The CAG has dismissed Principal Director Sharada Subramaniam (IA&AS:1991) for irregularities allegedly committed by her 17 years ago when she was on deputation at the Coffee Board of India as director of finance. This is claimed to be in line with its policy of zero-tolerance against corruption.

The CAG is very particular about the conduct of its officials, technically the dismissal of the principal director was affected by an order of the President of India. Subramaniam denied the charge which, she said, was baseless because of two prime reasons -- “non-availability of old files, and no single penny was diverted into any individual or personal account”.

“It is not necessary that an action taken by the government is the gospel truth. I have moved CAT [the Central Administrative Tribunal] and am awaiting justice,” she said.

Sources in the CAG’s office said, “She was dismissed from service immediately after the finance ministry gave its approval in May this year.” Email queries sent to CAG and the ministry of finance did not elicit any response.

The CBI booked the principal director for allegedly diverting funds of the Coffee Board during her posting there. It said, quoting the first information report (FIR) filed by the Central Bureau of Investigation, that Subramaniam was charged with allegedly diverting Rs 16.2 crore of the Coffee Board funds into mutual funds, causing a loss of Rs 53.3 lakh to the organization and corresponding gain to herself during her posting as its director, finance. The case pertained to the period between 1998 and 2003.