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BJP demands CBI probe into Xerox bribery scandal

Onkar Singh in New Delhi

Terming the 'improper payments' made by Xerox ModiCorp to secure government contracts as a 'serious violation of law,' the Bharatiya Janata Party on Wednesday demanded a probe by the Central Bureau of Investigation into the matter.

"If what has been stated by Xerox is true, it is a serious violation of Indian laws - anti-graft and Companies Act - and requires an investigation," party spokesman Arun Jaitley told reporters in New Delhi, reacting to US-based Xerox Corporation admitting in a report that its Indian subsidiary Xerox ModiCorp paid $700,000 as 'illegal payments' to officials.

"I have not seen the full text of the statement as yet. But the matter needs to be investigated by the CBI -- not by the Company Law Board -- because this relates to corruption. It also negates the theory that only government sector officials are involved in corruption. It happens in the private sector as well," he said.

The process of law must be enforced strictly to identify the recipients of the graft, he said.

US-based Xerox Corporation has said in its annual report to the US Securities and Exchange Commission that its Indian subsidiary made improper payments to the tune of $700,000 to officials to boost its sales to government customers in India.

Legal experts claim that if the Company Law Board investigates the case, then the guilty could get away merely by paying a fine - which can be as low as Rs 200 for flouting the company law norms.

Officials of Xerox ModiCorp, where the US company
acquired majority stake three years ago, declined to comment on the issue, while its original promoter B K Modi - who now has minority holding - could not be contacted as he was out of the country.

Xerox Corporation has 68 per cent stake in the joint venture with ModiCorp.

Additional inputs: PTI

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