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CBI Registers Cheating Case against Adani Enterprises and Former Officials of NCCF in APGENCO Coal Transportation Tender

Coal News - Published on Fri, 17 Jan 2020

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CBI has registered a case of cheating and corruption against Adani Enterprises and former CMD of National Co-cooperative Consumer Federation India Ltd Mr Virender Singh, then managing director of NCCF Mr GP Gupta and its senior advisor Mr SC Singhal for alleged irregularities in selecting a company for a tender to ferry coal from ports to power stations in Andhra Pradesh. The CBI has alleged criminal conspiracy and cheating and Provisions of Prevention of Corruption Act for allegedly favouring the Ahmedabad-based company in the tender and violation of guidelines. Andhra Pradesh Power Generation Corporation had floated a limited tender enquiry for the supply of 600,000 tonnes of imported coal from sea ports to Narla Tata Rao Thermal Power Plant in Vijaywada and Rayalaseema Thermal Power Plant in Kadapa on June 29, 2010.

The CBI alleged that acts of omission and commission by the NCCF officers disclose that they acted in a manner as unbecoming of public servants and conspired with the company. The FIR said the officers committed irregularities by the way of manipulation in the selection of the bidders, thereby giving undue favour to Adani Enterprises Ltd. in award of work for supply of imported coal to APGENCO despite its disqualification.

CBI alleged that “Hyderabad unit of NCCF which had received the APGENCO tender enquiry on June 29 had forwarded it to its headquarters in Delhi to Mr Singhal. The same day the head office selected a single party Maharishi Brothers Coal Limited to transport the coal at a margin of 2.25 per cent instead of initiating the process for floating an open tender to call for bids from the competitive bidders citing lack of time as the deadline was July 7. Six days later on July 7, APGENCO informed NCCF, Hyderabad that the date of tender has been extended to July 12 following which allocation to MBCL was cancelled and open tender was floated. It is pertinent to mention here that before extension of the date of tender they had seven days and after extension of date they had five days only but now management felt that they have sufficient time to call open tender. The draft tender notice was discussed and approved by three senior officials of NCCF Mr Singhal, Mr Gupta and Mr Singh, who ignored laid down guidelines without consulting Head Office level committee. Six bidders Adani Enterprises, MBCL, Vyom Trade Links, Swarana Projects Gupta Coal India, and Kyori Oremin responded to NCCF Tender on July 10, 2010 whose details and bids were tabulated and sent to the headquarters by Hyderabad unit on the same day. Gupta Coal had quoted 11.3 per cent NCCF margin while MBCL had kept it at 2.25 per cent but remaining companies had not quoted any NCCF margin. Bids of Gupta Coal, Kyori Oremin and Swarana Projects were rejected by NCCF as they did not fulfil tender conditions. Senior officers of NCCF did post tender negotiations with Adani Enterprises to give it undue benefits even though the company did not qualify when tender was opened at Hyderabad office of NCCF. Instead of cancelling the bid of Adani Enterprises Ltd. senior management of NCCF conveyed the offer margin of NCCF to the company through one of its representatives Munish Sehgal who was sitting in the NCCF head office on July 10, 2010 in the eveningSubsequently Adani Enterprises Ltd on the same day informed NCCF that they agree to pay minimum margin charge of 2.25 per cent to NCCF. It is prima facie evident that when the bids were being processed at NCCF HO. New Delhi. Representative of Adani Enterprises was Informed regarding their imminent rejection due to non-submission of NCCF margin and also that MBCL, the eligible bidder had quoted 2 25 per cent margin.”

The agency has also alleged that Vyom Trade Links was a proxy of Adani Enterprises which had given it an unsecured loan of INR 16.81 crore and withdrew its offer at last stage on flimsy grounds.

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Posted By : Rabi Wangkhem on Fri, 17 Jan 2020
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