Gadhia resigns amid fund-raising investigation

September 01, 1995|By Jay Hancock | Jay Hancock,Sun Staff Writer Sun staff writer Marcia Myers contributed to this article.

Lalit H. Gadhia, who is under investigation for possible violation of campaign finance laws, resigned two months ago from his job at the state's economic development agency, state officials said yesterday.

Mr. Gadhia resigned June 30 as assistant secretary for the international division at the former Department of Economic and Employment Development. His resignation was not unexpected.

He had taken an unpaid leave from the $80,000-a-year job in May after a report in The Sun questioned whether he had broken federal laws in raising money for a political action committee that promotes the interests of Indian-Americans.

The decision to resign was Mr. Gadhia's, said officials at DEED's successor agency, the Department of Business and Economic Development.

Mr. Gadhia, who has been a fund-raiser for Maryland Democrats and was appointed to DEED by Gov. Parris N. Glendening, could not be reached for comment. The resignation was never announced by DBED. "He has been ancient history for so long that it was not considered to be big news," said James Brady, DBED secretary.

The FBI started investigating Mr. Gadhia's activities in May and has presented evidence to a grand jury. The investigation concerns allegations that Mr. Gadhia steered thousands of dollars in illegal contributions to a New Mexico political action committee last year.

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