In 1995, Bendkhale, attached to the exchange's engineering department, had issued a Demand Note of Rs 56,660 for 10 junction GEPABX connection to one M/s Ajanta Centre. He also authorised 57 extension lines to the centre.

Bendkhale claimed that the project had been cleared by the General Manager; however, according to the vigilance report, he did not seek the approval of his seniors.

Officials stumbled upon the crime during an internal audit in 1996, anda probe was ordered by the General Manager, Vigilance. Investigations revealed that the demand note for the project had been made despite the fact MTNL had frozen connections to Bhayander area. Also, the technical feasibility of the report was not submitted to General Manager (W-III). The report further stated that while Ajanta Centre went ahead with the project, leasing out 57 lines, a similar proposal made by M/s Dynamics was rejected.

Moreover, no immediate action was taken to regularise the mistake, and another demand note (DN) was put up for six more junctions for the same area, adds the report. The report had recommended that suitable disciplinary action be initiated against Bendkhale.

Deposing before the vigilance commission, AGM Bendkhale stated that the proposal was not put up for the approval of the General Manager (Kandivli Telephone Exchange) due to `oversight'.

The General Manager, Vigilance, Sanjay Kumar, refused to speak to this newspaper, instead referring the matter to Area GM I CShrivastav, who also refused to comment.