In December 2023, a section officer in the Comptroller and Auditor General of India’s Delhi office, Mukhbain Singh, wrote to the Prime Minister’s Office alleging corruption by Vishal Desai, posted as Director (Personnel) in the office. Eight months later, senior officials in the CAG received an anonymous complaint with a list of allegations against Desai—some of them the same as those made in the 2023 letter to the PMO.

After the identity of the sender of the anonymous email was verified, a higher-ranking officer even recommended an inquiry against Desai. An investigation by The Probe found that instead of being subjected to an internal investigation, Desai was allowed to go on a foreign posting to London.

Three months later, he was suddenly brought back to India to face an investigation by an internal committee. 

The allegations against Vishal Desai

In his letter to the PMO in December 2023, Mukbhain Singh accused Desai of financial irregularities and corrupt activities. “Vishal Desai is involved in manipulating transfers/postings of the middle-level officers, even IAAS (Indian Accounts and Audit Service) officers, through underhanded dealing. It has come to light that Vishal Desai is also manipulating to depute the Assistant Audit Officers (AAO) and Audit Officers (AO) for audits to different PSUs and government officials so that the audit report becomes weak and the financial irregularities do not surface. In lieu of this, he is taking money from various PSUs in connivance with the audit officers,” the letter alleged. 

Mukhbain also accused Desai of manipulating the list of AO/AAO/IAAS officers sent abroad for audits of various Indian missions by taking money. Further, he accused Desai of even taking money from vendors to award contracts of food, decoration, etc., while arranging for events in the Delhi office.

Several months after this complaint was received, on June 27, 2024, Vishal was given a posting in London as Director in the office of Principal Director of Audit.  

On 21 August 2024 and again on 27 August 2024, a nearly 6,000-word email from "a cohort of vigilant employees working at the CAG office" reached senior officials within the CAG. Signed off by the whistleblower on behalf of this group, the email (accessed by The Probe) detailed a series of serious allegations against Vishal Desai. This included allegations of sexual harassment, bribery, embezzlement of funds, and unauthorised travel.

According to the complainants, these allegations added to the growing list of financial misconduct within the organisation and raised serious concerns about the integrity of the internal financial management of the Comptroller and Auditor General of India’s office.

The letter alleged that Desai had suppressed multiple complaints, including those to the PMO. It warned that, without action, the matter would be escalated to the PMO, the Central Vigilance Commission, and prominent media outlets to ensure accountability and prevent further misconduct.

The complaint included annexures that the complainants self-identified as current CAG officials. The Probe has obtained copies of these documents and photographic evidence. However, we have not independently verified the evidence or investigated the claims against Desai.

On September 6, 2024, just a few days after the complaint was received at the headquarters, Desai assumed charge as Director in the office of Principal Director of Audit in London. 

Vishal Desai’s overseas assignment was authorised despite requests from senior officials within the institution for an inquiry into his conduct. Notably, an Additional Deputy Comptroller & Auditor General urged action in an August 28, 2024 communication. The officer argued that the complaint filed by the whistleblower should no longer be considered anonymous as the complainant had provided even his Aadhaar card copy and that the matters raised in the complaint provided substantial grounds for initiating a preliminary inquiry. This inquiry, the officer emphasised, was essential to either clear Desai’s name or confirm the truth behind the allegations, leading to appropriate action.

Vishal’s response

The Probe has obtained a copy of an unsigned response allegedly from Vishal Desai regarding the allegations made against him. In this reply, Desai categorically denies all accusations, describing them as “unsubstantial and malicious.” He further states, “The malicious attack on my family members is very upsetting and compelling me to ponder as to where our cadre is heading to. I am sure that this unwarranted response suffices everyone’s intellectual thirst. Having said all these, I also think that such kind of baseless allegations made by few and aired by few others is a challenge to the entire IAAS fraternity.” Desai then offers a point-by-point rebuttal to the allegations made against him.

In a telephonic conversation with The Probe, Desai confirmed that he had denied certain allegations and said that “internal politics within the organisation” was the driving force behind these accusations levelled against him.

Inquiry instituted 

A senior official from the CAG, speaking on condition of anonymity, told The Probe, "The question is, how was this gentleman sent to London when he was facing these grave allegations? Why wasn't a committee of inquiry constituted to investigate the truth? If the headquarters believed that he was innocent, then the question is, why did they hastily call him back?"

On October 23, 2024, the CAG office issued an order—obtained by The Probe—which cited 'administrative reasons' for Desai’s return. The order reassigned him as Senior Deputy Accountant General in Jaipur, Rajasthan, and he was instructed to take charge by November 10, 2024.

Even as he was posted in Jaipur, a formal inquiry was reportedly launched against Desai and was overseen by three CAG officers: S Alok, the Director General of Audit, Defence Services; Roli S Malge, the Accountant General in New Delhi; and Sreeraj Ashok, the Senior Deputy Accountant General in Bhubaneswar. 

One of the officers, Sreeraj Ashok, has been given an overseas posting. A November 11, 2024, order stated: “Sreeraj Ashok, Senior Deputy Accountant General (Administration), Bhubaneswar, is transferred and posted as Director in the newly created Office of the Director of Audit, Nairobi, Kenya.”

In their response to The Probe, the CAG said that Vishal Desai’s posting orders were issued much before the complaints were received. “The allegations were thoroughly investigated as per the extant DOPT provisions. Subsequently, a systems study was undertaken on related issues, and he was recalled from London to India on administrative grounds as numerous serious allegations surfaced against him. His presence was necessary in India to ensure that a free and fair inquiry into the allegations can take place,” the CAG said.