SP Group launches internal inquiry on arrest of executive in bribery case

Shapoorji Pallonji group on Saturday said it has launched an internal inquiry into the alleged conduct of one of its executives arrested by the CBI in a bribery case to settle an appeal in favour of the engineering and construction major. The CBI has arrested Commissioner of Income Tax (Exemption), Hyderabad, Jeevan Lal Lavidiya, for allegedly accepting a bribe of Rs 70 lakh to settle an appeal in favour of Shapoorji Pallonji Group, officials said on Saturday.

Lavidiya, a 2004-batch Indian Revenue Service officer, was arrested along with Viral Kantilal Mehta, Deputy General Manager (Taxation) of Shapoorji Pallonji Group; Sairam Palisetty; Natta Veera Naga Sri Ram Gopal; and Sajida Majhar Hussain Shah, they said.

Reacting to the development, SP Group in a statement said, "Given the seriousness of these allegations, the group has already launched an internal enquiry into the alleged conduct and will take the necessary steps based on the outcome of the investigation."

Stating that it "has been made aware of a serious allegation of misconduct against an employee of one of our group company subsidiaries", the group said, "the alleged conduct was not with the knowledge of the Group, nor was it sanctioned by the Group".

In fact, it further said, "This goes against the very values and policies that the Group upholds in its business operations. The group remains committed to fully cooperate with the relevant authorities in their investigations."

The group is resolute in its commitment to uphold its 160-year-old legacy of conducting business with transparency, integrity and in full compliance with all applicable laws, it added.