The Sahara group has sacked its controversial senior vice president Gautam Goswami, former Patna district magistrate who has been evading arrest since he was named key accused in the Rs.170 million Bihar flood-relief scam.

Sahara India officials said Goswami had failed to provide the mandatory clearance certificate from the government for resigning from the civil services and joining a private sector entity.

"He was given 15 days' time till June 6 to furnish us the clearance certificate. Since this time has lapsed and he remains incommunicado, we have terminated his services," a Sahara group spokesperson told IANS on phone from Lucknow.

Sahara, which announced the termination late Wednesday, had offered Goswami the job after Time magazine named him among 20 Asian Heroes for the handling of flood relief distribution and rescue operations in Bihar last year and his "brilliant work" over the years.

Though a press release issued from Sahara's head office in Lucknow said Goswami was sacked because he did not submit the necessary papers, sources here said the action was prompted by the Bihar vigilance bureau's decision to serve a legal notice on the group. 

Vigilance bureau additional director general Neelmani had said Wednesday that a legal notice would be served on the group for non-cooperation with its team, which has been camping in Lucknow for over a week.

The vigilance department is probing the allegations that Rs.170 million meant for flood relief operations was siphoned off.

Last month, the state government had issued a show cause notice to Goswami for allegedly violating service rules by joining a private company without being relieved from government service.

The government maintained that it had not accepted his resignation and that he was still an Indian Administrative Service official of the Bihar cadre.

Goswami's bail plea had also been turned down by a special court, saying prima facie evidence suggested the former district magistrate's involvement in diverting funds meant for victims of floods in Bihar last year.

A vigilance judge had on May 31 issued non-bailable warrants against Goswami and eight others, including contractor-turned-politician Santosh Kumar Jha, the alleged kingpin of the scam, who surrendered last week and was sent to judicial custody.

Goswami's bank accounts have also been attached by the income tax department.

Jha has already surrendered and been remanded in judicial custody till June 10.