The Central government has sent a show-cause notice to former Finance Secretary Arvind Mayaram seeking his explanation on how extensions were given to DelaRue, a British firm, in 2012 for the supply of colour shift (security) thread without tenders during tenure, according to Indian Express report. Notably, on Wednesday he had called demonetisation a ‘serious error of judgment.’
In 2014, Finance Secretary Arvind Mayaram was shunted out of the Finance Ministry and given a low profile Ministry of Tourism, PTI reported. It was considered as a surprise move. Mayaram is a 1978-batch IAS officer belonging to Rajasthan cadre. Mayaram’s transfer was part of the first major Secretary-level reshuffle undertaken by Prime Minister Narendra Modi-led government, PTI had reported
The thread is an important component of a currency note that changes colours and, in some notes, appears as a straight line when the note is held against the light, IE report says. Incidentally, DelaRue was blacklisted by the Government in 2011 after some of their supplies failed quality checks and later the company and its Indian representatives were named in the Panama Papers, the report says. “The DelaRue matter is something to do with procedure and not substance and, yes, my explanation has now been sought on different counts. I have already sent my reply to the DoPT. It is indeed a sad reflection on how the system functions,” Mayaram to Indian Express.
According to IE report, officials said Mayaram has been asked to explain: one, why he sought a three-year extension of DelaRue’s contract; two, why had the Ministry not asked for a tender; and, three, why didn’t he seek the approval of then Finance Minister P Chidambaram.