, Mumbai;<br />
Shri Sandip Ghosh, DSP, CBI, IPCC, Delhi;<br />
Shri N.R. Nair, the then Inspector, CBI, ACB, Chennai;<br />
Smt. Suresh Balyan Kumar, the then Inspector, CBI, ACB, Mumbai;<br />
Smt. Shama Maruf, Inspector, CBI, ACB, Dehradun;<br />
Shri Roshan Lal Yadav, Inspector, CBI, ACB, Chandigarh;<br />
Shri Ravinder Kumar, Inspector, CBI, AC-III, Delhi;<br />
Shri Manak Chand, Inspector, CBI, ACU-IV, Delhi;<br />
Shri Kumaresan Krishnaswamy, Inspector, CBI, EOW, Chennai;<br />
Shri Raj Rattan, Sub-Inspector, CBI, SU, Delhi;<br />
Shri Ashok Kumar Sharma, the then Sub-Inspector, CBI, AC-III, Delhi;<br />
Shri Sambhu Nath Das, Sub-Inspector, CBI, SCB, Kolkata;<br />
Shri S. Padmanathan, Sub-Inspector, CBI, ACB, Chennai;<br />
Shri Bansi Dhar Tiwari, ASI, CBI, Interpol, Delhi;<br />
Shri Dilbagh Khatri, Head Constable, CBI, EOU-I, Delhi;<br />
Shri Rewel Singh, Head Constable, CBI, SU, Delhi;<br />
Shri Harpal Singh, Head Constable, CBI HQ, Delhi;<br />
Shri Pan Singh Bisht, Head Constable, CBI, EO-II, Delhi;<br />
Shri S.K. Karmakar, Constable, CBI, BS&FC, Kolkata;<br />
Shri K. Abdul Rasheed, Constable, CBI, SCB, Chennai;<br />
Shri S. Ravi, Constable, CBI, SCB, Chennai; and<br />
Shri Om Prakash Bishnoi, Constable, CBI HQ, Delhi.<br />
4 CBI Bulletin April - June 2011
The Future <strong>of</strong> Policing Challenges:<br />
Technology (In) Crimes<br />
PRATAP REDDY, IPS*<br />
INTRODUCTION<br />
USE <strong>of</strong> technology is increasingly<br />
becoming inseparable part <strong>of</strong> Crimes<br />
and the Criminals as such, Policing<br />
as a pr<strong>of</strong>ession cannot remain alo<strong>of</strong><br />
to the technology evolution because<br />
<strong>of</strong> its impact on the day-to-day lives<br />
<strong>of</strong> victims <strong>of</strong> crime. From innocuous<br />
looking text messages on the mobiles<br />
enticing gullible and greedy persons<br />
with promises <strong>of</strong> millions to the<br />
sophisticated bots and network<br />
compromises that were seen in the<br />
incidents <strong>of</strong> the play station network<br />
<strong>of</strong> Sony and the Citibank Card Frauds<br />
recently – the spectrum <strong>of</strong> crimes<br />
involving use <strong>of</strong> technology is only<br />
growing. The ever-increasing role <strong>of</strong> the<br />
Information Technology touching the<br />
lives <strong>of</strong> every citizen in India through<br />
the various e-Governance initiatives<br />
is bringing even ordinary citizens onto<br />
the information highway and thereby<br />
exposing them to the potential risks<br />
associated with the cyberspace. Indian<br />
economy has been served exceptionally<br />
well by the growing Information<br />
Technology Industry and the risks<br />
on the information superhighway if<br />
not addressed, have the potential to<br />
seriously dent the Indian growth story.<br />
The onerous burden <strong>of</strong> not only dealing<br />
with ordinary crimes to sophisticated<br />
crimes, but also ensuring the safety<br />
on the information super highway<br />
by providing the needed response<br />
and, remedy lies at the doorsteps<br />
<strong>of</strong> pr<strong>of</strong>essional Law Enforcement<br />
Agencies. 1<br />
LEGISLATION AND<br />
APPARATUS TO DEAL<br />
WITH CYBER CRIME IN<br />
INDIA<br />
Enactment <strong>of</strong> the Indian Information<br />
Technology Act, 2000 and the<br />
establishment <strong>of</strong> the first Cyber<br />
Crime Police Station at Bangalore<br />
in 2001 signaled the will <strong>of</strong> the<br />
Indian Government and Indian Law<br />
Enforcement Agencies resolve to<br />
tackle the technology crimes in a more<br />
focused way. Since then, almost every<br />
State has created a dedicated Cyber<br />
Crime Police Station and/or Cyber<br />
Crime Cells. The CBI took the initiative<br />
to establish the country's most wellequipped<br />
Cyber and High-tech Crime<br />
<strong>Investigation</strong> and Training Centre<br />
(CHCIT) with the assistance <strong>of</strong> the<br />
Department <strong>of</strong> Information Technology<br />
(DIT), Government <strong>of</strong> India. The<br />
rapid growth and sophistication <strong>of</strong><br />
technologies during the last decade<br />
alone, has led to increasingly newer<br />
types <strong>of</strong> crimes, so far unknown being<br />
reported. The realization that some<br />
important elements were missing in the<br />
I.T. Act, 2000 and the emerging nature<br />
<strong>of</strong> Cyber Crime demanded a substantial<br />
overhaul <strong>of</strong> the I.T. Act, 2000. This<br />
has culminated in the Information<br />
Technology (Amendment) Act, 2008<br />
covering various issues that emerged<br />
with the increased proliferation <strong>of</strong><br />
technology and tools and India's<br />
willingness and preparedness to legally<br />
deal with these emerging challenges <strong>of</strong><br />
technology was amply demonstrated<br />
with the amendment <strong>of</strong> the I.T. Act,<br />
2000 within less than a decade. The<br />
senior police leadership has been<br />
focusing its attention on the capacity<br />
building within Law Enforcement<br />
Departments to deal with technology<br />
crimes with the introduction <strong>of</strong><br />
Cyber Crime modules as part <strong>of</strong> law<br />
enforcement trainings across India.<br />
Public Private Partnerships (PPPs)<br />
like the NASSCOM-DSCI2 Cyber<br />
Security Initiative has been working<br />
with various State Police Departments<br />
through its network <strong>of</strong> Cyber Labs<br />
and is providing training to the Law<br />
Enforcement Officers and other<br />
Government <strong>of</strong>ficials in the areas <strong>of</strong><br />
Cyber Crime <strong>Investigation</strong>s and Cyber<br />
Forensics. Over 8,000 Police personnel<br />
and Prosecution personnel have been<br />
trained at these Cyber Labs.<br />
Despite the efforts from Governments<br />
and Law Enforcement Agencies in<br />
India, there is a huge and unmet need<br />
to build broad-based and specialized<br />
skills among the Law Enforcement<br />
Agencies to tackle the threats posed<br />
by technology crimes.<br />
ISSUES AND CHALLENGES<br />
IN DEALING WITH CYBER<br />
CRIMES<br />
Under-reporting <strong>of</strong> Crimes:<br />
There is a general lack <strong>of</strong> appreciation<br />
at the cutting-edge level Investigators<br />
on the issues arising out <strong>of</strong> Cyber<br />
1<br />
The words 'Technology Crimes' and 'Cyber Crimes' have been used interchangeably in this acrticle.<br />
CBI Bulletin April - June 20115
Crime and the provisions <strong>of</strong> the Indian<br />
Information Technology Amendment<br />
Act, 2008. In the absence <strong>of</strong> the<br />
wherewithal to investigate technology<br />
crimes, a certain tendency is being<br />
seen, wherein the <strong>of</strong>ficers either find it<br />
easier to file the cases simply under the<br />
conventional IPC categories without<br />
invoking the Information Technology<br />
Amendment Act, 2008 or dodge the<br />
registration <strong>of</strong> the crime. Either way,<br />
this is leading to under-reporting <strong>of</strong><br />
technology crimes.<br />
In crimes involving individual victims,<br />
a large number <strong>of</strong> online victims<br />
(generally women) <strong>of</strong> obscenity,<br />
threat, etc., are approaching the Law<br />
Enforcement Authorities for resolution<br />
<strong>of</strong> their grievances and do not wish to<br />
pursue their cases in a Court <strong>of</strong> Law for<br />
fear <strong>of</strong> loss <strong>of</strong> reputation and honour.<br />
Similarly, number <strong>of</strong> individuals,<br />
largely well educated and, people in<br />
high positions, who have fallen victims<br />
to the online frauds (popularly known<br />
as Nigerian Frauds), in majority <strong>of</strong> the<br />
cases do not want to pursue criminal<br />
investigations due to the fear <strong>of</strong><br />
ridicule and they too want amicable<br />
resolution.<br />
The I.T. Industry, <strong>of</strong> late, has started<br />
seeing increasing number <strong>of</strong> crimes<br />
committed by insiders and also by<br />
external organized criminals. While the<br />
industry with its vast internal technical<br />
resources deals with the incidents in a<br />
very serious way, are wary <strong>of</strong> making<br />
public many incidents by reporting<br />
them to law enforcement due to the<br />
concerns <strong>of</strong> enterprise reputational<br />
risks.<br />
Finally, the concerns <strong>of</strong> the enterprises<br />
in the ability <strong>of</strong> the Law Enforcement<br />
Agencies to investigate technically<br />
complex cases and subsequently, the<br />
long time taken for completion <strong>of</strong><br />
trail in Criminal Courts are important<br />
factors discouraging the companies<br />
from reporting the Cyber Crime seen<br />
in their enterprises.<br />
TECHOLOGY-RELATED<br />
CHALLENGES<br />
Internet and the related communication<br />
technologies that evolved over a<br />
period <strong>of</strong> time, were primarily aimed at<br />
enhancing the operational efficiencies<br />
<strong>of</strong> the business enterprises and<br />
subsequently, extended to make the<br />
lives <strong>of</strong> the common citizens seamless<br />
and connected. Vulnerabilities <strong>of</strong> the<br />
networks, systems and various devices<br />
started attracting the attention <strong>of</strong> the<br />
organized criminals and, the ordinary<br />
criminals alike due to easy access and<br />
near anonymity <strong>of</strong> the criminal in<br />
the cyberspace and finally, the ease<br />
<strong>of</strong> launching criminal attack from<br />
anywhere in the world, without any<br />
national geographical restrictions. The<br />
ubiquitous nature <strong>of</strong> the hand-held<br />
devices and their interoperability over<br />
vast networks has added an additional<br />
dimension to the threats from<br />
cyberspace. The retr<strong>of</strong>itting <strong>of</strong> security<br />
technologies and the forensic tools<br />
to dissect and unravel the criminal<br />
acts are complex, not easily available<br />
and, above all, are expensive. The<br />
technology-related issues have made<br />
the job <strong>of</strong> the law enforcement more<br />
complex in investigating technology<br />
crimes. Law Enforcement Agencies<br />
are further handicapped by the lack <strong>of</strong><br />
technical skills among the Investigators<br />
in understanding emerging technologies<br />
and the tools needed for forensically<br />
extracting the needed evidences.<br />
LEGAL AND<br />
JURISDICTIONAL<br />
CHALLENGES<br />
In the conventional <strong>of</strong>fences scenario,<br />
the victim and the perpetrator have<br />
some physical and proximate contact<br />
and this allows the Law Enforcement<br />
Agencies to conclusively connect<br />
the criminal to the crime. However,<br />
in Cyber Crimes, the victim and the<br />
perpetrator need not be physically in<br />
contact and, in fact, they can be located<br />
in two or more geographically distant<br />
locations (<strong>of</strong>ten different countries).<br />
This leads to issues <strong>of</strong> jurisdiction and<br />
compatibility <strong>of</strong> legislations to proceed<br />
against the criminals and finally,<br />
becomes a huge task for the Law<br />
Enforcement Agencies to connect the<br />
perpetrator to the crime. The present<br />
level <strong>of</strong> international cooperation is<br />
not able to effectively deal with transborder<br />
crimes like Cyber Crimes.<br />
NEED FOR A NATIONAL<br />
ACTION PLAN<br />
Keeping in mind the challenges<br />
identified, there is an urgent need to<br />
come up with a National Action Plan<br />
for addressing the challenges posed<br />
by technology crimes. The following<br />
measures will help us address the<br />
issues:<br />
Build Cyber and High-tech Crime<br />
investigations infrastructure with latest<br />
technology and tools, across various<br />
Law Enforcement Agencies in India.<br />
Efforts like the CHCIT <strong>of</strong> CBI and<br />
the CCPS <strong>of</strong> Bangalore needs to be<br />
replicated across India to focus on the<br />
investigations <strong>of</strong> Cyber and High-tech<br />
Crimes.<br />
Make sustained efforts to build<br />
technical skills among the identified<br />
Investigators by imparting them<br />
advanced trainings in Cyber Crime<br />
investigations and Cyber Forensics.<br />
Work on a general plan to create<br />
widespread awareness among the Law<br />
Enforcement Personnel to appreciate<br />
the importance <strong>of</strong> digital evidences,<br />
which have become common feature<br />
even in most <strong>of</strong> the conventional<br />
crimes. This will promote reliance on<br />
scientific evidences rather than bruteforce<br />
investigation methods. The<br />
increasing awareness will also lead to<br />
greater number <strong>of</strong> technology crimes<br />
getting registered at the Police Station<br />
level and thereby solving the problems<br />
<strong>of</strong> under reporting / non-registration <strong>of</strong><br />
technology crimes.<br />
6 CBI Bulletin April - June 2011
Build advanced Cyber Forensics<br />
expertise among the personnel <strong>of</strong><br />
Forensics Sciences Laboratories to<br />
help Investigators to deal with complex<br />
technology crimes.<br />
Work with the Prosecution and<br />
Judiciary to build awareness on the<br />
digital evidences and Cyber Forensics<br />
to enable them to appreciate the<br />
tools and technologies used by the<br />
criminals and the forensics used by the<br />
Investigators.<br />
Overcome the lack <strong>of</strong> internal capacities<br />
among Government agencies and the<br />
Law Enforcement Agencies to deal<br />
with the emerging and fast-paced<br />
changes in technologies by working<br />
with the industry and academia. Such<br />
collaborations will allow the agencies<br />
to avail <strong>of</strong> the services <strong>of</strong> the experts<br />
and advanced tools for technology<br />
crimes resolution.<br />
Enhance collaborations with various<br />
international bodies (Government<br />
bodies, industry and for pr<strong>of</strong>it/not for<br />
pr<strong>of</strong>it bodies) working in the areas <strong>of</strong><br />
enhancing Cyber Security and Cyber<br />
Crimes prevention, so as to bring in<br />
increased cooperation in investigations<br />
<strong>of</strong> Cyber Crimes.<br />
CONCLUSION<br />
The challenges to deal with Cyber Crime are enormous. However, we in India are<br />
uniquely positioned to address the challenges by leveraging –<br />
(a) The vast number <strong>of</strong> technically qualified personnel within the Police Departments,<br />
who can be made future ready to tackle Cyber Crime with appropriate capacitybuilding;<br />
(b) A contemporary legislation dealing comprehensively with various technology-related<br />
crimes; and<br />
(c) A huge and world renowned I.T. Industry with advanced technical expertise in all<br />
emerging areas <strong>of</strong> Information Technology and Communications. It is up to the<br />
Indian Law Enforcement Agencies and its leaders, to leverage these opportunities to<br />
fight the menace <strong>of</strong> Cyber Crimes competently and effectively.<br />
2<br />
NASSCOM (National Association <strong>of</strong> S<strong>of</strong>tware and Service Companies) and DSCI (Data Security Council <strong>of</strong> India).<br />
*<br />
The author is Senior Director, Cyber Security, NASSCOM<br />
CBI Bulletin April - June 20117
Forensic Auditing<br />
J.L. NEGI, GM, RBI, CBI HO, New Delhi.<br />
INTRODUCTION<br />
‘FRAUD’ refers to an intentional act<br />
by one or more individuals among<br />
management, those charged with<br />
governance, employees or third parties<br />
involving the use <strong>of</strong> deception to<br />
obtain an unjust or illegal advantage.<br />
Fraudulent financial reporting<br />
involves intentional misstatements,<br />
in any one or more ways as stated<br />
as deception such as manipulation,<br />
falsification or alteration <strong>of</strong> accounting<br />
records or supporting documents,<br />
misrepresentation in or intentional<br />
omission from the financial statements,<br />
significant events, transactions or<br />
other information, intentional,<br />
misapplication <strong>of</strong> accounting principles<br />
relating to measurement, recognition,<br />
classification, presentation, or<br />
disclosure <strong>of</strong> material transactions.<br />
Accounts may be falsified to conceal<br />
absolute theft <strong>of</strong> money or money’s<br />
value and true results <strong>of</strong> operations<br />
or financial position <strong>of</strong> the entity with<br />
a view to prevent timely detection <strong>of</strong><br />
frauds. Detection <strong>of</strong> fraud is necessary<br />
to book the fraudster. There are many<br />
methods by which fraud can be<br />
detected and investigated and one <strong>of</strong><br />
such method is forensic auditing.<br />
For any entity, the biggest challenge<br />
is to prevent leakages and fraudulent<br />
activities present in the system. Placing<br />
the internal controls in place, having<br />
proper internal and forensic auditing<br />
strategies should form a significant part<br />
<strong>of</strong> the Implementation Guidelines.<br />
Major accounting scandals involving<br />
Enron, Worldtel, Parmalat and Satyam<br />
have been widely reported. In all these<br />
cases, the methods and purpose <strong>of</strong><br />
manipulations in financial statements<br />
were peculiar to the motives <strong>of</strong> such<br />
manipulations. Such frauds were<br />
successfully investigated with the aid<br />
<strong>of</strong> forensic auditing.<br />
The objective <strong>of</strong> forensic audit is to<br />
find whether or not a fraud has taken<br />
place. Forensic auditor shall have to<br />
examine voluminous records and<br />
witnesses, if permitted by law. Proper<br />
documentation is vital in substantiating<br />
the findings. The auditors need to have<br />
a fair knowledge <strong>of</strong> entity’s business and<br />
legal environment. They should also<br />
have awareness <strong>of</strong> computer-assisted<br />
audit procedure for carrying out proper<br />
forensic audit. The forensic audit also<br />
requires an innovative approach from<br />
the auditors, so that they are able to<br />
outsmart the fraudster.<br />
DEFINITION<br />
Forensic auditing is examination<br />
<strong>of</strong> an organization’s or individual’s<br />
economic affairs, resulting in a report<br />
designed especially for use in a Court<br />
<strong>of</strong> Law. Forensic audit is similar to the<br />
tax audit. Both strive to establish a<br />
comprehensive picture <strong>of</strong> an entity’s<br />
finance (assets, liabilities, total income,<br />
and cash flow). However, while a tax<br />
audit is intended to determine the<br />
true size <strong>of</strong> one’s tax liability, forensic<br />
audit can have several goals, including<br />
mapping cash flow/cash transactions,<br />
indentifying accounting errors and<br />
enumerating total assets. Forensic<br />
auditing involves examination <strong>of</strong><br />
legalities and financial audits. The<br />
objective is to find out whether or not<br />
true business value has been reflected<br />
in the financial statement and in the<br />
course <strong>of</strong> examination to find whether<br />
any fraud has taken place.<br />
The term ‘forensic audit’ has not<br />
been clearly defined anywhere.<br />
However, the object is to relate the<br />
findings <strong>of</strong> audit by gathering legally<br />
tenable evidence and in doing so, the<br />
corporate veil can be lifted (in case<br />
<strong>of</strong> corporate entities) to indentify the<br />
fraud and the persons responsible for<br />
it (a criminal <strong>of</strong>fence).<br />
A forensic auditor is supposed to<br />
have expertise in one or more <strong>of</strong><br />
relevant disciplines like auditing, fraud<br />
examination, accounting, law, and<br />
computer technologies apart from the<br />
investigative skills to collect, analyze<br />
and evaluate evidential matter and<br />
to interpret and communicate the<br />
observations and findings. Forensic<br />
audits are used whenever Law<br />
Enforcement Agencies need reliable<br />
data on parties’ financial status or<br />
activities.<br />
ELEMENTS OF FORENSIC<br />
AUDITING AND AREAS OF<br />
APPLICATION<br />
Forensic auditors begin by taking<br />
all the accounts, inventories, assets,<br />
capital and other economic elements<br />
and determining how they should<br />
work together. To use an example, if<br />
an auditor sees that a business grosses<br />
Rs. 10 crore a year, he assumes that the<br />
pr<strong>of</strong>its, cash, new capital, inventories,<br />
payroll, rent and other costs add<br />
up to Rs. 10 crore. He looks at the<br />
pr<strong>of</strong>its, cash, etc., and checks how<br />
they ought to interact (e.g. in some<br />
cases, an systemic overlap between<br />
certain values, which the accountant<br />
would make note <strong>of</strong> so as not to<br />
overcount. Once he has collected all<br />
<strong>of</strong> the elements (as well as caveats) he<br />
8 CBI Bulletin April - June 2011
would establish an ideal model as to<br />
how each side <strong>of</strong> the balance sheet<br />
should read. Auditing for fraud is as<br />
much <strong>of</strong> an intuitive process as it is a<br />
formal, analytic methodology. It is as<br />
much <strong>of</strong> an art as it is a science. Skill<br />
depends on the right mind-set (like<br />
thinking like a fraudster, keen eye to<br />
look at weaknesses in controls) and<br />
practice. The requirement is not just<br />
to master the techniques <strong>of</strong> forensic<br />
audit but also to have the required<br />
mental disposition <strong>of</strong> doggedness and<br />
persistence. There is a rising trend <strong>of</strong><br />
frauds involving small amounts, so that<br />
these do not get highlighted easily.<br />
The truth is that today is an age <strong>of</strong><br />
complexity where new technological<br />
developments have spurred<br />
developments in so many walks <strong>of</strong> life<br />
and subject areas. Concentrating on the<br />
financial system, the financial system<br />
infrastructure is mainly dependent<br />
on the technology backbone. New<br />
types <strong>of</strong> products including derivatives<br />
and various delivery channels are<br />
simply impossible to design, build<br />
and implement without availability <strong>of</strong><br />
computing technologies.<br />
Product innovation and their<br />
complexities in globalized and<br />
competitive world have created a<br />
plethora <strong>of</strong> accounting rules and<br />
other regulations impacting the way<br />
transactions are stored, recorded and<br />
valued. This milieu has led to increased<br />
susceptibility to mask fraudulent<br />
activities.<br />
The penetration <strong>of</strong> technology has led<br />
to a situation that clear trail <strong>of</strong> a financial<br />
transaction can be made possible only<br />
after drilling through several layers <strong>of</strong><br />
technologies in addition to the human<br />
component. Forensic accounting<br />
methodologies is imperative to fully<br />
decrypt and decipher the mechanics<br />
<strong>of</strong> the complex financial transaction<br />
and conclude about the presence<br />
<strong>of</strong> a fraud and to present the case in<br />
manner amenable and acceptable in a<br />
Court <strong>of</strong> Law.<br />
Facing a rising volume <strong>of</strong> frauds and<br />
involvement <strong>of</strong> the employees in a<br />
large number <strong>of</strong> cases, the country’s<br />
financial system has geared up to use<br />
IT-enabled forensic audit system to<br />
counter it. More and more corporates<br />
are making attempts to use IT-enabled<br />
solutions for proactive data analysis.<br />
But use <strong>of</strong> IT in fraud detection is<br />
still in the nascent stage. Despite<br />
advancement in IT, most frauds are<br />
still being detected through internal<br />
audits, regulatory inspections, surprise<br />
visits by vigilance team and complaints<br />
received from public.<br />
INTEGRATION OF<br />
FORENSIC AUDITING<br />
WITH REGULAR<br />
INVESTIGATION<br />
In India, there are agencies which are<br />
responsible for investigating fraud and<br />
corruption. To make their effectiveness<br />
better, there is a need to integrate<br />
forensic auditing with the traditional<br />
tools used by the investigating<br />
agencies. The forensic auditing can<br />
provide preliminary data upon which<br />
these investigating agencies can<br />
base their investigations. The formal<br />
wedding between forensic auditing<br />
and investigating agencies can go a<br />
long way in preventing frauds. Fraud<br />
investigation requires competence in<br />
forensic audit and also technical and<br />
transactional expertise.<br />
Normal Audit Vs. Forensic<br />
Audit<br />
It is essential that differences between<br />
the normal audit and forensic auditing<br />
are clearly understood and appreciated.<br />
The questions the forensic auditor<br />
has uppermost in mind are not how<br />
an accounting system and internal<br />
controls stack up against applicable<br />
standards, but rather to understand<br />
and analyze;<br />
Where are the weakest links in<br />
the system’s chain <strong>of</strong> controls?<br />
What deviations from<br />
conventional good accounting<br />
practices and/or rules or<br />
guidelines are possible in the<br />
system?<br />
How are <strong>of</strong>f-line transaction<br />
handled?<br />
Who can authorize such<br />
transactions?<br />
What would be the simplest way<br />
to compromise this system?<br />
What control features in the<br />
system can be by passed by<br />
higher authorities?<br />
What is the nature <strong>of</strong> the work<br />
environment and<br />
What are the provisions on<br />
manual intervention?<br />
Comparison between normal<br />
audit evidence and forensic audit<br />
evidence includes many aspects<br />
like documentation verses public<br />
document searches, inquiry verses<br />
interviewing, confirmation verses<br />
varied alternative sources, physical<br />
examination verses electronic<br />
laboratory analysis <strong>of</strong> evidence, reperformance<br />
verses detailed analysis <strong>of</strong><br />
electronic data and observation verses<br />
surveillance. Most <strong>of</strong> the corporate<br />
by statute are required to engage<br />
Statutory Auditors to audit the balance<br />
sheet. The auditors do the auditing<br />
<strong>of</strong> the financial statements on the<br />
basis <strong>of</strong> information provided by the<br />
management. They cannot do detailed<br />
auditing as mandate does not give the<br />
scope <strong>of</strong> such auditing. Moreover<br />
they do not do the investigative work.<br />
There are distinct differences between<br />
Statutory Audit and Forensic Audit<br />
which are as under:<br />
CBI Bulletin April - June 20119
Sl. No. Function Statutory Audit Forensic Audit<br />
1. Objective Express opinion as to ‘true & fair’<br />
presentation.<br />
2. Techniques ‘Substantive’ and ‘compliance’<br />
procedures.<br />
3. Period Normally, all transactions <strong>of</strong> the<br />
particular accounting period.<br />
4. Verification <strong>of</strong> stock, Relies on the management<br />
estimation <strong>of</strong> realizable value certificate/representation <strong>of</strong><br />
<strong>of</strong> current assets, provisions/ management.<br />
Liability estimation, etc.<br />
5. Off balance-sheet items (like<br />
contracts, etc.)<br />
Used to vouch the arithmetic<br />
accuracy & compliance with<br />
procedures.<br />
6. Adverse findings, if any Negative opinion or qualified<br />
opinion expressed, with/without<br />
quantification.<br />
Determine correctness <strong>of</strong> the accounts<br />
or whether any fraud has actually taken<br />
place.<br />
Analysis <strong>of</strong> past trend and substantive<br />
or ‘in depth’ checking <strong>of</strong> selected<br />
transactions.<br />
No such limitations. Accounts may be<br />
examined in detail from the beginning.<br />
Independent verification <strong>of</strong> suspected/<br />
selected items carried out.<br />
Regularity and propriety <strong>of</strong> these<br />
transactions/contracts are examined.<br />
Legal determination <strong>of</strong> fraud and naming<br />
persons behind such frauds.<br />
Pr<strong>of</strong>essional auditing standards have<br />
enjoined upon auditors to consider<br />
the risks <strong>of</strong> material misstatements<br />
due to a fraud. During the course <strong>of</strong><br />
an audit, evidence or information<br />
may come to the auditor’s attention<br />
that fraud may have occurred and<br />
the auditor maintains an obligation<br />
to perform sufficient audit work to<br />
obtain reasonable assurance that the<br />
financial statements are not materially<br />
misstated. In such a circumstance it<br />
may become necessary to involve a<br />
forensic specialist in order to obtain<br />
the appropriate level <strong>of</strong> assurance with<br />
respect to the financial statements.<br />
Propriety Audit v. Forensic Audit<br />
There is also difference between<br />
Propriety Audit and Forensic Auditing.<br />
The propriety audit is not complete<br />
in itself and it can be supplemented<br />
by forensic auditing. Propriety audit<br />
is conducted by Supreme Audit<br />
Institutions (SAI) to report on whether<br />
Government accounts, i.e., all<br />
expenditure sanctioned and incurred<br />
are need-based and all revenues due<br />
to Government have been realized in<br />
time and credited to the Government<br />
account. In conducting the propriety<br />
audit, “Value for Money audit”<br />
technique aims at lending assurance<br />
that economy, efficiency and<br />
efficacy have been achieved in the<br />
transactions for which expenditure has<br />
been incurred or revenue collected is<br />
usually applied. The same analogy,<br />
with modifications to the principles <strong>of</strong><br />
propriety <strong>of</strong> public finance, applies in<br />
forensic audit to establish fraudulent<br />
intentions if any, on the part <strong>of</strong> the<br />
management. Financial frauds results<br />
<strong>of</strong> wasteful, unwarranted and unfruitful<br />
expenditure or diversion <strong>of</strong> funds<br />
by the investigated entity to another<br />
entity.<br />
TECHNIQUES OF<br />
FORENSIC AUDITING<br />
One <strong>of</strong> the techniques is a case <strong>of</strong><br />
unintentional errors (mistakes) or<br />
fraud. The Benford’s law states that<br />
fabricated figures as indicators <strong>of</strong><br />
fraud possess a different pattern from<br />
random or valid figures. On detecting<br />
any such phenomenon, the variable<br />
is subjected to a detailed scrutiny.<br />
Relative Size Factor detects outliers<br />
or unusual data, which may be due<br />
to either simple errors or frauds based<br />
on the basic concept that each field<br />
in any transaction has a normal range<br />
and any data falling outside the range<br />
is unusual or an outlier and need to be<br />
further, investigated. There are many<br />
other techniques <strong>of</strong> forensic auditing.<br />
Two <strong>of</strong> the important techniques are<br />
discussed in this article.<br />
(a)<br />
Data Mining and Data Analysis<br />
Technique – Data mining can<br />
be used as a forensic auditing<br />
technique which involves use<br />
<strong>of</strong> computer-assisted technique<br />
to mine large volumes <strong>of</strong> data<br />
for new, hidden or unexpected<br />
information or patterns. Data<br />
mining techniques are categorized<br />
into Discovery, Predictive<br />
Modeling and Deviation and Link<br />
analysis. One <strong>of</strong> the best ways<br />
<strong>of</strong> addressing the challenge <strong>of</strong><br />
fraud, waste and abuse is through<br />
computer matching. Regarded<br />
as effective management tool,<br />
matching techniques can be<br />
used to examine extremely large<br />
amounts <strong>of</strong> computerized data<br />
10 CBI Bulletin April - June 2011
(b)<br />
quickly and cheaply. The ability<br />
to match computer data or in<br />
modern terms data mine has<br />
come a long way as evidenced<br />
in burgeoning forensic auditing<br />
field. Data analysis is, in fact, one<br />
<strong>of</strong> the most important techniques<br />
for any auditing leave alone the<br />
forensic auditing and it can help<br />
in giving audit a meaningful<br />
direction. Database can be<br />
used for generating meaningful<br />
information which can provide<br />
useful feed for auditors going<br />
to audit on the ground. The<br />
database generated by various<br />
filed units can be operated upon<br />
by some data mining s<strong>of</strong>tware,<br />
such as ACL (Audit Command<br />
Language) which will throw all<br />
the exceptions in a financial<br />
year. Similarly, various types <strong>of</strong><br />
exceptions can be generated both<br />
on the revenue and expenditure<br />
side. The analysis <strong>of</strong> data can give<br />
useful trends which can be used<br />
for analyzing control weaknesses<br />
and also for putting a proper<br />
control system in place.<br />
Critical Point Auditing Technique<br />
- Critical point auditing technique<br />
aims at filtering out the symptoms<br />
<strong>of</strong> fraud from regular and normal<br />
transactions in which they are<br />
mixed or concealed. For this<br />
purpose, financial statement,<br />
books, records, etc. are analyzed<br />
mainly to find out:<br />
(i) Trend-analysis by tabulating<br />
significant financial transactions;<br />
(ii)<br />
Unusual debits/credits in accounts<br />
normally closing to credit/debit<br />
balances respectively;<br />
(iii) Discrepancies in receivable<br />
or payable balances inventory<br />
as evidenced from the nonreconciliation<br />
between financial<br />
records and corresponding<br />
subsidiary records (like physical<br />
verification statement, priced<br />
stores lodgers, personal ledgers,<br />
etc.);<br />
(iv) Accumulation <strong>of</strong> debit balances in<br />
loosely controlled accounts (like<br />
deferred revenue expenditure<br />
accounts, mandatory spares<br />
account capitalized as addition<br />
to respective machinery item,<br />
etc.);<br />
(v) False credits to boost sales with<br />
corresponding debits to nonexistent<br />
(dummy) personal<br />
accounts;<br />
(vi) Cross debits and credits and<br />
inter-accounts transfers; and<br />
(vii) Weaknesses/inadequacies in<br />
internal control/check systems,<br />
liked delayed/non-preparation <strong>of</strong><br />
bank reconciliation statements,<br />
etc. Forensic auditing should<br />
focus on significant transactions.<br />
The critical point auditing<br />
technique emphasizes on<br />
trend analysis by tabulating<br />
significant financial transactions,<br />
detecting unusual debit and<br />
credit balances. The techniques<br />
also focuses on weaknesses/<br />
inadequacies in internal control/<br />
check system like delayed or non<br />
reconciliation <strong>of</strong> figures reported<br />
through accounts. The analysis<br />
<strong>of</strong> these can help in bringing out<br />
significant deviations. Besides,<br />
the techniques also emphasizes<br />
on finding out false debit or credit<br />
entries to detect frauds related<br />
with omission or commission.<br />
The Computer-Assisted Auditing<br />
Tools (CAATs) are used to deal<br />
with auditing in computerized<br />
environment for querying<br />
large datasets and to process<br />
complex transactions, thereby<br />
saving time and improving<br />
effectiveness. The tools help an<br />
auditor in implementing auditing<br />
procedures such as testing details<br />
<strong>of</strong> transactions and balances,<br />
identifying inconsistencies or<br />
significant fluctuations in the<br />
datasets being tested, testing<br />
general as well as application<br />
control <strong>of</strong> computer systems,<br />
re-performance <strong>of</strong> calculations<br />
performed by application or<br />
accounting systems among other<br />
areas.<br />
STEPS TO BE FOLLOWED<br />
IN FORENSIC AUDITING<br />
Certain steps would be required to<br />
establish a viable forensic auditing in<br />
unearthing the fraud;<br />
(1) Identify the Risks: The risk<br />
matrix needs to be established<br />
to identify the risk by doing<br />
analysis on distribution chain,<br />
level <strong>of</strong> awareness, absence <strong>of</strong><br />
a proper grievance mechanism,<br />
non integration <strong>of</strong> accounts, noncreation<br />
<strong>of</strong> asset created out <strong>of</strong> the<br />
fraud amount, lack <strong>of</strong> appropriate<br />
documentation, the structure<br />
<strong>of</strong> management information<br />
systems, the frequency <strong>of</strong> the<br />
irregularities, etc.<br />
(2) Determine how these risks can<br />
be exploited: Each <strong>of</strong> risks can<br />
lead to siphoning <strong>of</strong>f the money.<br />
The risk may be examined to<br />
establish integrity <strong>of</strong> the data<br />
and end-use <strong>of</strong> the funds. Each<br />
<strong>of</strong> the risks can be exploited and<br />
has got a potential for fraud and<br />
therefore, needs to be addressed<br />
carefully.<br />
(3) Availability <strong>of</strong> information: This<br />
is a significant aspect <strong>of</strong> forensic<br />
auditing. The form and content <strong>of</strong><br />
information has a direct bearing<br />
on any investigation. The auditors<br />
should be thoroughly familiar<br />
with the rules & regulations to<br />
identify the source <strong>of</strong> information<br />
and also to determine how it can<br />
be used for drawing inferences.<br />
The actual expenditure should<br />
be linked to asset created and<br />
CBI Bulletin April - June 201111
to compare it with some preestablished<br />
benchmarks. Getting<br />
hold <strong>of</strong> relevant information<br />
is very critical for any fraud<br />
investigation.<br />
(4) Develop Forensic Testing<br />
Protocols: This step would<br />
require a proper design <strong>of</strong><br />
forensic auditing protocols,<br />
such as sample size for data<br />
testing, fraud risk questionnaire,<br />
developing operations flow chart<br />
and analyzing various aspects <strong>of</strong><br />
those operations, developing a<br />
cause and effect relationship for<br />
various problems anticipated in<br />
the project etc. There are three<br />
phases to develop effective antifraud<br />
devices; assess, improve and<br />
monitor. A fraud risk assessment<br />
is a proactive step that can be<br />
taken to identify areas that pose a<br />
high risk <strong>of</strong> fraud. Once the risks<br />
are identified, a gap analysis can<br />
be completed and improvements<br />
can be recommended to mitigate<br />
the fraud risks, which can be<br />
subsequently monitored. The gap<br />
analysis and recommendations<br />
would typically be completed by<br />
a team separate from the team<br />
that will ultimately audit the<br />
improvements. A response plan<br />
should be put in place to ensure<br />
that there is a process to address<br />
any frauds that arise.<br />
(5) Perform data mining: Data<br />
analysis and data mining is the<br />
most important aspect <strong>of</strong> any<br />
forensic audit protocol. Thus,<br />
digitization <strong>of</strong> the ground data<br />
is quite significant for generating<br />
essential forensic auditing<br />
protocol. The use <strong>of</strong> data<br />
mining s<strong>of</strong>tware would imply<br />
that the entire database has<br />
been examined and the residual<br />
errors which are characteristic<br />
<strong>of</strong> any sampling plan would<br />
automatically be eliminated from<br />
the system.<br />
(6) Analyze the results <strong>of</strong> data<br />
mining: Analysis <strong>of</strong> results <strong>of</strong> data<br />
mining would be significant for<br />
drawing conclusions. Analytical<br />
procedures can use for analyzing<br />
results <strong>of</strong> data mining. These<br />
procedures include comparing<br />
the trends in the current year<br />
with last year’s trend, projection<br />
<strong>of</strong> trend in various quarters <strong>of</strong> the<br />
current financial year, analysis <strong>of</strong><br />
any abnormal variations in the<br />
trend, analysis <strong>of</strong> performance<br />
indicators. These analytical<br />
procedures can be applied on<br />
the data mined from the database<br />
to firm up conclusions regarding<br />
the operations. The analytical<br />
procedures help in proper<br />
interpretation <strong>of</strong> data.<br />
(7) Use the results <strong>of</strong> data mining:<br />
The results <strong>of</strong> data mining can<br />
be used where the likelihood<br />
<strong>of</strong> fraud is high and significant<br />
deviations are noted in data<br />
mining. This would help in saving<br />
a lot on the total audit resources<br />
required in conducting the actual<br />
audit at the field level as the audit<br />
teams will not be required to go<br />
to all the field locations.<br />
(8) Sharing experiences and best<br />
practices: Experience sharing<br />
and training would form a part <strong>of</strong><br />
Forensic Auditing protocol. The<br />
forensic auditing discipline needs<br />
to be cultivated further.<br />
PRESENT STATUS IN CBI<br />
Presently, CBI is investigating cases<br />
involving financial, economic and bank<br />
frauds and use <strong>of</strong> forensic auditing<br />
is seen. During the investigation, the<br />
evidences are gathered and presented<br />
before the Court <strong>of</strong> Law to prove<br />
the charged. The element <strong>of</strong> tracing<br />
<strong>of</strong> the funds out <strong>of</strong> the proceeds <strong>of</strong><br />
crime and attachment <strong>of</strong> property out<br />
<strong>of</strong> the proceeds <strong>of</strong> the crime is being<br />
attempted by CBI in some big cases<br />
investigated by it. In order to unearth<br />
the benefit <strong>of</strong> fraud derived out <strong>of</strong> the<br />
proceeds <strong>of</strong> the crime by the fraudsters,<br />
tracing <strong>of</strong> the funds is essential and<br />
with the help <strong>of</strong> experts, CBI is tracing<br />
the funds out <strong>of</strong> the fraud amount. The<br />
detailed investigation is undertaken<br />
to collect the route followed by the<br />
fraudsters in diversion <strong>of</strong> the funds,<br />
so that the assets acquired out <strong>of</strong> the<br />
proceeds <strong>of</strong> the crime can be traced.<br />
After tracing <strong>of</strong> the proceeds <strong>of</strong> the<br />
crime, attachment <strong>of</strong> such properties<br />
is attended to. The attachment <strong>of</strong><br />
the property can be made either<br />
under the provisions <strong>of</strong> Criminal law<br />
(Amendment) Ordinance, 1944 or<br />
under the provisions <strong>of</strong> Prevention<br />
<strong>of</strong> Money Laundering Act, 2002. In<br />
order to attach the property, credible<br />
documentary evidence is required<br />
which can be tested before the Court<br />
<strong>of</strong> Law to prove that property sought<br />
to be attached is acquired out <strong>of</strong> the<br />
proceeds <strong>of</strong> the crime. This can be<br />
made possible by wedding <strong>of</strong> time<br />
tested method <strong>of</strong> investigation with<br />
forensic auditing.<br />
The forensic auditing with the help <strong>of</strong><br />
computers has been extensively used<br />
in the case <strong>of</strong> Satyam Scam investigated<br />
by CBI. Certain sections <strong>of</strong> employees<br />
<strong>of</strong> the Satyam in connivance with<br />
MD and CMD have hidden the fake<br />
invoices in their systems by swapping<br />
the strings S (show) by H (hide) and<br />
H by S, thereby deceived the large<br />
majority <strong>of</strong> employees <strong>of</strong> the company<br />
who were the stakeowners. The<br />
modus operandi was unearthed by<br />
CBI by running a programme on the<br />
system by reversing the role <strong>of</strong> S and<br />
H, thereby the existence <strong>of</strong> 7651 fake<br />
invoices worth <strong>of</strong> Rs. 5118 crore was<br />
unearthed. This was doubly confirmed<br />
through the employees who were<br />
shown as executors <strong>of</strong> the projects<br />
and information obtained from the<br />
banks who did not receive cash from<br />
fake customers. The employees who<br />
did the manipulation and customers<br />
against whom fake sales were shown<br />
also confirmed the manipulation in<br />
12 CBI Bulletin April - June 2011
the records. The generation <strong>of</strong> invoices<br />
was retrieved from data mining,<br />
which runs into millions <strong>of</strong> records.<br />
The author <strong>of</strong> the fake invoices were<br />
detected through swipe card details<br />
especially where Machine No., ID No.<br />
were completely destroyed/eliminated<br />
and passwords were extensively<br />
compromised. Certain fake invoices<br />
to the extent <strong>of</strong> Rs. 430 crore was<br />
unearthed with the help <strong>of</strong> detailed<br />
audit trail tracing the e-mails which<br />
were created in India but masked<br />
as the mail originated overseas. On<br />
the basis <strong>of</strong> deceptive mails certain<br />
products were developed without the<br />
specifications <strong>of</strong> the customers and<br />
after booking <strong>of</strong> the revenue, products<br />
were not delivered to customers<br />
but were achieved. The author <strong>of</strong><br />
the mail was detected with the help<br />
<strong>of</strong> computer and service provider.<br />
The promoters <strong>of</strong> the company have<br />
diverted the money by floating 237<br />
front companies. The amount was<br />
layered in such a way to deceive the<br />
stakeholders. The layering <strong>of</strong> the funds<br />
was traced through detailed auditing<br />
which helped the investigating agency<br />
to present the credible evidence<br />
before the Court. 6,000 acres <strong>of</strong> land<br />
were purchased by the promoters out<br />
<strong>of</strong> the proceeds <strong>of</strong> the crime which<br />
were traced. Enforcement Directorate<br />
has already initiated action to attach<br />
the properties acquired after 1st<br />
July, 2005. The balance-sheet <strong>of</strong> the<br />
company was manipulated where<br />
loans taken from front companies and<br />
banks were not shown as liability in<br />
the balance sheet. The asset side was<br />
manipulated by showing equivalent<br />
amount <strong>of</strong> loans transferred from Bank<br />
<strong>of</strong> Baroda, New York against amount<br />
collected against fictitious sales.<br />
These fraudulent transactions were<br />
detected by preparing monthly cash<br />
flow statements as well as scrutiny <strong>of</strong><br />
vouchers.<br />
CBI is building capacity amongst its<br />
<strong>of</strong>ficers by way <strong>of</strong> training to equip<br />
them with tools and techniques <strong>of</strong><br />
forensic auditing for its extensive<br />
application in successful detection and<br />
prosecution <strong>of</strong> financial frauds.<br />
CONCLUSION<br />
Forensic auditing is a comprehensive auditing tool. Once it is completed, the<br />
organization’s key stakeholders should capitalize on the work by implementing<br />
controls to reduce the risk associated with the event identified as having material<br />
and significant ratings and being most likely to occur. The strength <strong>of</strong> current controls<br />
in place and whether they are preventive controls or detective controls are taken into<br />
consideration. Can the current controls be overridden or circumvented? Future audit<br />
programmes should include test on the design and implementation <strong>of</strong> these controls.<br />
If an event has been identified as inconsequential, forensic auditors may decide to<br />
take no action; even so, at least it would be documented and management would<br />
be aware <strong>of</strong> its existence. The forensic risk assessment is not the end <strong>of</strong> the process.<br />
Circumstances change constantly and some changes may trigger the need to revise<br />
the assessment. A fraud risk assessment process should be ongoing, dynamic and<br />
reflect the organization’s current business conditions. Forensic auditing combines<br />
legalities alongside the techniques <strong>of</strong> propriety (VFM audit), regularly, investigate and<br />
financial audits. The main aim is to find out whether or not true business value has<br />
been reflected in the financial statements and whether any fraud has taken place.<br />
In future, more and more organizations will be adopting forensic auditing tools to<br />
strengthen their systems and controls, given its inherent strength and advantages.<br />
CBI Bulletin April - June 201113
The Wave <strong>of</strong> Future...<br />
IN today’s computing world, it can<br />
<strong>of</strong>ten feel like we are drowning in<br />
wave after wave <strong>of</strong> new trends. Cloud<br />
Computing is one such big wave.<br />
EXPANDING CYBERSPACE<br />
In recent decades, “cyberspace”<br />
has grown phenomenally. An<br />
interconnected global digital<br />
infrastructure, cyberspace includes the<br />
Internet, computer systems, hardware,<br />
s<strong>of</strong>tware & services and digital<br />
information. Collectively, cyberspace<br />
has brought unprecedented economic<br />
growth, opportunity, and prosperity.<br />
It is the nervous system <strong>of</strong> today’s<br />
economy - most <strong>of</strong> our major economic<br />
institutions would not operate<br />
without it. It enables e-commerce,<br />
e-government, information-sharing<br />
and trade.<br />
Cyberspace also evolves quickly.<br />
Technologically, the connectivity,<br />
devices and uses <strong>of</strong> today - computing<br />
tablets, home networks, smart meters,<br />
cloud computing, social networks -<br />
have made the cyberspace <strong>of</strong> today<br />
radically different from that <strong>of</strong> five<br />
years ago. Demographically, young<br />
generations view social networking and<br />
online collaboration as parts <strong>of</strong> their<br />
daily lives. Geopolitically, cyberspace<br />
is expanding across borders, making<br />
the world smaller. Cyberspace will<br />
continue to evolve and change and<br />
its future is exciting and in many ways<br />
unpredictable.<br />
WHAT IS CLOUD<br />
COMPUTING?<br />
The term cloud computing “comes<br />
from the early days <strong>of</strong> the Internet<br />
where we drew the network as a<br />
cloud… we didn’t care where the<br />
messages went… the cloud hid it from<br />
us.” – Kevin Marks, Google<br />
While there has been much debate<br />
over what cloud computing means,<br />
in reality, the term is generic. Cloud<br />
computing is a future where companies<br />
won’t host their own infrastructure.<br />
It is a result <strong>of</strong> commoditization <strong>of</strong><br />
IT services. In other words, it’s a<br />
transition <strong>of</strong> a once-exciting and new<br />
activity (an innovation) i.e. internet<br />
into a more commonplace and<br />
standardized commodity. All business<br />
activities keep on moving on this path<br />
<strong>of</strong> innovation to commoditization. The<br />
perfect example for this is electricity or<br />
water services.<br />
Akansha Gupta*<br />
There was a time when every<br />
household, town, farm or village had<br />
its own water well. Today, shared<br />
public utilities give us access to clean<br />
water by simply turning on the tap;<br />
cloud computing works in a similar<br />
fashion. Just like water from the tap<br />
in our kitchen, cloud computing<br />
services can be turned on or <strong>of</strong>f<br />
quickly as needed. Like at the water<br />
company, there is a team <strong>of</strong> dedicated<br />
pr<strong>of</strong>essionals making sure the service<br />
provided is safe, secure and available<br />
on a 24/7 basis. When the tap isn't on,<br />
not only are we saving water, but we<br />
aren't paying for resources we don't<br />
currently need.<br />
In the term ‘Cloud Computing’, the<br />
word "cloud" is used as a metaphor<br />
for "the Internet," so the phrase "cloud<br />
computing" is used to mean a type<br />
<strong>of</strong> Internet-based computing, where<br />
services (such as servers, storage,<br />
applications and so on) are delivered<br />
14 CBI Bulletin April - June 2011
to an organization's computers and<br />
devices through the Internet as an ondemand<br />
service.<br />
CHARACTERSTICS OF<br />
CLOUD COMPUTING<br />
As per definition <strong>of</strong> ‘The National<br />
Institute <strong>of</strong> Standards and Technology<br />
(NIST)’, the cloud model promotes<br />
availability and is composed <strong>of</strong> five<br />
essential characteristics:<br />
On-demand self-service,<br />
Broad network access,<br />
Resource pooling,<br />
Rapid elasticity,<br />
Measured Service.<br />
Three service models:<br />
Cloud S<strong>of</strong>tware as a Service<br />
(SaaS),<br />
Cloud Platform as a Service<br />
(PaaS),<br />
Cloud Infrastructure as a Service<br />
(IaaS));<br />
and four deployment mode ls:<br />
Private cloud,<br />
Community cloud,<br />
Public cloud,<br />
Hybrid cloud.<br />
PROS AND CONS<br />
Over the past several years, cloud<br />
computing has begun to expand<br />
in the business community. One<br />
<strong>of</strong> its major advantages is that a<br />
business does not need to have any<br />
knowledge, expertise, or control <strong>of</strong><br />
the infrastructure. Obviously, this can<br />
become a huge cost savings for those<br />
businesses who utilize the services<br />
inherent with cloud computing.<br />
For instance, some services include<br />
online business applications that are<br />
accessible through any browser from<br />
any computer. The actual s<strong>of</strong>tware and<br />
data resides on servers external to the<br />
business itself. It is easy to understand<br />
how this becomes very attractive to<br />
businesses; they would not have to<br />
invest huge sums <strong>of</strong> money in s<strong>of</strong>tware<br />
and hardware. Since they do not own<br />
the host infrastructure, they only pay<br />
the provider for services and resources<br />
they consume.<br />
Although, cloud computing might<br />
appear attractive to a business, it is not<br />
without its own unique problems and<br />
concerns. Accessing a remote server to<br />
initiate an application via the Internet<br />
presents several obvious security risks.<br />
Storage <strong>of</strong> sensitive corporate data<br />
on a remote server raises concerns<br />
regarding the privacy and accessibility<br />
<strong>of</strong> that data by an unauthorized second<br />
party. The business or customer is not<br />
generally aware <strong>of</strong> the physical location<br />
<strong>of</strong> the data. Likewise, they may not<br />
be able to discern what policies/<br />
procedures are in place to recover<br />
data should a server crash or become<br />
compromised. Legal and regulatory<br />
requirements and compliances may<br />
be lacking in the location(s) where<br />
the data is actually stored. The longterm<br />
viability <strong>of</strong> the data itself and<br />
its availability could become a major<br />
issue should the provider no longer<br />
<strong>of</strong>fer the services due to bankruptcy,<br />
going out <strong>of</strong> business, or merging with<br />
another company.<br />
LAW ENFORCEMENT<br />
CONCERNS<br />
As one would expect, cloud<br />
computing raises some unique law<br />
enforcement concerns regarding the<br />
location <strong>of</strong> potential digital evidence,<br />
its preservation, and its subsequent<br />
forensic analysis. For instance, if a<br />
customer or business becomes the<br />
target <strong>of</strong> a criminal investigation,<br />
they could migrate their working<br />
environment to a cloud environment.<br />
This would provide a means for<br />
the business to continue its routine<br />
operations while the migrated<br />
environment is forensically analyzed.<br />
However, this is not without risk.<br />
The migrated data only represents a<br />
“snapshot” <strong>of</strong> when it was sent to the<br />
cloud. Since the data can be stored<br />
anywhere in the world, its dispersal<br />
could be to a location or country<br />
where privacy laws are not readily<br />
enforced or non-existent. Establishing<br />
a chain <strong>of</strong> custody for the data would<br />
CBI Bulletin April - June 201115
ecome difficult or impossible if its<br />
integrity and authenticity cannot<br />
be fully determined (where was it<br />
stored, who had access to view it,<br />
was there data leakage, commingling<br />
<strong>of</strong> data, etc.). There are also potential<br />
forensic issues when the customer or<br />
user exits a cloud application. Items<br />
subject to forensic analysis, such as<br />
registry entries, temporary files, and<br />
other artefacts (which are stored in<br />
the virtual environment) are lost,<br />
making malicious activity difficult to<br />
substantiate:<br />
“….with the huge amount <strong>of</strong> potential<br />
data flowing in and out <strong>of</strong> a cloud,<br />
how do you identify individual users<br />
<strong>of</strong> individual services provided by a<br />
transient host image, particularly when<br />
they make expert efforts to cover their<br />
tracks? And what if the owner <strong>of</strong> the<br />
image decides to engage in malicious<br />
behaviour, through the host server<br />
image, from a third IP address, and<br />
then claim someone must have stolen<br />
their password or key pair to the<br />
image”?<br />
Further forensic issues concern the<br />
potential effect the cloud services could<br />
have on the digital data itself and how<br />
the forensic examiner can explain, in<br />
a creditable manner, all these real and<br />
potential indiscretions to the court.<br />
Many forensic examiners recognize<br />
that “there is no foolpro<strong>of</strong>, universal<br />
method for extracting evidence in an<br />
admissible fashion from cloud-based<br />
applications”, and in some cases, very<br />
little evidence is available to extract.<br />
As such, cloud computing represents<br />
just one <strong>of</strong> the fast-paced technological<br />
developments that is presenting an<br />
ongoing challenge to legislators, law<br />
enforcement <strong>of</strong>ficials, and computer<br />
forensic analysts. Or stated another<br />
way, the challenge for forensic<br />
examiners and law enforcement is<br />
to determine the “who, what, when,<br />
where, how, and why” <strong>of</strong> cloud-based<br />
criminal activity.<br />
A new generation <strong>of</strong> e-discovery<br />
tools may help ease some <strong>of</strong> the pain<br />
associated with cloud forensics. And,<br />
we are likely to see the rise <strong>of</strong> a new<br />
class <strong>of</strong> pr<strong>of</strong>essionals specializing in<br />
Cloud Forensics in the years to come.<br />
REFERENCES<br />
(1) http:/www.csrc.nist.gov/<br />
(2) Cloud Security Alliance (2009). Security guidance for critical areas <strong>of</strong> focus in cloud computing V2.1.<br />
* Inspector, CBI Academy, Ghaziabad.<br />
16 CBI Bulletin April - June 2011
The Architecture <strong>of</strong> Cyber Security<br />
Col. DEBTORU CHATTERJEE*<br />
CYBER Security was born out <strong>of</strong> the<br />
need to protect message in transit<br />
between two computers (hosts) by<br />
converting the plain text message<br />
into cipher text through encryption<br />
via a device called crypto key which<br />
encrypts the message at the sender’s<br />
end, and decrypts the same message<br />
at the receiver’s end. It ensures the<br />
confidentiality <strong>of</strong> the message from<br />
peeping Toms, the authenticity <strong>of</strong> the<br />
message (message could have been<br />
written by no one other than the<br />
sender) and the integrity <strong>of</strong> the message<br />
by resistance to attempts to modify its<br />
contents. Commercial Crypto products<br />
generally are packed within or between<br />
three layers <strong>of</strong> commercial networking<br />
s<strong>of</strong>tware. The three broad networking<br />
s<strong>of</strong>twares are ; (a) Application<br />
s<strong>of</strong>tware like the World Wide Web,<br />
e-mail packages and File Transfer<br />
Protocol (FTP); the Network Protocol<br />
Stack layer comprising products and<br />
protocols like TCP/IP; and finally the<br />
bottom layer comprising peripheral<br />
devices like Ethernet or token ring.<br />
The Application s<strong>of</strong>tware which is<br />
the top most layer <strong>of</strong> the commercial<br />
networking s<strong>of</strong>tware interoperates with<br />
the Networks Protocol Stack through<br />
a cryptographic interface called the<br />
Security Socket Layer. The network<br />
s<strong>of</strong>tware which is installed into the<br />
host computer’s operating system in<br />
turn interacts with data link devices<br />
via a device driver. Typical data link<br />
devices are Broadband or Modems<br />
connected to tele lines, Asynchronous<br />
Transfer Mode (ATM) and Integrated<br />
Services Digital Network (ISDN).<br />
INTERNET TECHNOLOGY<br />
Internet Technology works on the<br />
principle <strong>of</strong> each routing host computer<br />
forwarding a data packet to the next<br />
closer network if the destination<br />
computer is not on an already directly<br />
attached network. When a host<br />
computer receives a data packet, the<br />
packet is directed at one <strong>of</strong> the host’s<br />
application (mentioned above) or else<br />
the data packet uses the host as a<br />
router and “hops” through the router<br />
on the way to its real destination. In<br />
the latter case, the Network Protocol<br />
Stack, i.e. TCP/IP s<strong>of</strong>tware redirects<br />
the data packet to the device driver<br />
(the data link mentioned as the third<br />
layer) and if the packet is destined<br />
for a local destination on the host it<br />
is passed upward to the application<br />
s<strong>of</strong>tware layer through the host’s<br />
transport s<strong>of</strong>tware.<br />
CYBER CRIMINALS<br />
The explosive growth <strong>of</strong> the internet<br />
has given rise however to four types<br />
<strong>of</strong> cyber criminals. The first is Shyam<br />
the Forger. His work is very easy if<br />
he can intercept unprotected plain<br />
text messages between two host<br />
computers. The second type <strong>of</strong><br />
criminal is Peeping Kasturi. If he has<br />
installed password sniffing s<strong>of</strong>tware<br />
into a major internet routing host or a<br />
server hosting a commercial website,<br />
that <strong>of</strong>fending s<strong>of</strong>tware can collect<br />
passwords <strong>of</strong> internet users that can<br />
give the <strong>of</strong>fender access to protected<br />
information. The third category <strong>of</strong> the<br />
cyber criminal is the Play-It-Again Tom,<br />
a criminal who intercepts messages<br />
<strong>of</strong> value and simply replays them to<br />
the recipients. For instance, he might<br />
intercept a “Pay Rs. 100/-“message<br />
from ‘X’ to ‘Y’ and replay it a few<br />
times yielding multiple unintended<br />
payments. The fourth type <strong>of</strong> criminal<br />
is Hari the Switcher who intercepts a<br />
message from ‘X’ to ‘Y’ and changes<br />
the amount from Rs. 100/- to Rs. 900/-<br />
before forwarding it to ‘Y’.<br />
To take care <strong>of</strong> these four basic<br />
types <strong>of</strong> Cyber Crimes, the following<br />
internet crypto techniques have<br />
been adopted and even codified by<br />
Law Enforcement Agencies <strong>of</strong> some<br />
Governments. The US Government,<br />
for instance, has codified their cyber<br />
communication security guidelines in<br />
a book called the Orange book. All<br />
cyber security solutions basically fall<br />
into the following broad categories:<br />
(i) Point-to-point-link encryption:<br />
This creates a fully isolated connection<br />
between two communicating<br />
computers by applying encryption to<br />
the data link. This yields the highest<br />
level <strong>of</strong> security as the host computer<br />
has no connections outside the site’s<br />
physical boundary except through<br />
an encryptor. The encryptor has two<br />
separate interfaces, one for plain text<br />
and one for cipher text. Each host<br />
computer data link is connected to<br />
the plain text port <strong>of</strong> the encryptor.<br />
Data entering through this plaintext<br />
interface is always encrypted and<br />
then sent out to the cipher text port<br />
<strong>of</strong> the encryptor which in turn is<br />
connected to the modem or bridge.<br />
CBI Bulletin April - June 201117
The safest arrangement provides that<br />
the encryptor cannot be bypassed<br />
in any manner thus ensuring that<br />
only encrypted data leaves the site.<br />
However, the encryption takes place<br />
outside the host’s computer while<br />
retaining compatibility with the existing<br />
applications.<br />
(ii) IP link encryption: This is similar to<br />
the point to point encryption except that<br />
while in link to link encryption, crypto<br />
is applied only to a pair <strong>of</strong> computers,<br />
in this case crypto techniques can be<br />
applied to a whole network <strong>of</strong> host<br />
computers who can have no access<br />
to another network except through an<br />
inline encryptor. However, the benefit<br />
<strong>of</strong> additional hosts is somewhat <strong>of</strong>fset<br />
by the ambiguity in the origination <strong>of</strong><br />
the messages due to more than one<br />
computer being linked to the same<br />
encryptor. Nonetheless, we can at least<br />
pinpoint that messages originated from<br />
people with authorized physical access<br />
to the network. At the destination site,<br />
an internet protocol router is placed<br />
between the host computer and the<br />
encryptor to guide the decrypted<br />
messages to the destination host and<br />
hence the IP routing data is decrypted<br />
by the encryptor at the destination<br />
site. The encryptor at the sender’s<br />
end encrypts all portions <strong>of</strong> the packet<br />
except the data link header <strong>of</strong> the<br />
destination site which remains in plain<br />
text. In the IP link encryption system<br />
described above it thus becomes very<br />
important to ensure that there is no<br />
back door connection to the protected<br />
network that might allow plain text<br />
unencrypted messages to leave or<br />
arrive at the network.<br />
(iii) Virtual Private Network (VPN):<br />
The Virtual Private Network uses<br />
the internet to carry traffic between<br />
trusted sites with the crypto keys being<br />
applied to the TCP/IP layer mentioned<br />
above. The stronger security version<br />
<strong>of</strong> this form <strong>of</strong> security deployment<br />
uses encrypting routers that does not<br />
provide the client site with access<br />
to unauthorized internet sites. A<br />
weaker version <strong>of</strong> VPN deployment<br />
uses encrypting firewalls instead <strong>of</strong><br />
encrypting routers. The firewalls<br />
encrypt all traffic between authorized<br />
sites but provide controlled access<br />
to unauthorized networks as well.<br />
In this technology, the IP Security<br />
Protocol (IPSEC) encrypts the data<br />
contained in each packet along with<br />
the information in the Transport and<br />
Application Headers <strong>of</strong> each packet<br />
but the address information under the<br />
Internet Header besides that under the<br />
Data Link Header has to be in plain<br />
text since IP routers deliver encrypted<br />
IPSEC messages to the destination<br />
host. IPSEC protection is applied<br />
above the internet protocol routing<br />
s<strong>of</strong>tware and below the application<br />
s<strong>of</strong>tware. IP Routers ignore the extra<br />
IPSEC headers and applications<br />
never see the IPSEC crypto services.<br />
Thus encryption takes place between<br />
the application and transport layers<br />
above it and the internet and data link<br />
layers below it. The IPSEC protocol<br />
defines two optional packet headers<br />
to ensure privacy and provide for<br />
forgery detection for each packet. A<br />
packet may contain one or both IPSEC<br />
headers, namely, the Authentication<br />
Header (AH) and the Encapsulating<br />
Security Payload (ESP). The AH<br />
contains a cryptographic checksum<br />
to authenticate the fact that the<br />
packet contents were not changed.<br />
A checksum is a computational<br />
procedure with an answer which<br />
depends upon the contents <strong>of</strong> the block<br />
<strong>of</strong> data contained in the data packet.<br />
The sender computes the checksum<br />
<strong>of</strong> the data being sent and encrypts<br />
it by using a secret key. The recipient<br />
can verify the message’s integrity by<br />
re-computing the checksum using the<br />
same secret key transmitted by the<br />
sender to the recipient by some secure<br />
means. The encrypted checksum<br />
must match the value sent with the<br />
message. Forgers cannot compute valid<br />
checksums without the secret key. The<br />
cryptographic checksum can defeat a<br />
forgery attempt by using the secret key<br />
when computing the checksum value.<br />
For instance we would use an Advance<br />
Encryption Standard Algorithm with a<br />
secret key to encrypt a message’s 64<br />
bits checksum. The receiving host<br />
would then take the result <strong>of</strong> the<br />
checksum <strong>of</strong> the received plain text<br />
data, encrypt it using the same secret<br />
key and compare the result with the<br />
encrypted checksum in the message. It<br />
should be noted that unlike encryption,<br />
this crypto technique does not hide a<br />
message content which is transmitted<br />
in plain text but will also not allow<br />
a forger to modify the text since he<br />
will not be able to reproduce exactly<br />
the same checksum with a different<br />
text message as he would not have<br />
the secret key to reproduce exactly<br />
the same value as the encrypted<br />
checksum.<br />
Under the above crypto technique,<br />
secret keying provides no protection<br />
if we get the same checksum value<br />
for two different messages. To protect<br />
against this possibility we use what<br />
are called one way hash functions.<br />
Under this scheme, the data being<br />
sent is combined with the secret key<br />
value and a check value called the<br />
hash value is computed over both.<br />
The sender then sends the message<br />
data plus the hashed value which the<br />
recipient re-computes using the same<br />
secret key to validate the hash value.<br />
There are sophisticated methods<br />
<strong>of</strong> implementation <strong>of</strong> the above<br />
procedure involving computation <strong>of</strong> a<br />
hash value for the IPSEC authentication<br />
header into which we need not enter<br />
here. The VPN can also employ a<br />
technology called proxy cryptography<br />
in which IPSEC is employed in a proxy<br />
mode so that the message traffic <strong>of</strong><br />
several hosts is all funneled through<br />
a single encrypting host (the proxy)<br />
before it traverses a potentially hostile<br />
network like the public internet.<br />
The destination site may likewise<br />
be guarded by a proxy where IPSEC<br />
18 CBI Bulletin April - June 2011
headers are validated and removed.<br />
The message is then forwarded<br />
unprotected to the destination<br />
computer. Since IPSEC crypto does<br />
not affect the routing information in<br />
an IP header, the internet can route its<br />
traffic as effectively as any unprotected<br />
traffic.<br />
How do classic internet attacks get<br />
blocked when we apply the Virtual<br />
Private Network with IPSEC security<br />
protocols? The four typical internet<br />
attacks are:<br />
(1) Password sniffing: In the case <strong>of</strong><br />
password sniffing, a typical password<br />
sniffer programme tries to collect<br />
the first 100 or so bits <strong>of</strong> information<br />
transmitted on any connection<br />
passing through the host. Thus, such<br />
programmes <strong>of</strong>ten manage to intercept<br />
the login names and password<br />
used to connect various hosts. The<br />
Encapsulating Security Payload (ESP),<br />
which encrypts the data contents <strong>of</strong><br />
the rest <strong>of</strong> the data packet apart from<br />
the authentication header, can protect<br />
against this disclosure <strong>of</strong> passwords<br />
while it is travelling across untrusted<br />
networks.<br />
(2) IP Spo<strong>of</strong>ing: Another form <strong>of</strong> attack<br />
against which the IPSEC protocol<br />
guarantees security is IP spo<strong>of</strong>ing<br />
in which the attacker’s messages or<br />
websites come from a masquerading<br />
host aping a genuine one. The pretence<br />
does not work because the attacking<br />
host would not have the necessary<br />
shared secret key to generate the<br />
correct keyed value that the receiving<br />
host computer would first seek to<br />
validate before going into session with<br />
the sender host.<br />
(3) Internet Hijacking: Similarly<br />
internet protocol hijacking is not<br />
possible when using IPSEC encrypting<br />
router to guard the Virtual Private<br />
Network. In IP hijacking an active and<br />
authenticated connection between two<br />
computer hosts is disrupted and the<br />
attacker jumps into seat <strong>of</strong> the one <strong>of</strong><br />
the hosts and continues to masquerade<br />
as the host who was cut <strong>of</strong>f from the<br />
connection. An IPSEC encrypting<br />
router guarding our host computer,<br />
which is thus being attempted to be<br />
fooled, would, however, immediately<br />
unmask the imposter host computer<br />
since it would receive data packets<br />
without the valid hash value contained<br />
in the authentication header <strong>of</strong> each<br />
data packet as valid packets can<br />
only come from a host that has the<br />
necessary secret key to generate the<br />
correct hash value.<br />
(4) SYN Flooding: A final internet<br />
threat to an internet host computer<br />
is from SYN flooding, which was first<br />
demonstrated against a large Internet<br />
Service Providers (ISP) way back in<br />
1996. The web server <strong>of</strong> the Internet<br />
Service Provider had to be shut<br />
down as attackers sent a TCP “SYN<br />
message”, requesting for a internet<br />
connection, but never responded<br />
with the final message necessary to<br />
establish the connection fully. TCP<br />
s<strong>of</strong>tware normally leaves such semi<br />
open connections around for a few<br />
minutes, hoping that the connection<br />
would be completed soon; meanwhile<br />
the attackers send additional SYN<br />
messages with varying, forged host<br />
computer addresses, each appearing<br />
to request its own connection. This<br />
uses up the available connections<br />
faster than the host can recover<br />
them. With all incoming connections<br />
thus exhausted, the internet service<br />
provider host is forced to refuse<br />
connection requests from legitimate<br />
users. IPSEC however, blocks this kind<br />
<strong>of</strong> attack since each TCP SYN message<br />
must have a legitimate AH with a<br />
valid cryptographic checksum which<br />
attackers cannot create from random<br />
hosts as they cannot produce legitimate<br />
AH from different random hosts with<br />
different secret keys acceptable to the<br />
targeted web server or client.<br />
Even if an SYN attack was mounted<br />
by replaying authentic SYN messages<br />
intercepted during a normal operation,<br />
this could be invalidated by a site<br />
that periodically rekeyed (adopted a<br />
new secret key value) for its security<br />
parameter index associations.<br />
(iv) World Wide Web service with<br />
Secure Socket Layer (SSL protocol):<br />
This applies crypto services using the<br />
SSL protocol. The protocol is integrated<br />
into the application s<strong>of</strong>tware packages<br />
for web clients and servers and protects<br />
data transfer between the two. When<br />
two hosts first start communicating<br />
with SSL, the initial message consists <strong>of</strong><br />
a special handshake protocol, which<br />
establishes the crypto algorithm and<br />
the keys to be used. The SSL is designed<br />
to work between one host behaving as<br />
a client and the other behaving as a<br />
server. The SSL protocol consists <strong>of</strong> a<br />
record protocol, which indicates the<br />
encryption and integrity protection<br />
being applied to the data and a<br />
handshake protocol that negotiates the<br />
use <strong>of</strong> new crypto algorithm and keys<br />
between the communicating client<br />
and server. In the basic handshake<br />
protocol one <strong>of</strong> the two hosts, say the<br />
server sends his other communicating<br />
host, the client, the former’s “Public<br />
key” embedded in a signed certificate<br />
issued by a certifying authority. The<br />
client now generates a secret key<br />
using some technology like a Pseudo<br />
Random Generator Number, uses the<br />
server’s “Public key” to encrypt this<br />
secret key and sends this encrypted<br />
secret key back to the server in what<br />
is called a “Client key exchange<br />
message”. The server now replies by<br />
sending a finished message, which<br />
amounts to acknowledging that the<br />
secret key duly encrypted has been<br />
received by the server. The server<br />
extracts the secret key by decrypting the<br />
encrypted secret using what is called<br />
the server’s “Private key”. In Public<br />
Key Encryption (PKE) terminology, an<br />
entity shares his public key, which is<br />
an enciphering or deciphering value<br />
with his correspondents, while he<br />
retains a corresponding private key<br />
CBI Bulletin April - June 201119
as his own well-guarded secret. A<br />
message encrypted with the public<br />
key can only be decrypted at the other<br />
end by its corresponding private key<br />
and similarly, a message encrypted at<br />
one end with a private key can only<br />
be decrypted at the other end using<br />
the corresponding public key. The<br />
Diffie-Hellman and the Rivest-Shamir-<br />
Adelman (RSA), particularly the latter<br />
are the two leading algorithms used to<br />
generate such public-private key pairs<br />
for implementing this technology. This<br />
asymmetric key generation technology<br />
has gained wide currency over the<br />
secret key technology (which is also<br />
called the symmetric key technology).<br />
The reason is that for the secret key<br />
technology the number <strong>of</strong> shared<br />
secret keys required to be generated<br />
between each pair <strong>of</strong> communicating<br />
computers rise exponentially as more<br />
and more computers are added to<br />
an ever-expanding internet. In the<br />
PKE system, however, every holder<br />
<strong>of</strong> private key needs to only share<br />
his single public key with all other<br />
communicating hosts as the public key<br />
is not required to be kept as a secret.<br />
This drastically reduces the number<br />
<strong>of</strong> the keys required for encryption<br />
and decryption and is the bedrock on<br />
which sensitive as well as commercially<br />
valuable information like account<br />
numbers would be transmitted over<br />
the internet.<br />
The public key-private key pair having<br />
thus been used to transmit the secret<br />
key between the client and the server,<br />
the data transmitted between the two<br />
would now be encrypted and hashed<br />
with the secret key value and the<br />
recipient would treat it as a fatal error<br />
if a message arrived with an invalid<br />
hash. The secret key can also be used<br />
to encrypt the plaintext <strong>of</strong> an email<br />
message generated by an email client<br />
since most web browsers like the<br />
Micros<strong>of</strong>t Explorer incorporate SSL as<br />
a feature.<br />
The public key infrastructure cannot<br />
function without every public key<br />
holding entity being certified to be<br />
the authentic holder <strong>of</strong> the public key,<br />
which he claims to be his own. Such a<br />
public key certificate thus contains a<br />
name along with his entitled public key<br />
duly certified by a certifying authority,<br />
through the latter’s digital signature.<br />
This is a hash value encrypted with the<br />
certifying authority’s private key. The<br />
hash value is computed over the name<br />
<strong>of</strong> the public key holder and his public<br />
key value.<br />
The digital signature <strong>of</strong> the certifying<br />
authority is decrypted using the<br />
certifying authority’s public key<br />
yielding the hash value, which must<br />
match with the hash value computed<br />
over the name and public key value <strong>of</strong><br />
the certificate. This, in turn, requires<br />
that the certifying authority’s public<br />
keys be shared with all those users,<br />
who would like to authenticate the<br />
public key values <strong>of</strong> those who seek to<br />
correspond with them.<br />
The value <strong>of</strong> public key certificates<br />
stems from the fact that an imposter<br />
cannot pose as the genuine holder<br />
<strong>of</strong> public key that actually belongs to<br />
someone else and thus stage manin-the-middle<br />
attacks between two<br />
communicating computers. For, if<br />
the one <strong>of</strong> the two hosts claims to be<br />
legitimate holder <strong>of</strong> a certain public<br />
key, this could be checked against the<br />
name entered in the digital certificate.<br />
NATIONAL SECURITY<br />
While message security and indeed<br />
the whole story <strong>of</strong> Cyber Security thus<br />
turns on the encryption algorithm<br />
and crypto devices available, it must<br />
be remembered that most <strong>of</strong> these<br />
crypto devices vended by foreign firms<br />
are required to observe limitations<br />
in the encryption devices, such as<br />
the key length for example, without<br />
compliance with which export licence<br />
would not be available to them from<br />
their respective Governments. The US<br />
Government, for instance, requires an<br />
upper limit <strong>of</strong> 40 bits <strong>of</strong> secret key value<br />
to be adhered to although the length<br />
<strong>of</strong> its own secret keys for encrypting<br />
its own <strong>of</strong>ficial cyber text messages<br />
is 128 bits. These limitations have<br />
been adopted to enable such foreign<br />
Governments to eves drop on the<br />
encrypted traffic <strong>of</strong> the buyers <strong>of</strong> cyber<br />
crypto products <strong>of</strong> these countries.<br />
India thus needs to focus its energies on<br />
developing its own in-house hardware<br />
and s<strong>of</strong>tware crypto devices to protect<br />
its <strong>of</strong>ficial and un<strong>of</strong>ficial cyber traffic<br />
from unauthorized interception. It is a<br />
question <strong>of</strong> National Security.<br />
*The author is a 1994 batch Indian Postal Service Officer, currently a Director, Army Postal Service. He has also served<br />
earlier as Assistant Director, Intelligence <strong>Bureau</strong>.<br />
20 CBI Bulletin April - June 2011
Hon’ble Prime Minister Dr. Manmohan Singh, inaugurating the new CBI Headquarters on 30th April, 2011<br />
Dr Mammohan Singh, Hon’ble Prime Minister, inaugurating the new CBI Headquarter. Shri V. Narayansamy, MoS (PP) and<br />
Shri Amar Pratap Singh, Director, CBI are also present<br />
CBI Bulletin April - June 201121
Shri Amar Pratap Singh, Director, CBI, welcoming Shri P. Chidambaram,<br />
Union Home Minister on the occasion <strong>of</strong> inauguration <strong>of</strong> the new CBI Headquarters<br />
Shri Amar Pratap Singh, Director, CBI, welcoming Shri M. Veerappa Moily, Union Minister (Law & Justice)<br />
22 CBI Bulletin April - June 2011
Hon’ble Prime Minsiter Dr Manmohan Singh, visits the CBI Gallery at CBI Headquarters on 30th April 2011. Accompanying him are<br />
Shri V. Narayanasamy, MoS (PP), Shri Amar Pratap Singh, Director, CBI & others<br />
Hon’ble Prime Minister Dr. Manmohan Singh looks at Milestones in the growth <strong>of</strong> CBI over the decades<br />
CBI Bulletin April - June 201123
Dr. Manmohan Singh, Hon'ble Prime Minister <strong>of</strong> India at the CBI Gallery along with Shri Amar Pratap Singh, Director,<br />
CBI and Shri V.K. Gupta, Additional Director, CBI<br />
Raja Vijay Karan, former Director CBI with Shri Amar Pratap Singh, Director, CBI<br />
24 CBI Bulletin April - June 2011
A view <strong>of</strong> the CBI Gallery at the new CBI Headquarters, New Delhi<br />
CBI Bulletin April - June 201125
26 CBI Bulletin April - June 2011<br />
A view <strong>of</strong> CBI Gallery at the new CBI Headquarters, New Delhi
Hon’ble Prime Minister Dr. Manmohan Singh, addressing the gathering at the new CBI Headquarters on 30th April, 2011<br />
Shri Amar Pratap Singh, Director, CBI addressing at the Inaugural Ceremony<br />
CBI Bulletin April - June 201127
Shri Amar Pratap Singh, Director CBI, presenting the memento to the Hon’ble Prime Minister Dr. Manmohan Singh. Shri P.<br />
Chidambaram, Union Home Minister and Dr. Veerappa Moily, Union Minister <strong>of</strong> Law and Justice are also present.<br />
Ladies at the Inaugural Ceremony<br />
28 CBI Bulletin April - June 2011
Hon’ble Prime Minister Dr. Manmohan Singh, recording his views in the Visitor’s Book at CBI Lounge on 30th April, 2011<br />
Hon’ble Prime Minister Dr. Manmohan Singh, Shri V. Narayanasamy, MoS (PP), Smt. Alka Sirohi, Secretary (P&Tl), Shri T.K.A. Nair,<br />
Principal Secretary to PM, Shri Amar Pratap Singh, Director, CBI and Shri V.K. Gupta, Additional Director, CBI, along with the recipients<br />
<strong>of</strong> the President’s Police Medal for Distinguished Service<br />
CBI Bulletin April - June 201129
Shri. T.K.A. Nair, Principal Secretary to PM at the CBI Gallery along with Shri Amar Pratap Singh, Director, CBI and Shri V.K. Gupta,<br />
Additional Director, CBI<br />
The Hon’ble Prime Minister meeting Joint Directors <strong>of</strong> CBI<br />
30 CBI Bulletin April - June 2011
Hon’ble Prime Minister Dr. Manmohan Singh, giving the President's Police Medal for Distinguished Services to Shri A.K. Pateria, Joint<br />
Director (Policy), CBI on 30th April, 2011<br />
Hon’ble Prime Minister Dr. Manmohan Singh, giving the President's Police Medal for Distinguished Services to Shri O.P. Galhotra,<br />
Joint Director (EO), CBI on 30th April, 2011<br />
CBI Bulletin April - June 201131
Mr. Louis Freeh, former Director, FBI, USA at CBI HQ New Delhi on 18th May, 2011 along with Dr. R.K. Raghavan, former Director,<br />
CBI, Shri Amar Pratap Singh, Director, CBI, Shri Balwinder Singh, Special Director CBI and Shri V.K. Gupta, Additional Director, CBI<br />
Sub-Inspector (Cadets) <strong>of</strong> 14th batch <strong>of</strong> CBI taking Oath during the Investiture Ceremony at the CBI Academy,<br />
Ghaziabad on 7th May, 2011<br />
32 CBI Bulletin April - June 2011
Shri Amar Pratap Singh, Director, CBI and other senior <strong>of</strong>ficers during the Investiture Ceremony<br />
Shri Amar Pratap Singh, Director, CBI, giving away the Certificate for ‘All Round Best’ to Shri Homi Garg, SI (Cadet) during the<br />
Investiture Ceremony<br />
CBI Bulletin April - June 201133
Director, CBI, interacting with the passing out Sub-Inspectors after their Investiture Ceremony<br />
Shri Amar Pratap Singh, Director, CBI at the foundation stone laying ceremony <strong>of</strong> the 2nd Phase Construction <strong>of</strong> CBI Academy at<br />
Ghaziabad on 7th May 2011<br />
34 CBI Bulletin April - June 2011
Shri R. K. Tandon, Joint Director, CBI, welcoming Shri Amar Pratap Singh, Director, CBI, on the occasion <strong>of</strong> the foundation stone laying<br />
ceremony <strong>of</strong> the 2nd phase construction <strong>of</strong> the Academy<br />
Shri Amar Pratap Singh, Director, CBI, interacting with the CBI <strong>of</strong>ficials and their family members during his visit to CBI Colony at Vasant<br />
Vihar, New Delhi on 21st May, 2011<br />
CBI Bulletin April - June 201135
Shri Amar Pratap Singh, Director, CBI, Shri Balwinder Singh, Special Director, CBI, Shri V.K. Gupta, Additional Director, CBI<br />
and other senior <strong>of</strong>ficers <strong>of</strong> CBI, with the Sub-Inspector (Cadets) <strong>of</strong> 14th batch at CBI Academy.<br />
Shri Amar Pratap Singh, Director, CBI, inaugurating the new CBI Canteen at CBI Headquarters, New Delhi on 6th June, 2011<br />
36 CBI Bulletin April - June 2011
Shri Amar Pratap Singh, Director, CBI, giving memento to the retiring <strong>of</strong>ficials <strong>of</strong> CBI on 30th April, 2011<br />
CBI Bulletin April - June 201137
Shri Amar Pratap Singh, Director, CBI, welcoming Lord Ian Blair, Former Commissioner <strong>of</strong> Metropolitan Police, London at the 12th D.P.<br />
Kohli Memorial Lecture on 3rd June, 2011 at Vigyan Bhawan, New Delhi<br />
Shri Amar Pratap Singh, Director, CBI, presenting memento to Shri V. Narayanasamy, MoS (PP), on the occasion <strong>of</strong> 12th D.P. Kohli<br />
Memorial Lecture on 3rd June, 2011 at Vigyan Bhawan, New Delhi<br />
38 CBI Bulletin April - June 2011
Lord Ian Blair, Former Commissioner <strong>of</strong> Metropolitan Police (Scotland Yard), London delivering the 12th D.P. Kohli Memorial Lecture on<br />
3rd June, 2011 at Vigyan Bhawan, New Delhi<br />
Invitees and delegates on the occasion <strong>of</strong> 12th D.P. Kohli Memorial Lecture on 3rd June, 2011 at Vigyan Bhawan, New Delhi<br />
CBI Bulletin April - June 201139
Union Minister <strong>of</strong> State for Personnel & Public Grievances Shri V. Narayanasamy giving the Award <strong>of</strong> 'Best Detective Constable' <strong>of</strong> CBI<br />
for the year 2010 to Shri Sarbjit Singh, Constable, CBI, SPE, Port Blair, A&N Island<br />
Recipients <strong>of</strong> the President's Police Medal for Distinguished Services and Indian Police Medal for Meritorious Services with Shri V.<br />
Narayanasamy, MoS (PP), Smt. Alka Sirohi, Secretary (P&T), Shri Amar Pratap Singh, Director, CBI, Shri Balwinder Singh, Special<br />
Director, CBI and Shri V.K. Gupta, Additional Director, CBI<br />
40 CBI Bulletin April - June 2011
Advancement <strong>of</strong> Techniques for Forensic<br />
Examination <strong>of</strong> CDs/DVDs<br />
MUKESH SHARMA* & SHAILENDRA JHA**<br />
Forensic Science is multi-disciplinary subject applied for examining crime scenes and gathering evidence to be used<br />
in prosecution <strong>of</strong> <strong>of</strong>fenders in the Court <strong>of</strong> Law. Through this paper, the authors have explained the importance <strong>of</strong> the<br />
forensic experts in the examination <strong>of</strong> piracy <strong>of</strong> multimedia devices like CD/DVD and duplication <strong>of</strong> the data in the<br />
licensed s<strong>of</strong>tware available in CD/DVD. In this paper, the process <strong>of</strong> examination, which is available in literature, expert<br />
analysis and presentation <strong>of</strong> forensic data to relevant security agencies or authorities or Courts <strong>of</strong> Law, on computer<br />
and digital assets (CD/DVD/CD-ROM/hard drive) has been reported. First time a standard procedure for examination <strong>of</strong><br />
compact disc devices for the forensic experts has also been reported.<br />
Keywords: Forensic Technology, Cyber Forensic, CD-DVD Examination.<br />
INTRODUCTION<br />
BY definition, technology is dynamic,<br />
and in many ways, technology<br />
dictates advances in forensic science.<br />
For forensic pr<strong>of</strong>essionals, with<br />
expertise and technological knowhow<br />
in the application <strong>of</strong> analytical<br />
and investigative techniques for<br />
conducting liturgical and non-liturgical<br />
investigations, examinations, analysis,<br />
interpretation, evidence preservation<br />
<strong>of</strong> electronic data, presentation <strong>of</strong><br />
comprehensive reports on specific<br />
activities. 1<br />
Our forensics services includes systems,<br />
to extract relevant files <strong>of</strong> computing<br />
and digital activities that require<br />
investigations, examinations, analysis,<br />
risk preventions and mitigation,<br />
as well as fraud control measures.<br />
Computer crime, fraud, disaster and<br />
risk programming to compromise<br />
business processes, have become<br />
very pervasive on the internet, web,<br />
computer system, network servers,<br />
single-user PC (laptops, desktops, etc)<br />
and digital devices (mobile phones,<br />
PDA, printer, fax machines, I-pods,<br />
etc.), and as forensic specialists.<br />
encoded media or physical storage<br />
(files, notepads, documentations,<br />
peripherals, visual outputs, electronic<br />
storage media like CD and DVD,<br />
etc.) and to help in the detection and<br />
mitigation <strong>of</strong> risk protection, defence<br />
<strong>of</strong> corporate assets and reputation,<br />
recovering <strong>of</strong> files/data/information<br />
from intentionally damaged media.<br />
2-3<br />
Through this paper, the authors<br />
have tried to develop a standard<br />
methodology, in examination <strong>of</strong><br />
CD and DVD, which is the biggest<br />
problems from Indian point <strong>of</strong> view,<br />
as the pirated/duplicity <strong>of</strong> the Original<br />
s<strong>of</strong>tware/Video Film in CD or DVD<br />
format/Audio CD/MP3/Audio and<br />
Video DVD. In Figure1, the historical<br />
development <strong>of</strong> the Compact Disc and<br />
DVD is shown, which provide the idea<br />
about the development <strong>of</strong> the audio/<br />
video/Photo in terms <strong>of</strong> their format<br />
in computer based technology. 4 The<br />
difference at a glance in the DVD and<br />
The investigation, identification,<br />
extraction, examination, analyses,<br />
documentation and preservation<br />
<strong>of</strong> computing and digital evidence,<br />
in a admissible, electronically<br />
Figure 1: The history <strong>of</strong> development <strong>of</strong> the Optical CD/DVD [Ref. (3)].<br />
CBI Bulletin April - June 201141
CD has not been observed but when<br />
one examined these devices under<br />
specific microscope, one can easily<br />
differentiate on the basis <strong>of</strong> track pitch<br />
and pit length, as shown in Figure 2.<br />
disc, the following areas are illustrated<br />
in Figure 3<br />
The CD standard has specific<br />
measurements for all <strong>of</strong> these areas;<br />
approximately 99 percent <strong>of</strong> CDs<br />
(manufactured or recordable) meet<br />
these standards. DVD measurements<br />
are similar to those for CDs and are<br />
considered identical.<br />
FIGURE. 2: The microscopically view <strong>of</strong> the<br />
CD and DVD [Ref. (4).<br />
The basic physical and specification<br />
based differences have also been<br />
summarized in Table 1, as ready<br />
reference for reader.<br />
TABLE 1: Physical difference in CD<br />
and DVD<br />
Properties<br />
CD-ROM/<br />
CD-RAM<br />
D V D -<br />
ROM<br />
Thickness 1.2 mm 1.2 mm<br />
Diameter 12 cm 12 cm<br />
Pit length<br />
(Min)<br />
(Max)<br />
Track<br />
Pitch<br />
Data<br />
Capacity<br />
0.83<br />
micrometer<br />
(cm)<br />
0.4<br />
micrometer<br />
(cm)<br />
3.04 cm 1.87 cm<br />
1.6 cm 0.74 cm<br />
0.68 GB 4.7 GB<br />
METHODOLOGY<br />
(i) Physical examination:<br />
There are a number <strong>of</strong> distinct areas on<br />
the surface <strong>of</strong> a CD or DVD. Moving<br />
from the inside to the outside <strong>of</strong> the<br />
Figure 3: CD/DVD physical construction is<br />
shown:<br />
1. Spindle hole;<br />
2. Clamping ring;<br />
3. Stacking ring;<br />
4. Mirror band;<br />
5. Beginning <strong>of</strong> data area;<br />
6. End <strong>of</strong> data area, slightly inside the<br />
outer edge <strong>of</strong> the disc.<br />
TABLE 2: Some dyes with their visible characteristics<br />
Name <strong>of</strong> the Dye Colour Colour under<br />
gold reflector<br />
The stacking ring is used to keep the<br />
surfaces <strong>of</strong> discs separate when stacked<br />
on a spindle. Without the stacking ring,<br />
the lacquer surface <strong>of</strong> one disc would<br />
adhere to the polycarbonate surface <strong>of</strong><br />
the one above it. This is especially true<br />
in high-humidity environments. The<br />
stacking ring and proper alignment<br />
<strong>of</strong> stacked discs is important for<br />
transporting discs.<br />
The original development <strong>of</strong> CD-R<br />
discs required a bi-stable dye that<br />
could be changed from transparent to<br />
opaque by a laser. The term “organic”<br />
in this case refers to the use <strong>of</strong> chains<br />
<strong>of</strong> carbon and hydrogen atoms in<br />
the dye.5 In Table 2, the summary<br />
<strong>of</strong> the types <strong>of</strong> dyes and their visible<br />
characteristics observed as CD-R.<br />
Colour under silver<br />
reflector<br />
Cyanine Blue Green Green/Blue<br />
Phthalocyanine Transparent Gold Silver<br />
Formazan Light Green Green/Gold Not available<br />
Azo (Ay-Zo) Dark Blue Dark Green Deep Blue<br />
CDs and DVDs consist <strong>of</strong> the same<br />
basic materials and layers, but are<br />
manufactured differently. A DVD<br />
is actually like two thin CDs glued<br />
together. A CD is read from and<br />
written to (by laser) on one side only;<br />
a DVD can be read from or written<br />
to on one or both sides, depending<br />
on how the disc was manufactured.<br />
Recordable DVDs (DVD-R, DVD-<br />
RW, DVD-RAM) can be manufactured<br />
with one re-cording layer on each<br />
side. Prerecorded DVDs (DVD-ROM)<br />
can be manufactured with one or two<br />
recorded layers on each side.<br />
The polycarbonate substrate makes<br />
up most <strong>of</strong> the disc, including the area<br />
that is read by the laser (opposite the<br />
label side on CDs). It is present on<br />
both sides <strong>of</strong> a DVD, even a “singlesided”<br />
disc with a label on one side.<br />
This substrate provides the disc depth<br />
necessary to maintain laser focus on<br />
the metal and data layers. Accordingly,<br />
42 CBI Bulletin April - June 2011
fin¬gerprints, smudges, or scratches,<br />
as well as such substances as dirt,<br />
dust, solvents, and excessive moisture<br />
(which polycarbonate will absorb), can<br />
interfere with the ability <strong>of</strong> the laser to<br />
read the data.6 Contact <strong>of</strong> any foreign<br />
material with the polycarbonate<br />
substrate layer should be avoided.<br />
As its name implies, the data layer<br />
<strong>of</strong> CDs and DVDs is the layer that<br />
contains the data. The data appear as<br />
marks or pits that either absorb light<br />
from the laser beam, or transmit the<br />
light back to the laser pho¬to-sensor<br />
by way <strong>of</strong> the metal reflective layer.<br />
In CDs, the data and metal layers are<br />
very close to the top <strong>of</strong> the disc (label<br />
side); in DVDs, they are in the middle<br />
<strong>of</strong> the disc. The types <strong>of</strong> data and<br />
metal layers used depend on the type<br />
<strong>of</strong> disc-read-only (ROM), write-once<br />
(R), or rewritable (RW, RAM).7 Table<br />
3, shows the relation¬ship between<br />
the data and metal layers and the disc<br />
type and basic layers.<br />
(ii) Digital Data examination<br />
with specification and<br />
characteristic:<br />
When the comparison in the terms <strong>of</strong><br />
the digital data and format is discuss for<br />
a forensic point <strong>of</strong> view, DVD-Video<br />
can be summarized as high-quality<br />
pictures, high quality sound, and<br />
multiple playback functions, which<br />
are made possible by its large storage<br />
capacity and digital signal processing.<br />
TABLE 3: Relation between layers <strong>of</strong> CD-ROM, CD-RW, DVD-ROM and<br />
DVD-RW<br />
Layer CD-ROM CD-RW DVD-ROM (with<br />
two recorded<br />
layer)<br />
1. Label,<br />
Optional<br />
Label,<br />
Optional<br />
Label, Optional<br />
(hub area only)<br />
DVD-RW<br />
Label,<br />
Optional (hub<br />
area only)<br />
2. Lacquer Lacquer Polycarbonate Polycarbonate<br />
3. Metal Al (also<br />
Si, Au, or Ag)<br />
Metal (Al) Metal (fully<br />
reflective) Al (also<br />
Centre<br />
Adhesives<br />
Si, Au, or Ag)<br />
4. Polycarbonate Recording/<br />
Writing layer<br />
Centre Adhesives Metal (Al)<br />
5. - Polycarbonate Metal (Semireflective)<br />
Recording/<br />
Writing layer<br />
6. - - Polycarbonate Polycarbonate<br />
Date Molded<br />
Moulded<br />
Layer<br />
Phase<br />
changing<br />
metal alloys<br />
films<br />
In terms <strong>of</strong> picture quality, high-quality<br />
images have been realized with<br />
500TV-line resolution, better than<br />
either laserdisc or CD-Video. The most<br />
remarkable feature <strong>of</strong> DVD-Video is<br />
that it <strong>of</strong>fers both the highest picture<br />
quality <strong>of</strong> home video media and the<br />
capability to record an entire movie,<br />
which requires a long recording time,<br />
all available on a single disc the same<br />
size as a CD. A simple comparison<br />
between the audio and video format<br />
<strong>of</strong> CD and DVD are summarized in<br />
Table 4 (a) and (b).<br />
Phase<br />
changing<br />
metal alloys<br />
films<br />
For forensic purposes, from Table 1<br />
to Table 4 (a-b), one can easily trace<br />
out the format and specification <strong>of</strong> the<br />
CD/DVD, which is to be used or being<br />
used for piracy violation purposes. It<br />
is generally assumed in forensic that<br />
if Apple extensions are not present, a<br />
Macintosh user programmes did not<br />
create the disc. An exception to this is<br />
some OS X programmes that operate<br />
at the “native” BSD level. In any<br />
event, these would not be considered<br />
ordinary Macintosh user programmes.<br />
TABLE 4 (a): Audio Format specifications <strong>of</strong> CD and DVD<br />
SL. No. Specification CD DVD<br />
1. Audio Stereo MPEG Dolby Digital Linear PCM<br />
8 Streams max.<br />
2. Audio System MPEG1 layer 2 MPEG Dolby Digital Dolby Digital<br />
3. Audio bit rate 224 kbps (fixed) max. 912 kbps max. 448 kbps (per stream) max. 6.144 Mbps<br />
(per stream)<br />
4. Number <strong>of</strong> 2 ch only max 7.1 ch. /stream max 5.1 ch. /stream max 8 ch. /stream<br />
channels<br />
CBI Bulletin April - June 201143
TABLE 4 (b): Video Format specifications <strong>of</strong> CD and DVD<br />
SL. No. Specification CD DVD<br />
1. Video compression system MPEG 1 MPEG 2<br />
2. Resolution (in pixels) in the case <strong>of</strong> PAL, DVD-Video is<br />
not compatible with the high definition system.<br />
352 x 286 pixels 720 x 576 pixels<br />
3. Video Bit rate 1.15 Mbps (fixed) 9.8 Mbps, max.(variable)<br />
4. Compression Ratio 1/140 1/40<br />
5. Horizontal resolution Aapprox. 250 TV<br />
lines (same as VHS)<br />
Approx. 500 TV lines<br />
For forensic examiners, it must be<br />
clarified that while files can be deleted<br />
on write-once media, the actual<br />
file is not deleted; it just drops from<br />
the directory structure. Given the<br />
potentially fragmented nature <strong>of</strong> files,<br />
it is not a simple matter to use a datacarving<br />
tool for these purposes.<br />
(iii) S<strong>of</strong>tware based<br />
examination:<br />
There are several alternatives for<br />
collecting evidence from CDs and<br />
DVDs. Unfortunately, most forensic<br />
s<strong>of</strong>tware does a poor job, either<br />
because it is based strictly on Micros<strong>of</strong>t<br />
Windows capabilities and Micros<strong>of</strong>t<br />
Windows file system implementations,<br />
or because it has limited support for<br />
CD and DVD file systems.<br />
The Access Data Forensic Tool Kit (FTK)<br />
product has an imaging component<br />
(derived from the shareware<br />
ISOBuster product) that does a good<br />
job <strong>of</strong> collecting data from CDs and<br />
DVDs with any <strong>of</strong> the commonly<br />
supported file systems.8, but useful<br />
for the examination <strong>of</strong> pirated files<br />
examination.<br />
some capabilities beyond EnCase in<br />
its native form, but does not support<br />
all CD and DVD file systems correctly,<br />
nor can it deal with UDF discs that<br />
have logical errors.<br />
In general, they only support ISO<br />
9660 and various extensions, such as<br />
Joliet. InfinaDyne’s CD/DVD Inspector<br />
can be used with both EnCase and<br />
FTK to collect evidence from CDs and<br />
DVDs. Statistics <strong>of</strong> last five years case,<br />
which are registered under Piracy<br />
and Duplication Act in the Physics<br />
Division, SFSL (Rajasthan), is plotted<br />
in Figure 4.<br />
From Figure 4, it is clearly seen that<br />
the piracy and duplication <strong>of</strong> the<br />
s<strong>of</strong>twares, Audio/Video CD/DVD<br />
is increasing year by year, so the<br />
forensic experts have to be aware <strong>of</strong><br />
the developing technology in the CD/<br />
DVD and computer technology.<br />
DISCUSSIONS<br />
Digital forensic evidence like CD/DVD<br />
are usually latent, in that it can only be<br />
seen by the Trier <strong>of</strong> fact at the desired<br />
level <strong>of</strong> detail through the use <strong>of</strong> tools<br />
on these exhibits. In order for tools to<br />
be properly applied to a legal standard,<br />
it is normally required that the forensic<br />
expert, who use these tools properly,<br />
apply their scientific knowledge, skill,<br />
experience, training, and/or education<br />
to use a methodology that is reliable<br />
to within defined standards, to show<br />
FIGURE 4: Curve plotted year from 2003 - 2008 versus number <strong>of</strong> cases registered<br />
in Physics Division, SFSL, Jaipur related to computer-based crime<br />
The Guidance S<strong>of</strong>tware EnCase<br />
product9 has minimal support for<br />
CDs and DVDs, but can utilize the<br />
InfinaDyne CD/DVD Inspector<br />
product to process discs that it does<br />
not directly support for Indian point<br />
<strong>of</strong> view.<br />
The ‘I Look Investigator product’ has<br />
44 CBI Bulletin April - June 2011
the history, pedigree, and reliability <strong>of</strong><br />
the tools. Three goals can be extracted<br />
from this are that –<br />
(i)one can prepare himself to examine<br />
CD/DVD, also ensure the integrity <strong>of</strong><br />
the field <strong>of</strong> computer forensics;<br />
(ii)by pursuing an understanding <strong>of</strong><br />
traditional techniques, one can more<br />
effectively apply this techniques<br />
proposed in this paper; and<br />
(iii) overall, one must provide a<br />
thoughtful analysis based on the<br />
Scientific Method and Scientific<br />
Instruments. Non-experts can<br />
introduce and make statement about<br />
evidence to the extent that they can<br />
clarify non-scientific issues by stating<br />
what they observed. This paper is a call<br />
for standardization and certification<br />
for the computer forensics field <strong>of</strong> CD/<br />
DVD examinations.<br />
However, Figure 4 statistics, at a<br />
national level is important in order<br />
to assess the impact that this type <strong>of</strong><br />
crime has on society. Governments<br />
and the police community rely on<br />
this information to help them enforce<br />
policies and procedures as well as<br />
allocating resources to investigate and<br />
prevent the incidence <strong>of</strong> piracy and<br />
duplication activities in India.<br />
Acknowledgement<br />
The authors are very much thankful<br />
to the Director, State Forensic Science<br />
Laboratory for providing the research<br />
environment in the Lab. Dr. Sharma<br />
is also very grateful to Pr<strong>of</strong>. Terrence<br />
O’Connor (Pr<strong>of</strong>. Perdue University,<br />
USA) and D.W. Clemens (Editor-in-<br />
Chief for Crime & Clue Magazine)<br />
for their fruitful discussions. Partial<br />
work <strong>of</strong> this article has been accepted<br />
for presentation at International<br />
Symposium on Recent Trends in<br />
Forensic Sciences, During 22nd – 24th<br />
February, 2010 Panjabi University,<br />
Patiala, Punjab.<br />
References<br />
(1) Kerr, Orin, Computer Crime and the Coming Revolution in Criminal Procedure, Yale Law School, 2004.<br />
(2) Mack, Mary, Electronic Discovery v. Computer Forensics, New Jersey Law Journal, 20th October, 2003.<br />
(3) http://www.cybercrime.gov.<br />
This site contains a list <strong>of</strong> current and past select cases by the US DOJ on computer crimes. It is important to note the<br />
amount <strong>of</strong> cases where the indicted person pled guilty.<br />
(4) A Hardware Based Memory Acquisition Procedure for Digital <strong>Investigation</strong>s — Carrier and Grand, Digital <strong>Investigation</strong><br />
Journal, Feb 2004, Elsevier Science, UK.<br />
(5) The Computer Forensics Tool Testing (CFT). Nist, collection <strong>of</strong> papers, http://www.cftt.nist.gov/.<br />
(6) http://www.cd-info.com/CDIC/Technology/CD-R/Labeling/<br />
(7) Cochrane, Katherine (1998). Recordable CD and DVD for Archiving.<br />
Microscopy Today No. 98 - 10 ; also Imation, 2002. Handle with Care: Making Your CD-R & CD-RW Media Last.<br />
http://www.imation.com/assets/en_US_Assets/PDF/IMN_CDcare.pdf.<br />
(8) Access Data Forensic Tool Kit (FTK) www.accessdata.com<br />
(9) Guidance S<strong>of</strong>tware (EnCase) http://www.encase.com<br />
* The author is SSO, In-charge, Mobile Forensic Science Unit, Pratapgarh.<br />
** The author is Assistant Director, Physics Division, State Forensic Science Laboratory, Jaipur.<br />
CBI Bulletin April - June 201145
New Building <strong>of</strong> CBI Head Office<br />
THE journey from Special Staff (SS) to<br />
Special Police Section (SPS) to Special<br />
Police Establishment (SPE) to Delhi<br />
Special Police Establishment (DSPE)<br />
to the <strong>Central</strong> <strong>Bureau</strong> <strong>of</strong> <strong>Investigation</strong><br />
(CBI) is very long. The Special Staff<br />
had, to begin with, 12 <strong>of</strong>ficers and<br />
24 other ranks on its rolls in 1941,<br />
posted at Delhi, Lahore, Ferozpur,<br />
Rawalpindi, Karachi and Quetta, with<br />
Headquarters at 69, The Mall, Lahore<br />
(now in Pakistan).<br />
In view <strong>of</strong> the fast-changing political<br />
scenario around, the headquarters<br />
<strong>of</strong> the DSPE were also shifted from<br />
Lahore to New Delhi, where the<br />
building <strong>of</strong> CBI Head Office also kept<br />
changing from one place to another.<br />
R.K. Puram, Sardar Patel Bhawan,<br />
CGO Complex are a few names <strong>of</strong><br />
such places.<br />
With the increase in the strength <strong>of</strong><br />
<strong>of</strong>ficers and other ranks <strong>of</strong> CBI rose to<br />
over 6500, in New Delhi alone, CBI<br />
had to accommodate them at various<br />
places. Apart from two blocks in<br />
CGO Complex, Lok Nayak Bhawan,<br />
Dalhousie Hutments, North Block,<br />
Yashwant Place are such names. So,<br />
there was a need <strong>of</strong> a building <strong>of</strong> its<br />
own for smooth functioning and close<br />
supervision under one ro<strong>of</strong>.<br />
Therefore, a proposal was moved by<br />
CBI to the Government and pursued<br />
very seriously and ultimately a piece <strong>of</strong><br />
land measuring 7025.8 sq.m., situated<br />
at 5-B, CGO Complex, Lodhi Road,<br />
New Delhi was purchased from the<br />
Ministry <strong>of</strong> Urban Development at a<br />
total cost <strong>of</strong> Rs. 3.12 crore in March<br />
2002 and possession <strong>of</strong> the said land<br />
was taken on 16th September, 2002.<br />
A proposal for construction <strong>of</strong> <strong>of</strong>fice<br />
complex at a total cost <strong>of</strong> Rs. 137.72<br />
crore through CPWD was approved by<br />
the Government on 15th December,<br />
2005 in order to keep all the CBI<br />
Delhi based branches under one ro<strong>of</strong><br />
for better coordination.<br />
The Foundation Stone was laid by the<br />
Hon’ble Prime Minister Dr. Manmohan<br />
Singh on 18th January, 2006.<br />
Government sanction for construction<br />
<strong>of</strong> CBI Office Complex through NBCC<br />
instead <strong>of</strong> CPWD was received on 6th<br />
November, 2006 at the estimated cost<br />
<strong>of</strong> Rs. 137.72 crore, which was revised<br />
to Rs. 181.79 crore due to revision<br />
<strong>of</strong> DPAR 2007 and approved by the<br />
Government in addition to the cost<br />
<strong>of</strong> Rs. 4,30,92,832/- towards Green<br />
Building Norms. Total cost comes to<br />
Rs. 186.10 crore.<br />
Memorandum <strong>of</strong> Understanding<br />
(MoU) was signed on 13th April, 2007<br />
between CBI & NBCC to complete the<br />
building within 30 months, i.e. October<br />
2010, which was extended up to 31st<br />
March, 2011 by the Government<br />
based on the recommendations <strong>of</strong> the<br />
Project Monitoring Team (PMT) headed<br />
by Joint Director (Administration)/CBI<br />
and reasons given by the NBCC.<br />
Ground breaking Ceremony was<br />
done by the then Hon’ble MoS (PP)<br />
Shri Suresh Pachouri on 10th March,<br />
2008.<br />
Hon’ble Prime Minister Dr.<br />
Manmohan Singh inaugurated the<br />
new CBI Headquarters building at<br />
5-B, CGO Complex, Lodhi Road, New<br />
Delhi. Union Home Minister Shri P.<br />
Chidambaram, Union Law Minister<br />
Shri M. Veerappa Moily, Union<br />
Minister for HRD & Telecom Shri Kapil<br />
Sibal & Union Minister <strong>of</strong> State for<br />
Personnel Shri V. Narayanasamy also<br />
graced the occasion.<br />
Hon’ble Prime Minister unveiled a<br />
Stone at the entrance to the building<br />
and inaugurated the premises by<br />
cutting a ribbon at the reception<br />
lobby.<br />
Hon’ble Prime Minister addressed<br />
the CBI family, former Directors CBI<br />
& Senior Government <strong>of</strong>ficials on<br />
the 11th floor <strong>of</strong> the new building.<br />
Hon’ble Dr. Manmohan Singh hoped<br />
that the new building will provide CBI<br />
<strong>of</strong>ficers a congenial and comfortable<br />
habitat to work in.<br />
Addressing the gathering Minister <strong>of</strong><br />
State for Personnel Shri V. Narayansamy<br />
said that it is the endeavour <strong>of</strong> the<br />
Government to provide all necessary<br />
infrastructure to CBI to meet its<br />
pr<strong>of</strong>essional challenges. The new<br />
CBI building is one step taken by the<br />
Department <strong>of</strong> Personnel to provide<br />
better working conditions for CBI<br />
personnel.<br />
Shri V. Narayanasamy further said<br />
that proposals for construction <strong>of</strong><br />
residential-cum-<strong>of</strong>fice complexes for<br />
CBI at Guwahati, Imphal, Pune &<br />
Lucknow have either been approved or<br />
are at advanced stage <strong>of</strong> finalization.<br />
Director, CBI Shri Amar Pratap<br />
Singh in his address called that this a<br />
momentous occasion as CBI finally<br />
got a home <strong>of</strong> its own after 70 years.<br />
The Director said that the building<br />
combines aesthetics with conducive<br />
work environment. He hoped that with<br />
46 CBI Bulletin April - June 2011
all CBI <strong>of</strong>fices now in a single location,<br />
daily functioning will be smoothened<br />
and output increased.<br />
The new CBI Headquarters is housed<br />
in an imposing eleven storey building<br />
made <strong>of</strong> energy-efficient toughened<br />
glass and steel, and brings together all<br />
CBI's Delhi-based Branches under one<br />
ro<strong>of</strong>. This building, constructed by the<br />
NBCC has a distinctive architectural<br />
style and is designed to suit the<br />
functional requirements and workflow<br />
pattern <strong>of</strong> CBI.<br />
It aims at promoting functional<br />
efficiency and teamwork, with every<br />
branch being allocated a separate<br />
floor and having 'open <strong>of</strong>fices' fitted<br />
with smart modular workstations<br />
in a manner, which maximizes<br />
natural light in the building. Modern<br />
communication systems, advanced<br />
systems for maintaining records, fitted<br />
storage space and computerized<br />
access control are available, along with<br />
provision <strong>of</strong> add-on facility for new<br />
technology. Interrogation rooms, lockups,<br />
dormitories and Conference Halls<br />
are also provided at various floors.<br />
Hon’ble Prime Minister Dr. Manmohan Singh, inaugurating the new CBI Headquarters<br />
Building at 5-B, CGO Complex, Lodhi Road, New Delhi on 30th April, 2011<br />
The new CBI Headquarters <strong>of</strong>fers to<br />
its staff a large cafeteria, which can<br />
accommodate 500 persons, separate<br />
gyms for men and women, a terrace<br />
garden and a double level basement<br />
parking for about 470 vehicles. An<br />
advanced fire-fighting system, as well<br />
as power back-up is provided. There<br />
is a well-designed Press Briefing<br />
Room and Media Lounge. A Gallery<br />
showcasing the history and landmark<br />
achievements <strong>of</strong> the CBI is also part<br />
<strong>of</strong> the building. In short, the new<br />
building stands proud in the heart <strong>of</strong><br />
the National Capital.<br />
The front look <strong>of</strong> the new CBI Headquarters Building<br />
CBI Bulletin April - June 201147
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In Home News<br />
CBI filed charge-sheet against<br />
nine accused persons and<br />
three private companies<br />
relating to issuance <strong>of</strong> UAS<br />
Licences & 2G Spectrum<br />
CBI filed a charge-sheet against nine<br />
accused persons and three private<br />
companies in the Court <strong>of</strong> Special Judge<br />
for CBI Cases, Patiala House Courts, New<br />
Delhi relating to the issuance <strong>of</strong> new<br />
Unified Access Services Licences and<br />
subsequent allocation <strong>of</strong> 2G Spectrum.<br />
The investigation relating to the issuance<br />
<strong>of</strong> new Unified Access Services Licences<br />
and subsequent allocation <strong>of</strong> 2G Spectrum<br />
during 2008-2009, established commission<br />
<strong>of</strong> <strong>of</strong>fences punishable u/s 120-B, 420, 468,<br />
471 <strong>of</strong> IPC & Section 13(2) r/w 13(1)(d) <strong>of</strong><br />
the Prevention <strong>of</strong> Corruption Act, 1988<br />
and substantive <strong>of</strong>fences there<strong>of</strong> against the<br />
then Telecom Minister; the then Secretary<br />
(Telecom); the then Private Secretary to<br />
the then Telecom Minister; two Directors<br />
<strong>of</strong> Mumbai-based private company, who<br />
were also Promoters <strong>of</strong> a Mumbai-based<br />
private company; Managing Director <strong>of</strong><br />
a Gurgaon-based Real Estate Company,<br />
and Group Managing Director & two<br />
Senior Vice Presidents <strong>of</strong> a Mumbai-based<br />
Telecom Company. Two Mumbai-based<br />
private telecom companies and one<br />
Gurgaon (Haryana)-based private telecom<br />
company also named in the charge-sheet.<br />
CBI registered a case against<br />
seven <strong>of</strong>ficials <strong>of</strong> DDA &<br />
CPWD and a private firm<br />
relating to laying <strong>of</strong> Synthetic<br />
Outdoor Flat Lawn Bowl<br />
Greens for CWG - 2010<br />
CBI registered a case against seven <strong>of</strong>ficials<br />
<strong>of</strong> DDA & CPWD and one Delhi-based<br />
private firm on the allegations <strong>of</strong> conspiracy,<br />
cheating and misuse <strong>of</strong> <strong>of</strong>ficial position by<br />
the accused to cause undue benefit to the<br />
private firm. The firm provided and laid<br />
Synthetic Outdoor Flat Lawn Bowl Greens<br />
for Commonwealth Games - 2010 at<br />
New Delhi in which the accused <strong>of</strong>ficials<br />
<strong>of</strong> CPWD and DDA allegedly inflated the<br />
cost <strong>of</strong> the contract from the estimate <strong>of</strong><br />
Rs. 6 crore (approx.) to Rs. 9.88 crore<br />
(approx.) by including allegedly false<br />
amounts against its cost, transportation, etc.<br />
Searches conducted at 20 places in Delhi<br />
& Noida, at the <strong>of</strong>fices and residential<br />
premises <strong>of</strong> the accused <strong>of</strong>ficials <strong>of</strong><br />
CPWD & DDA as well as the firm and<br />
its Directors, resulted in the recovery<br />
<strong>of</strong> many incriminating documents.<br />
CBI arrests an Inspector<br />
<strong>of</strong> CISF for accepting a<br />
bribe <strong>of</strong> Rs. one lakh<br />
CBI arrested an Inspector <strong>of</strong> <strong>Central</strong><br />
Industrial Security Force (CISF) posted<br />
at 4th Battalion, Naradpura, Jaipur for<br />
demanding and accepting a bribe <strong>of</strong><br />
Rs. one lakh from the complainants.<br />
The accused, an Inspector <strong>of</strong> CISF allegedly<br />
demanded a bribe <strong>of</strong> Rs. 50,000/- each<br />
from four Constables <strong>of</strong> CISF, Naradpura,<br />
Jaipur to relieve them from their duties<br />
from CISF after resignation. On negotiation,<br />
the demand was reduced to Rs. 25,000/-<br />
from each <strong>of</strong> the Constables. A complaint<br />
was lodged with CBI, Jaipur. The CBI<br />
registered a case against the Inspector and<br />
laid a trap. The accused was caught redhanded<br />
while demanding and accepting a<br />
bribe <strong>of</strong> Rs. one lakh from the Constables.<br />
Searches were also conducted at his present<br />
residence at Jaipur; permanent residence<br />
in District Mau (U.P.) and also at his <strong>of</strong>fice<br />
premises at CISF, Naradpura, Jaipur.<br />
CBI arrested an Income<br />
Tax Officer for demanding<br />
& accepting a bribe<br />
<strong>of</strong> Rs. one lakh<br />
CBI arrested an Income Tax Officer posted<br />
in Ward-1, Warangal (Andhra Pradesh)<br />
for demanding and accepting a bribe<br />
<strong>of</strong> Rs. one lakh from the complainant.<br />
A case was registered u/s 7 <strong>of</strong> P.C. Act,<br />
1988 against the Income Tax Officer,<br />
Ward-1, Warangal on the basis <strong>of</strong> written<br />
complaint lodged by the complainant, a<br />
Civil Surgeon, on the allegation that the<br />
accused demanded an illegal gratification<br />
<strong>of</strong> Rs.1,00,000/- from the complainant for<br />
doing favour in the matter <strong>of</strong> assessment<br />
<strong>of</strong> income tax. A trap was laid and the<br />
accused was caught red-handed while<br />
demanding and accepting a bribe <strong>of</strong><br />
Rs. 1,00,000/- from the complainant.<br />
Searches were conducted at five different<br />
places, which led to recovery <strong>of</strong> expenditure<br />
receipts for establishment <strong>of</strong> a hotel at<br />
Araku Valley in Visakhapatnam in the name<br />
<strong>of</strong> his wife and an amount <strong>of</strong> Rs. 80,000/-.<br />
The accused was produced before the<br />
Special Judge for CBI Cases, Hyderabad<br />
and remanded to Judicial custody.<br />
CBI arrested an Inspector <strong>of</strong><br />
<strong>Central</strong> <strong>Bureau</strong> <strong>of</strong> Narcotics<br />
and a private person in a<br />
bribery case <strong>of</strong> Rs. three lakh<br />
CBI registered a case u/s 120-B <strong>of</strong> IPC r/w<br />
Section 7, 8 and 10 <strong>of</strong> the Prevention <strong>of</strong><br />
Corruption Act, 1988 on the basis <strong>of</strong> written<br />
complaint against an Inspector <strong>of</strong> <strong>Central</strong><br />
<strong>Bureau</strong> <strong>of</strong> Narcotics, Garoth, District<br />
Mandsore and a private person R/o Village<br />
Shyam Garh, Mandsore. It was alleged that<br />
they had demanded a bribe <strong>of</strong> Rs. 10 lakh<br />
from the complainant as a motive for not<br />
implicating the complainant in NDPS case<br />
<strong>of</strong> <strong>Central</strong> <strong>Bureau</strong> <strong>of</strong> Narcotics and removing<br />
his name from the case. After negotiations,<br />
the amount was first reduced to Rs. 8 lakh<br />
and it then further reduced to Rs. 7 lakh.<br />
CBI laid a trap and the private person was<br />
caught red-handed while demanding and<br />
accepting a bribe <strong>of</strong> Rs. 3 lakh from the<br />
complainant on behalf <strong>of</strong> Inspector, <strong>Central</strong><br />
<strong>Bureau</strong> <strong>of</strong> Narcotics, Garoth, District<br />
Mandsore. The Inspector was also arrested.<br />
Searches were conducted at the <strong>of</strong>ficial<br />
as well as residential premises <strong>of</strong> the<br />
accused persons. From the residential<br />
premises <strong>of</strong> accused, an <strong>of</strong>ficial <strong>of</strong><br />
<strong>Central</strong> <strong>Bureau</strong> <strong>of</strong> Narcotics, NDPS<br />
substances have been recovered.<br />
CBI Bulletin April - June 201149
Both the arrested accused were<br />
produced before the Special Judge for<br />
CBI Cases, Indore and were remanded<br />
to Police custody for five days.<br />
CBI registered three cases<br />
against a local Recruiting<br />
Agent; Officers <strong>of</strong> Protector<br />
<strong>of</strong> Emigrants and others<br />
relating to illegal human<br />
trafficking <strong>of</strong> Indian workers<br />
CBI registered three cases against a local<br />
Recruiting Agent (Delhi-based); three<br />
private firms; the then certain <strong>of</strong>ficers<br />
<strong>of</strong> Protector <strong>of</strong> Emigrants and other<br />
private persons with regard to illegal<br />
human trafficking <strong>of</strong> Indian workers.<br />
The allegations against local Recruiting Agent<br />
(Delhi-based) are that he and other Agents<br />
in connivance with <strong>of</strong>ficials <strong>of</strong> Protector<br />
<strong>of</strong> Emigrants based at Delhi, Mumbai and<br />
Chandigarh were obtaining emigration<br />
clearance in respect <strong>of</strong> unskilled workers<br />
on the basis <strong>of</strong> false and forged documents.<br />
Searches were conducted at 38 residential/<br />
<strong>of</strong>ficial premises <strong>of</strong> local Recruiting<br />
Agent (Delhi-based), public servants<br />
and other private persons at Delhi,<br />
Mumbai, Chandigarh and Hyderabad<br />
in the three different cases registered in<br />
respect <strong>of</strong> this human trafficking racket.<br />
Several incriminating documents/material<br />
were recovered during the searches.<br />
CBI arrested the then<br />
Chairman <strong>of</strong> Organizing<br />
Committee <strong>of</strong> CWG - 2010<br />
in ongoing investigation<br />
<strong>of</strong> a CWG case<br />
CBI arrested the then Chairman <strong>of</strong><br />
Organizing Committee <strong>of</strong> Commonwealth<br />
Games - 2010 for conspiracy to cause favour<br />
to a private firm based in Switzerland in<br />
awarding the contract for Timing, Scoring<br />
& Result System at an inflated cost <strong>of</strong> Rs.<br />
141 crore. In this connection, the then<br />
Secretary-General and the then Director-<br />
General <strong>of</strong> the Organizing Committee<br />
were also arrested on 23-2-2011.<br />
It was alleged that <strong>of</strong>ficials <strong>of</strong> the<br />
Organizing Committee had conspired<br />
with representatives <strong>of</strong> the private firm in<br />
Switzerland and the contract for Timing,<br />
Scoring, Result was awarded by wrongfully<br />
restricting and eliminating competition<br />
from other suppliers in pre-meditated and<br />
planned manner. <strong>Investigation</strong> revealed<br />
that the Committee for shortlisting<br />
prospective bidders for TSR was constituted<br />
by selecting handpicked <strong>of</strong>ficials.<br />
<strong>Investigation</strong> also revealed that members<br />
<strong>of</strong> the tenders evaluation committee were<br />
coerced and threatened to disqualify other<br />
bidders. <strong>Investigation</strong> further revealed<br />
that Indian representatives <strong>of</strong> the favour<br />
supplier were in regular contact with 3<br />
arrested Organizing Committee <strong>of</strong>ficials<br />
much before the award <strong>of</strong> tender.<br />
Wrongful loss <strong>of</strong> approximately Rs. 95<br />
crore was caused to the Public Exchequer.<br />
CBI filed supplementary<br />
Charge-sheet against<br />
eight accused persons<br />
relating to Issuance <strong>of</strong> UAS<br />
Licences & 2G Spectrum<br />
CBI filed a supplementary charge-sheet<br />
against eight accused persons u/s 120-B<br />
IPC read with Section 7/11 & 12 <strong>of</strong> P.C. Act,<br />
1988 in the Court <strong>of</strong> Special Judge for CBI<br />
Cases, Patiala House Courts, New Delhi.<br />
The investigation relating to the issuance<br />
<strong>of</strong> new Unified Access Services Licences<br />
and subsequent allocation <strong>of</strong> 2G Spectrum<br />
during 2008-2009 established commission<br />
<strong>of</strong> <strong>of</strong>fences punishable u/s 120-B IPC<br />
read with Section 7/11 & 12 <strong>of</strong> P.C. Act,<br />
1988 against the then Union Telecom<br />
Minister; two Directors <strong>of</strong> Mumbaibased<br />
private company who were also<br />
promoters <strong>of</strong> a Mumbai-based private<br />
Telecom company, two Directors <strong>of</strong><br />
another Mumbai-based private company;<br />
one Director <strong>of</strong> Mumbai-based private<br />
film company and one Director and one<br />
partner <strong>of</strong> Chennai-based private TV<br />
company are liable to be prosecuted.<br />
CBI registered a case in<br />
connection with alleged<br />
murder <strong>of</strong> Tulsi Prajapati<br />
In pursuance to the Orders <strong>of</strong> the Hon’ble<br />
Supreme Court <strong>of</strong> India dated 8-4-<br />
2011 on the Writ Petition filed by Smt.<br />
Narmada Bai, mother <strong>of</strong> the deceased<br />
Tulsi Prajapati, CBI registered a case<br />
against certain Police <strong>of</strong>ficials <strong>of</strong> Gujarat<br />
& Rajasthan and others for their alleged<br />
involvement in the criminal conspiracy <strong>of</strong><br />
wrongful restraint, wrongful confinement,<br />
abduction and murder <strong>of</strong> Tulsi Prajapati<br />
and causing disappearance <strong>of</strong> evidence<br />
in the matter there<strong>of</strong>. The investigation <strong>of</strong><br />
the case was entrusted to the S.I.T., which<br />
had earlier performed the investigation<br />
<strong>of</strong> Sohrabuddin Fake Encounter Case.<br />
Purulia Arms Dropping Case:<br />
Evidence against Kim Davy<br />
During the investigation by CBI in<br />
the Purulia Arms Dropping Case, no<br />
evidence whatsoever came to light that<br />
any Government agency helped Neils<br />
Holck @Kim Davy in his crime by way<br />
<strong>of</strong> commission or omission. On the<br />
contrary, intelligence agencies helped<br />
the CBI in a big way to collect evidence<br />
against him and his co-accused persons.<br />
No evidence <strong>of</strong> any Indian politician<br />
helping him in his escape came to light.<br />
During the investigation, a Laptop belonging<br />
to the accused was seized by CBI, containing<br />
more than 50,000 pages, wherein Kim<br />
Davy has given elaborate details about his<br />
plan and preparation <strong>of</strong> the crime. This is<br />
clinching evidence against him. Nowhere<br />
has he mentioned anything about any<br />
likely help from any Indian <strong>of</strong>ficial agency.<br />
CBI is making all effort to bring him to<br />
India and face trial in the Competent<br />
Court in India. Kim Davy will have all<br />
the opportunity to put forth his version in<br />
open court. CBI has been able to establish<br />
in the court in India that crime committed<br />
by Kim Davy and other accused amount<br />
to an act <strong>of</strong> terrorism. CBI has also been<br />
able to establish the same to the Danish<br />
Government. Kim Davy is attempting<br />
to portray this heinous crime as an act<br />
<strong>of</strong> self-defence to avoid his extradition.<br />
Red Corner Notice against Kim Davy was<br />
issued in 1996. With the help <strong>of</strong> Interpol,<br />
India traced him in Copenhagen. Sincere<br />
efforts have been made by CBI to extradite<br />
him, but as there is no Extradition Treaty<br />
between India and Denmark, the process<br />
has taken time. Due to persistent efforts<br />
by CBI and MEA, the Government <strong>of</strong><br />
Denmark has been convinced about<br />
his role in <strong>of</strong>fences committed in India<br />
and had agreed to extradite him. The<br />
matter is now in the Danish High Court.<br />
50 CBI Bulletin April - June 2011
The Purulia Arms Dropping Case was<br />
registered by CBI on 28th December, 1995.<br />
CBI arrested the Chief<br />
Parliamentary Secretary,<br />
Punjab and an <strong>of</strong>ficial <strong>of</strong><br />
Registrar, Firms & Societies,<br />
Punjab in a bribery<br />
case <strong>of</strong> Rs.1.5 crore<br />
CBI arrested Chief Parliamentary Secretary,<br />
Punjab and an <strong>of</strong>ficial <strong>of</strong> Registrar, Firms<br />
& Societies, Punjab in a bribery case.<br />
CBI registered a case u/s 8 <strong>of</strong> Prevention<br />
<strong>of</strong> Corruption Act against an <strong>of</strong>ficial <strong>of</strong><br />
Registrar, Firms & Societies, Punjab on<br />
the basis <strong>of</strong> a complaint received from<br />
Secretary <strong>of</strong> an Association alleging demand<br />
<strong>of</strong> bribe <strong>of</strong> Rs. 1.5 crore by the <strong>of</strong>ficial, <strong>of</strong><br />
Registrar, Firms & Societies, Punjab, Sector<br />
17, Chandigarh for closing the complaint<br />
against the Association without any action.<br />
The accused also threatened that in case <strong>of</strong><br />
non-payment <strong>of</strong> the bribe amount, control<br />
<strong>of</strong> the Association shall be taken over by<br />
the Government and a criminal case will<br />
be registered against the <strong>of</strong>fice-bearers <strong>of</strong><br />
the Association. The accused <strong>of</strong>ficial also<br />
allegedly told the complainant that he has<br />
approached a Minister in Punjab Cabinet<br />
through Chief Parliamentary Secretary for<br />
closing the complaint. He said that initially<br />
an amount <strong>of</strong> Rs. 2 crore was demanded<br />
for settling this matter but, however, he has<br />
been able to reduce it to Rs. 1.5 crore. The<br />
accused <strong>of</strong>ficial also allegedly told that the<br />
bribe amount was to be delivered at the<br />
residence <strong>of</strong> Chief Parliamentary Secretary.<br />
A trap was laid at the residence <strong>of</strong> the<br />
Chief Parliamentary Secretary, Punjab.<br />
The accused <strong>of</strong>ficial <strong>of</strong> Registrar, Firms<br />
& Societies and the Chief Parliamentary<br />
Secretary, Punjab have been arrested<br />
and produced before the Special<br />
Judge for CBI Cases, Chandigarh.<br />
CBI registered a case<br />
in connection with<br />
Merchandising and Online<br />
Retails Concessionaire<br />
for CWG Games-2010<br />
CBI registered a case against six Senior<br />
Officers <strong>of</strong> Organizing Committee, CWG<br />
- 2010 and two private companies for<br />
extending undue favour to a private<br />
company appointed as <strong>of</strong>ficial Master<br />
Licensee for Merchandising and On<br />
- line & Retail Concessionaire for<br />
Commonwealth Games - 2010 against a<br />
minimum royalty amount <strong>of</strong> Rs. 7.05 crore.<br />
It is alleged that the then Director-General,<br />
the then JDG (Finance), the then DDG<br />
(Legal), the then DDG (Procurement), the<br />
then ADG (F&A) & the then ADG (Image<br />
& Look), all <strong>of</strong> Organizing Committee<br />
(OC) CWG - 2010 entered into a<br />
criminal conspiracy with the Director <strong>of</strong><br />
a private company and Chairman <strong>of</strong> a<br />
private company and others. The said<br />
OC Officers, by abusing their <strong>of</strong>ficial<br />
positions, extended undue favour to<br />
the private company in appointing it as<br />
<strong>of</strong>ficial Master Licensee for Merchandising<br />
and On-line & Retail Concessionaire<br />
for CWG - 2010 for sportswear, casual<br />
wear, kids wears etc. against a minimum<br />
royalty amount <strong>of</strong> Rs. 7.05 crore.<br />
It is further alleged that after scrapping<br />
<strong>of</strong> the earlier bid on flimsy grounds, the<br />
Evaluation Committee <strong>of</strong> the OC CWG -<br />
2010, dishonestly considered the private<br />
company on the basis <strong>of</strong> the goodwill <strong>of</strong> its<br />
parent company, and on negotiations, the<br />
said private company submitted an <strong>of</strong>fer <strong>of</strong><br />
Rs. 5.20 crore for acquiring all the rights<br />
<strong>of</strong> Master Licensee for Merchandising.<br />
Thereafter, the private company submitted<br />
two cheques amounting to Rs. 3.525 crore,<br />
but the same were dishonoured by the<br />
bank and as such, the OC did not receive<br />
any amount from the private company.<br />
Thus, it is alleged that the accused private<br />
company actually used the CWG brand<br />
properties and earned a huge pr<strong>of</strong>it, but<br />
did not pay anything to the OC, and the<br />
accused public servants caused huge<br />
pecuniary advantage to Director <strong>of</strong> the<br />
private company and corresponding<br />
wrongful loss to the Government Exchequer.<br />
Searches in this case were conducted<br />
at 10 places in Delhi, Gurgaon,<br />
Panchkula, Chandigarh & Mumbai.<br />
CBI arrested a PS <strong>of</strong> a Minister<br />
in Punjab Government<br />
CBI arrested a Private Secretary to the Minister<br />
<strong>of</strong> Technical Education, Social Security,<br />
Women & Child, Government <strong>of</strong> Punjab in<br />
the ongoing investigation <strong>of</strong> a bribery case.<br />
The arrested accused was produced before<br />
the Special Judge for CBI Cases, Chandigarh<br />
and remanded to one-day Police custody.<br />
The CBI had earlier registered a case under<br />
Section 8 <strong>of</strong> P.C. Act against the <strong>of</strong>ficial<br />
<strong>of</strong> Registrar (Firms & Societies), Punjab,<br />
Sector 17, Chandigarh for demanding a<br />
bribe <strong>of</strong> Rs. 1.5 crore from the complainant<br />
for showing a favour. A trap was laid.<br />
The accused <strong>of</strong>ficial <strong>of</strong> Registrar (Firms &<br />
Societies), Punjab, Sector-17, Chandigarh<br />
and the Chief Parliamentary Secretary,<br />
Punjab were earlier arrested in this case.<br />
CBI registered a case against<br />
DIG, ITBP and others for<br />
allegedly obtaining bribes<br />
CBI registered a case against the then<br />
DIG, ITBP, Dehradun presently posted<br />
as DIG (Administration) at NICFS, Delhi;<br />
Deputy Commandant, ITBP, 3rd Battalion,<br />
Bareily; Assistant Commandant, ITBP,<br />
SHQ, Bareily and Head Constable (PSO<br />
to the then DIG), ITBP Dehradun u/s<br />
120-B, 468, 471 IPC and 13(2) r/w<br />
13(1)(d) <strong>of</strong> P.C. Act, 1988 for allegedly<br />
obtaining bribes from candidates for their<br />
selection as Constables/Head Constables.<br />
It was alleged that they being the members<br />
<strong>of</strong> a Selection Committee to select 84<br />
numbers <strong>of</strong> Constables/Head Constables<br />
through Departmental Selection process<br />
had obtained illegal gratification from<br />
the candidates for favouring them in<br />
the Selection process. In the process,<br />
the then DIG, ITBP, Dehradun was the<br />
Chairman <strong>of</strong> the Selection Committee.<br />
Searches were conducted at the <strong>of</strong>ficials<br />
& residential premises <strong>of</strong> the accused<br />
persons at Delhi, Dehradun, Bareilly<br />
and Chandigarh, which yielded a<br />
recovery <strong>of</strong> incriminating documents.<br />
Clarification regarding<br />
investigation relating to<br />
Adarsh Cooperative Housing<br />
Society Case, Mumbai<br />
In connection with the investigation<br />
relating to the Adarsh Cooperative<br />
Housing Society, Mumbai, the Union<br />
Ministry <strong>of</strong> Environment & Forests (MoEF)<br />
and other <strong>Central</strong> and State Government<br />
Departments are cooperating on all issues,<br />
and, restructuring documents/files, which<br />
may not be readily available with them.<br />
CBI Bulletin April - June 201151
CBI had registered a case on 29-1-2011<br />
against 13 accused belonging to Army,<br />
DEO (Defence Estate Office), Government<br />
<strong>of</strong> Maharashtra, public servants and<br />
unknown persons in connection with the<br />
Adarsh Housing Society investigation.<br />
Another case relating to a missing file<br />
was also registered, wherein the notesheet<br />
<strong>of</strong> the file belonging to the Urban<br />
Development Department <strong>of</strong> Government<br />
<strong>of</strong> Maharashtra was found missing. In this<br />
case, arrests were also made to trace the<br />
documents and identify the culprit, who<br />
had removed the note-sheet from the file.<br />
The case was registered on the direction<br />
<strong>of</strong> Hon’ble High Court <strong>of</strong> Bombay.<br />
CBI arrested 8 dummy<br />
candidates for appearing<br />
in All India Pre-<br />
Medical Test - 2011<br />
CBI registered a case against some <strong>of</strong> the<br />
medical courses aspiring candidates for<br />
securing admission in Medical Colleges in<br />
India through All India Pre-Medical Test -<br />
2011 with the help <strong>of</strong> dummy candidates.<br />
In this regard, raids were conducted<br />
at CBSE, AIPMT Kolkata Examination<br />
Centres to apprehend those candidates,<br />
who had appeared as dummy candidates<br />
on behalf <strong>of</strong> such aspiring candidates.<br />
As outcome <strong>of</strong> the said raid, 8 dummy<br />
candidates, including facilitators were<br />
arrested. It has also been found that<br />
the arrested dummy candidates are the<br />
students <strong>of</strong> different medical colleges<br />
and had appeared for the candidates in<br />
lieu <strong>of</strong> huge money already paid to them.<br />
Most Wanted Persons’<br />
List handed over to<br />
Pakistan during HSlevel<br />
INDO-PAK talk<br />
With reference to Most Wanted Persons’<br />
List which was handed to Pakistan during<br />
HS level INDO-PAK talk, after the first<br />
error was found out on 17-5-2011, a<br />
review <strong>of</strong> the Interpol List was undertaken.<br />
This review and Preliminary Enquiry<br />
revealed lapse regarding inclusion <strong>of</strong> Firoz<br />
Abdul Rashid Khan in the list <strong>of</strong> Most<br />
Wanted Persons handed over to Pakistan<br />
during the HS-level INDO-PAK talk. The<br />
information regarding the arrest <strong>of</strong> Abdul<br />
Rashid Khan was intimated to the Interpol<br />
Wing <strong>of</strong> CBI in February 2010. The lapse<br />
occurred on the part <strong>of</strong> an <strong>of</strong>ficial, who<br />
failed to request Interpol Lyon for the<br />
cancellation <strong>of</strong> Red Corner Notice and to<br />
update the records <strong>of</strong> Interpol Wing, CBI.<br />
Taking swift action against the concerned<br />
<strong>of</strong>ficial and immediate Supervisory Officer<br />
responsible for the lapse, an Inspector<br />
has been suspended and two other<br />
Supervisory Officers <strong>of</strong> the rank <strong>of</strong> SP<br />
and DSP have been transferred pending a<br />
detailed enquiry. The Interpol Wing <strong>of</strong> CBI<br />
is carrying out a thorough review <strong>of</strong> the<br />
remaining persons on the Most Wanted<br />
List. Director, CBI ordered a complete<br />
review <strong>of</strong> the working <strong>of</strong> the Interpol Wing<br />
by an <strong>of</strong>ficer <strong>of</strong> the rank <strong>of</strong> Joint Director.<br />
Media reports regarding<br />
Arrest Warrant for Kim<br />
Davy: Clarification<br />
The Non-Bailable Warrant issued by the<br />
Metropolitan Magistrate, Kolkata was duly<br />
sent to the Danish authorities along with<br />
request for extradition <strong>of</strong> Niels Holck @<br />
Kim Davy to India. On the basis <strong>of</strong> relevant<br />
case records and the warrant issued by<br />
Kolkata Court, the Ministry <strong>of</strong> Justice,<br />
Government <strong>of</strong> Denmark passed an order<br />
<strong>of</strong> extradition <strong>of</strong> Niels Holck @Kim Davy.<br />
On the basis <strong>of</strong> the warrant issued by the<br />
Kolkata Court and subsequent extradition<br />
order issued by the Ministry <strong>of</strong> Justice,<br />
Denmark Niels Holck @Kim Davy was<br />
duly arrested on 9-4-2010 and kept in<br />
custody for one day. As per Danish Law, he<br />
was produced before a court, which passed<br />
an order that though in Judicial custody, he<br />
can stay with his family on condition <strong>of</strong> his<br />
reporting to police twice a week. Thus, in<br />
Indian terms, he was released by the court<br />
on conditional bail. Accordingly, Niels<br />
Holck @Kim Davy has been reporting to<br />
local police twice a week and attending<br />
court during hearings. His further arrest<br />
can only take place by an order <strong>of</strong> Danish<br />
Court hearing his extradition matter.<br />
After the Trial Court did not confirm its order<br />
<strong>of</strong> extradition <strong>of</strong> Niels Holck @Kim Davy to<br />
India the Ministry <strong>of</strong> Justice, Denmark filed<br />
an appeal before the Danish High Court.<br />
The High Court also maintained the bail<br />
condition and accordingly Niels Holck @<br />
Kim Davy is reporting to police twice a week.<br />
Thus, for all practical purpose, the warrant<br />
issued by Kolkata Court has been executed<br />
by the Danish Police on request <strong>of</strong> CBI. At<br />
present, status <strong>of</strong> Kim Davy is that <strong>of</strong> an<br />
accused person arrested and released on<br />
conditional bail by the court in Denmark.<br />
Moreover, as per Section 70(2) <strong>of</strong> Cr.P.C.,<br />
a warrant issued by a competent court<br />
remains in force till it is executed or it is<br />
cancelled by the same court. There is<br />
no question <strong>of</strong> a warrant getting expired<br />
as reported in a section <strong>of</strong> media.<br />
However, during the hearing <strong>of</strong> the appeal<br />
in Danish High Court, the Advocate for the<br />
accused Niels Holck @Kim Davy made<br />
a submission that the warrant against<br />
his client was old one. The Prosecutor,<br />
supported by the CBI team in Denmark<br />
opposed this plea with Indian and Danish<br />
Laws and facts, which was accepted by the<br />
Hon’ble Danish High Court and objection<br />
raised by the defence was not accepted.<br />
However, keeping the sensitivity and<br />
importance <strong>of</strong> the case it was decided<br />
to request the court in Kolkata to extend<br />
the execution date <strong>of</strong> the same warrant,<br />
which was duly done on 18-5-2011.<br />
However, this fact has no way affected<br />
the appeal proceedings in Danish High<br />
Court, which continued its hearings till<br />
19-5-2011 as decided earlier. The Danish<br />
High Court has concluded its hearing <strong>of</strong><br />
the appeal on 19.05.2011 and decided<br />
to pronounce the verdict before summer<br />
vacations beginning in month <strong>of</strong> July 2011.<br />
CBI filed charge-sheet<br />
against 9 accused persons,<br />
including the then Chairman<br />
<strong>of</strong> Organizing Committee<br />
and two private firms in a<br />
case relating to CWG - 2010<br />
CBI filed a charge-sheet against six the<br />
then <strong>of</strong>ficials <strong>of</strong> the Organizing Committee,<br />
including the then Chairman; three private<br />
persons and two companies in the TSR case<br />
pertaining to the Commonwealth Games -<br />
2010 in the Court <strong>of</strong> Special Judge CBI at<br />
Patiala House, New Delhi under Sections<br />
120-B read with Sections 420, 467, 468<br />
& 471 IPC and 13(2) read with 13(1)<br />
(d) <strong>of</strong> the Prevention <strong>of</strong> Corruption Act,<br />
1988 and substantive <strong>of</strong>fences there<strong>of</strong>.<br />
The persons/companies, who have been<br />
chargesheeted, are the then Chairman <strong>of</strong><br />
OC; the then Secretary-General <strong>of</strong> OC;<br />
52 CBI Bulletin April - June 2011
the then DG <strong>of</strong> OC; the then ADG (Sports),<br />
OC; the then DDG (Procurement), OC<br />
and the then Jt. DG (Finance), OC; two<br />
partners <strong>of</strong> Faridabad-based private<br />
firm; CMD <strong>of</strong> Hyderabad-based private<br />
construction company; Hyderabadbased<br />
private constructions company;<br />
and Switzerland-based private company.<br />
Earlier, CBI had registered a case on 29-<br />
11-2010 on the allegations that <strong>of</strong>ficials <strong>of</strong><br />
OC and private persons had entered into a<br />
conspiracy, in pursuance <strong>of</strong> which the public<br />
servants had abused their <strong>of</strong>ficial positions<br />
in order to manipulate the award <strong>of</strong> tender<br />
for Timing, Scoring & Result System for the<br />
Commonwealth Games to Switzerlandbased<br />
company at an exorbitant cost, in<br />
order to cause undue pecuniary advantage<br />
to the company and its representatives<br />
and wrongful loss to the Government.<br />
During the investigation, the allegations<br />
were substantiated and it was revealed<br />
that the chargesheeted the then <strong>of</strong>ficials<br />
<strong>of</strong> the OC had conspired with private<br />
chargesheeted persons and indulged<br />
in a series <strong>of</strong> forgeries, manipulations<br />
and machinations with an objective to<br />
award the TSR contract to Switzerlandbased<br />
company at an exorbitant net cost<br />
<strong>of</strong> approx. Rs. 157.62 crore (inclusive<br />
<strong>of</strong> taxes) as compared to a net bid <strong>of</strong><br />
Spain-based company for approx. Rs.<br />
62.01 crore (inclusive <strong>of</strong> taxes and<br />
sponsorships). Thus, a wrongful loss <strong>of</strong><br />
approx. Rs. 95.60 crore was caused to the<br />
OC and a corresponding gain to Swissbased<br />
company and its representatives<br />
by wilfully eliminating all competitors <strong>of</strong><br />
Swiss-based company. <strong>Investigation</strong> has<br />
further revealed that the representatives<br />
<strong>of</strong> Swiss-based company and the two<br />
partners <strong>of</strong> Faridabad-based firm actively<br />
conspired with the accused <strong>of</strong>ficials for<br />
getting the contract awarded to Swissbased<br />
company and received a payment <strong>of</strong><br />
approx Rs. 23.21 crore from Swiss-based<br />
company for certain perfunctory services.<br />
In this endeavour, they also conspired with<br />
the CMD <strong>of</strong> Hyderabad-based private<br />
constructions company, who raised highlyinflated<br />
and bogus invoices for approx.<br />
Rs. 11.28 crore for temporary cabling<br />
work, in order to justify the huge payment<br />
received from Swiss-based company.<br />
During the course <strong>of</strong> investigation,<br />
five arrested accused were sent to<br />
Judicial custody while the three private<br />
persons are absconding and arrest<br />
warrants are pending against them.<br />
Third Conference <strong>of</strong><br />
CBI Officers & Chief<br />
Vigilance Officers <strong>of</strong><br />
Public Sector Banks and<br />
Financial Institutions<br />
The Third Conference <strong>of</strong> CVOs <strong>of</strong> Public<br />
Sector Banks/Financial Institutions with<br />
CBI Officers was held in the new CBI<br />
Headquarters Building. The Director,<br />
CBI, Senior CBI <strong>of</strong>ficials and Chief<br />
Vigilance Officers <strong>of</strong> 31 Public Sector<br />
Banks/Financial Institutions were present.<br />
Delivering the Keynote Address, Director,<br />
CBI Shri Amar Pratap Singh said that<br />
CBI’s role is to investigate the criminality<br />
in bank frauds and it does not interfere in<br />
cases <strong>of</strong> prudent commercial judgement,<br />
even if such decisions involve risks<br />
or have resulted in losses to banks.<br />
The Director, CBI called upon banks<br />
to adapt to changing technology and<br />
to sensitize its <strong>of</strong>ficers to new methods<br />
<strong>of</strong> fraud, which are <strong>of</strong> late, noticed in<br />
electronic payments, technology-related<br />
payments like RTGS, Credit Cards, ATM,<br />
Cell Banking, Internet Banking, etc.<br />
Director, CBI said the Banking Sector has<br />
lost as much as Rs.1883 crore and Rs.<br />
2,017 crore during 2008-2009 and 2009-<br />
2010 respectively. These include over<br />
200 frauds <strong>of</strong> above Rs. one crore during<br />
each year. CBI Director Shri Amar Pratap<br />
Singh stated that banking <strong>of</strong>ficials are<br />
guiding Investigating Officers in scrutiny <strong>of</strong><br />
financial statement, credit appraisal, etc.,<br />
which has enhanced the pr<strong>of</strong>essionalism<br />
<strong>of</strong> CBI, in detecting bank frauds.<br />
The Conference discussed important issues,<br />
such as Preventive Vigilance, E-Tendering/<br />
E-Procurement and Forensic Auditing.<br />
The services <strong>of</strong> Bank Officers are being<br />
utilized in various branches <strong>of</strong> CBI, such<br />
as Bank Security and Fraud Cell, Economic<br />
Offences Unit and Anti Corruption Units<br />
in the CBI Headquarters as well as regions.<br />
CBI arrested a Joint Director<br />
(Office <strong>of</strong> D.G, Resettlement),<br />
Ministry <strong>of</strong> Defence and a<br />
Deputy Director-General,<br />
Ministry <strong>of</strong> Tribal Affairs<br />
in a bribery case<br />
CBI arrested a Joint Director working<br />
in the Office <strong>of</strong> Director-General <strong>of</strong><br />
Resettlement, Ministry <strong>of</strong> Defence, R.K.<br />
Puram, New Delhi and a Deputy Director-<br />
General, Ministry <strong>of</strong> Tribal Affairs, New<br />
Delhi in a bribery case <strong>of</strong> Rs. 60,000/-.<br />
CBI registered a case against Joint Director<br />
working in the Office <strong>of</strong> Director-General<br />
<strong>of</strong> Resettlement Ministry <strong>of</strong> Defence, R.K.<br />
Puram, New Delhi u/s 7, 8 & 9 <strong>of</strong> P.C.<br />
Act, 1988 on the basis <strong>of</strong> a complaint<br />
received. It was alleged in the complaint<br />
that the accused demanded a bribe <strong>of</strong> Rs.<br />
60,000/- from the complainant for getting<br />
his Annual Confidential Report upgraded.<br />
CBI laid a trap and the accused Joint<br />
Director (Office <strong>of</strong> DG <strong>of</strong> Resettlement,<br />
Ministry <strong>of</strong> Defence) was caught redhanded<br />
while demanding and accepting a<br />
bribe <strong>of</strong> Rs. 60,000/- from the complainant.<br />
The Deputy Director-General, Ministry <strong>of</strong><br />
Tribal Affairs was also arrested in this case.<br />
Searches were also conducted at the<br />
<strong>of</strong>ficial and residential premises <strong>of</strong><br />
both the arrested accused persons.<br />
CBI filed charge-sheet against<br />
16 accused in Dara Singh<br />
alleged fake encounter case<br />
CBI filed charge-sheet in the alleged fake<br />
encounter <strong>of</strong> Dara Singh in the Court <strong>of</strong><br />
Chief Judicial Magistrate, Jaipur u/s 120-B<br />
IPC r/w 302, 364, 346, 201, 218 IPC<br />
and substantive <strong>of</strong>fences there<strong>of</strong> against<br />
16 accused persons, the then Additional<br />
DG (Crime); the then SP (SOG); the then<br />
Additional SP (SOG); the then seven<br />
Sub-Inspectors; the then three Head<br />
Constables; the then two Constables, all <strong>of</strong><br />
Rajasthan Police and one private person.<br />
During the investigation, six accused were<br />
arrested and sent to Judicial custody.<br />
Remaining ten accused are absconding.<br />
CBI Bulletin April - June 201153
Proceedings u/s 82 & 83 Cr.P.C. have<br />
been initiated against all <strong>of</strong> them after<br />
obtaining Non-Bailable Warrants from<br />
the Competent Court. During the course<br />
<strong>of</strong> investigation, all accused persons<br />
were examined and given sufficient<br />
opportunity to present their plausible<br />
explanation/defence. Two accused (one<br />
Sub-Inspector and one Constable) had<br />
filed anticipatory bail and the same was<br />
rejected by the Sessions Court, Jaipur.<br />
Dara Singh, a resident <strong>of</strong> Village Mundital,<br />
District Churu, Rajasthan was allegedly killed<br />
by Special Operation Group, Rajasthan in<br />
the outskirts <strong>of</strong> Jaipur on 23-10-2006. On<br />
a petition filed by Smt. Sushila Devi wife<br />
<strong>of</strong> deceased Dara Singh, Hon’ble Supreme<br />
Court <strong>of</strong> India had directed CBI to take up<br />
the investigation. The investigation <strong>of</strong> this<br />
case is being monitored by the Division<br />
Bench <strong>of</strong> the Hon’ble Supreme Court. The<br />
CBI investigation revealed that Dara Singh<br />
was allegedly killed in a fake encounter<br />
in pursuance <strong>of</strong> a criminal conspiracy.<br />
CBI is further investigating u/s 173 (8) <strong>of</strong><br />
Cr.P.C., the role <strong>of</strong> some other persons for<br />
their alleged involvement in the conspiracy<br />
behind alleged killing <strong>of</strong> Dara Singh.<br />
CBI arrested seven accused<br />
and busts two rackets<br />
relating to manipulations<br />
in AIIMS PG Exam. held on<br />
8-5-2011 and in All India<br />
Pre-Veterinary Test<br />
held on 14-5-2011<br />
CBI arrested seven accused, including<br />
the main accused and busted two rackets<br />
relating to manipulations in AIIMS PG<br />
Exam. case held on 8-5-2011 and in All<br />
India Pre-Veterinary Test held on 14-5-<br />
2011. The arrested accused persons were<br />
produced before the Designated Court<br />
and were remanded to CBI custody.<br />
The alleged main accused is a doctor.<br />
In the All India Pre-Vet. Test held on 14-<br />
5-2011, the CBI registered a case against<br />
main accused; Proprietor & an employee<br />
<strong>of</strong> a private firm and others regarding<br />
manipulations in OMR Sheets for<br />
admission <strong>of</strong> a large number <strong>of</strong> candidates<br />
in B.V.Sc. & A.H. Course, 2011. It was<br />
alleged that the private firm was awarded<br />
contract by Veterinary Council <strong>of</strong> India for<br />
result processing, including manufacturing<br />
and scanning <strong>of</strong> OMR Sheets <strong>of</strong> the said<br />
examination. The accused in connivance<br />
with the candidates printed duplicate OMR<br />
Sheets <strong>of</strong> the said candidates bearing the<br />
same bar codes and replaced the original<br />
OMR Sheets by duplicate OMR Sheets in<br />
VCI <strong>of</strong>fice in order to get favourable result<br />
in the said examination. Incriminating<br />
documents were recovered during searches.<br />
Prior to this, the CBI had also registered<br />
a case regarding manipulation in the<br />
examination process <strong>of</strong> Post-Graduate<br />
Courses in AIIMS, New Delhi. It was<br />
alleged that the accused had entered into<br />
a criminal conspiracy with two employees<br />
<strong>of</strong> a private firm at New Delhi and others<br />
to manipulate the examination process<br />
<strong>of</strong> Post-Graduate Entrance Test <strong>of</strong> AIIMS.<br />
The accused persons used to contact<br />
candidates and assure them selection in<br />
the Entrance Test by manipulating their<br />
Answer (OMR) Sheets. The accused used<br />
to get the OMR Sheets <strong>of</strong> concerned<br />
candidates taken out through the two<br />
employees <strong>of</strong> the private firm and marking<br />
<strong>of</strong> unanswered questions (left blank by<br />
the candidates during the examination)<br />
was done by him and his associates. The<br />
two employees would then deposit the<br />
manipulated OMR Mark Sheets back<br />
before compilation <strong>of</strong> result. Hefty amounts<br />
were allegedly charged for such services.<br />
Searches conducted in Delhi and NCR at<br />
the residence <strong>of</strong> the main accused and<br />
his associates yielded recovery <strong>of</strong> original<br />
mark sheets; image <strong>of</strong> OMR Sheets <strong>of</strong><br />
suspected candidates; computer files<br />
relating to processing <strong>of</strong> result <strong>of</strong> AIIMS<br />
Post-Graduate Entrance Examination held<br />
on 8-5-2011 and blank cheques given<br />
by few candidates, who had appeared in<br />
the entrance examination. Incriminating<br />
material, including documents relating<br />
to the said examination as well as huge<br />
amount <strong>of</strong> cash recovered during the<br />
searches at the premises <strong>of</strong> employees <strong>of</strong><br />
a private firm. The prima facie scrutiny<br />
<strong>of</strong> seized documents indicates that at<br />
the time <strong>of</strong> scanning <strong>of</strong> OMR Sheets,<br />
the ovals were darkened <strong>of</strong> unanswered<br />
questions by the accused employees <strong>of</strong><br />
the private firm. It has been revealed that<br />
some candidates, who had answered only<br />
few questions and had left most <strong>of</strong> the<br />
answer sheet (OMR Sheet) blank, have<br />
secured high positions in the merit list<br />
published by AIIMS on 27th May, 2011.<br />
CBI arrested Joint Director <strong>of</strong><br />
CIB & RC under Ministry <strong>of</strong><br />
Agriculture in a bribery case<br />
CBI arrested a Joint Director <strong>of</strong> <strong>Central</strong><br />
Insecticide Board & Registration<br />
Committee, Ministry <strong>of</strong> Agriculture<br />
for demanding & accepting a bribe <strong>of</strong><br />
Rs. 40,000/- from the complainant.<br />
The complainant, authorized representative<br />
<strong>of</strong> a Hyderabad-based company<br />
had approached the Joint Director<br />
(Chemistry) <strong>of</strong> CIB&RC at Faridabad,<br />
who demanded Rs. 40,000/- as bribe for<br />
clearance <strong>of</strong> pending three files for the<br />
issuance <strong>of</strong> Registration Certificate for the<br />
purpose <strong>of</strong> manufacturing <strong>of</strong> pesticides.<br />
CBI laid a trap and the Joint Director,<br />
who called the complainant to his<br />
<strong>of</strong>fice at Faridabad along with the bribe<br />
amount, was caught red-handed while<br />
demanding & accepting a bribe <strong>of</strong> Rs.<br />
40,000/- from the complainant. Searches<br />
were also conducted at the <strong>of</strong>fice &<br />
residence premises <strong>of</strong> accused persons.<br />
Two accused sentenced to<br />
undergo 12 years’ Rigorous<br />
Imprisonment with fine <strong>of</strong> Rs.<br />
one lakh each for possession<br />
<strong>of</strong> contraband substances<br />
The Additional Session Judge, Fast Track<br />
Court-III, Gorakhpur, U.P., convicted<br />
two accused Amit Kumar Jaiswal @Amit<br />
and Mohd. Iqbal @Inderjeet Singh, both<br />
residence <strong>of</strong> Krishna Nagar, Kapilvastu<br />
(Nepal) for <strong>of</strong>fences punishable under<br />
sections 8 & 20 <strong>of</strong> NDPS Act. Both the<br />
accused were sentenced to undergo<br />
12 years’ Rigorous Imprisonment<br />
with a fine <strong>of</strong> Rs. one lakh each.<br />
Both the accused were arrested by CBI on<br />
18-10-2008, after recovery <strong>of</strong> 3.1 kgs. and<br />
3.0 kgs. <strong>of</strong> Charas (Hashish) respectively,<br />
from their conscious possession at<br />
54 CBI Bulletin April - June 2011
Railway Station, Gorakhpur, which was<br />
concealed by them in polythene pouches<br />
stitched in shape <strong>of</strong> a belt under their<br />
garments. After thorough investigation,<br />
a charge-sheet against the accused<br />
persons was filed in the Designated<br />
Court at Gorakhpur (UP) on 18-12-2008.<br />
The court found both the accused guilty<br />
for the <strong>of</strong>fence and convicted them.<br />
CBI registered a case against<br />
certain <strong>of</strong>ficers <strong>of</strong> MTNL;<br />
unknown <strong>of</strong>ficials <strong>of</strong> a<br />
private company and others<br />
for alleged irregularities in<br />
awarding work <strong>of</strong> broadcast<br />
network for CWG - 2010<br />
CBI registered a case against the then<br />
certain <strong>of</strong>ficers <strong>of</strong> MTNL and other<br />
unknown private persons <strong>of</strong> a Noida-based<br />
Private Company dealing in Optical Fibre<br />
Transmission u/s 120-B IPC and 13(2) r/w<br />
13(1)(d) <strong>of</strong> the Prevention <strong>of</strong> Corruption<br />
Act, 1988 on the allegations that MTNL<br />
awarded the work <strong>of</strong> broadcast network<br />
based on IP/MPLS Technology at an<br />
exorbitant price <strong>of</strong> approx. Rs. 570.12 crore<br />
by manipulating the specification in such a<br />
manner as to make them tailor made for<br />
the said bidder to the said private company.<br />
Though the broadcasting data transmission<br />
requirements for CWG - 2010 were very<br />
limited, based on optical fibre transmission,<br />
for which an initial estimate <strong>of</strong> approx. Rs.<br />
31.43 crore was prepared, the MTNL in<br />
their proposal included Broadcast Video<br />
Network based on IP/MPLS technology<br />
that grossly enhanced the network costing<br />
by Rs. 380.04 crore (approx.), allegedly<br />
with an intention to cause huge pecuniary<br />
advantage to the contracting firms. This<br />
resulted into huge loss to the Government<br />
Exchequer and wrongful gain to the Noidabased<br />
private company. The enhancements<br />
in the scope <strong>of</strong> work and engineering <strong>of</strong><br />
conditions <strong>of</strong> contract were made by the<br />
<strong>of</strong>ficials concerned <strong>of</strong> MTNL in such a<br />
manner that sub-contract could be awarded<br />
only to the said private limited company .<br />
After the registration <strong>of</strong> the case,<br />
searches were carried out in various<br />
parts <strong>of</strong> the country, including Delhi,<br />
Noida, Jaipur and Patna. During<br />
searches conducted, documents relating<br />
to immovable and movable property<br />
belonging to accused persons and other<br />
incriminating documents also recovered.<br />
CBI registered a case against<br />
an Additional Commissioner<br />
<strong>of</strong> Income Tax for possession<br />
<strong>of</strong> disproportionate assets<br />
Rs. 4.56 crore (approx.)<br />
CBI registered a case against an<br />
Addl. Commissioner (IRS-90) <strong>of</strong><br />
Income Tax, working in the Office <strong>of</strong><br />
Commissioner <strong>of</strong> Income Tax, Guntur<br />
for allegedly amassing disproportionate<br />
assets approx. Rs. 4.56 crore.<br />
It was alleged that the Addl. Commissioner<br />
<strong>of</strong> Income Tax, while working as<br />
public servant during the period 2000-<br />
2007, acquired assets in his name and<br />
in the name <strong>of</strong> his family members,<br />
which were disproportionate to his<br />
known sources <strong>of</strong> income to the<br />
tune <strong>of</strong> Rs. 4,56,63,105/- (approx.).<br />
Searches were conducted at the residential<br />
premises <strong>of</strong> Addl. Commissioner <strong>of</strong><br />
Income Tax (Guntur) at Vijayawada and<br />
recovered several incriminating documents<br />
pertaining to movable and immovable<br />
properties. During the searches, cash,<br />
Fixed Deposits & Travellers Cheques to<br />
the tune <strong>of</strong> Rs. 75.59 lakh; gold jewellery<br />
weighing about 6.6 kg. and silver items<br />
weighing about 49 kg. were recovered.<br />
CBI arrested a private person<br />
for accepting bribe <strong>of</strong> Rs. 7 lakh<br />
CBI arrested a private person in Jaipur<br />
(Rajasthan) for demanding and accepting<br />
illegal gratification <strong>of</strong> Rs. 7 lakhs from the<br />
complainant, who was facing a CBI trial case.<br />
It was alleged that the accused private<br />
person had demanded illegal gratification<br />
from the complainant on behalf <strong>of</strong> an <strong>of</strong>ficer,<br />
who was involved in the investigation <strong>of</strong> the<br />
CBI trap case, the complainant was facing.<br />
The accused was caught red-handed<br />
while demanding and accepting a bribe<br />
<strong>of</strong> Rs. 7 lakh from the complainant. The<br />
accused was produced before the court.<br />
CBI arrested a Divisional<br />
Engineer <strong>of</strong> Railways for<br />
accepting bribe <strong>of</strong> Rs. 50,000/-<br />
CBI arrested a Divisional Engineer<br />
<strong>of</strong> Indian Railway Service - 1995<br />
batch posted at Bhusawal Division<br />
(Maharashtra) for demanding and<br />
accepting a bribe <strong>of</strong> Rs. 50,000/- (Rs. Fifty<br />
thousand only) from the complainant.<br />
A case was registered against the accused<br />
for allegedly demanding a bribe <strong>of</strong> Rs.<br />
one lakh from the complainant for getting<br />
sanction <strong>of</strong> bills <strong>of</strong> Rs six lakh regarding<br />
painting work done by the complainant<br />
at Bhusawal Division, even though the<br />
work was executed. CBI laid a trap and the<br />
accused was arrested while demanding and<br />
accepting the bribe <strong>of</strong> Rs. 50,000/- as partpayment<br />
in his <strong>of</strong>fice from the complainant.<br />
Searches were conducted at the<br />
<strong>of</strong>ficial and residential premises <strong>of</strong> the<br />
accused, which yielded recovery <strong>of</strong><br />
cash & documents relating to bank<br />
accounts and 3 flats at Nagpur, besides<br />
other incriminating documents.<br />
The arrested accused was also<br />
produced before the Designated Court.<br />
CBI arrested an absconding<br />
accused in a forgery<br />
& cheating case<br />
CBI arrested an absconding accused, who<br />
was involved in the <strong>of</strong>fence <strong>of</strong> forgery,<br />
cheating & duping innocent public.<br />
A case was registered by the CBI u/s 420,<br />
467 and 468 <strong>of</strong> IPC against accused <strong>of</strong><br />
Visakhapatnam and others for cheating<br />
different persons by presenting forged<br />
documents purportedly issued by the<br />
Director, CBI; British High Commission &<br />
Union Finance Ministry (Government <strong>of</strong><br />
India) and using these forged documents<br />
as genuine, thereby inducing the innocent<br />
persons to part with huge amounts.<br />
During the course <strong>of</strong> investigation, it was<br />
found that the Visakhapatnam-based<br />
accused forged documents purportedly<br />
issued by the Director, CBI; Ministry <strong>of</strong><br />
Finance & British High Commission. The<br />
accused used these forged documents<br />
as genuine and cheated many persons<br />
to the tune <strong>of</strong> crores <strong>of</strong> rupees with the<br />
help <strong>of</strong> his vast network <strong>of</strong> associates<br />
spread in various parts <strong>of</strong> the country.<br />
CBI Bulletin April - June 201155
56 CBI Bulletin April - June 2011