Phatak (1978 IAS batch) and Vyas (1989 IAS batch) were suspended on March 22, 2012 and later arrested by the CBI. Phatak's son was a member of the Adarsh housing society, Vyas had secured a membership in the name of his wife, Seema, also a bureaucrat. The CBI's contention was that Phatak and Vyas had misused their position to obtain the membership of the society for their son and wife.
Phatak was the then civic chief and Vyas had been the collector. The state had established a judicial commission to investigate the case. Initially, the report was rejected but following Congress V-P Rahul Gandhi's intervention, it was accepted. The state cabinet decided not to conduct a probe against politicians but a departmental probe was proposed against bureaucrats.
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