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| CBI books two NHPC CEs, L&T in corruption case | | | EARLY TIMES REPORT
JAMMU, May 29: The anti-corruption wing of CBI has booked two former NHPC chief engineers (CEs), Larsen and Toubro (L&T) -- an engineering and construction major in the country -- and some unknown persons for allegedly causing a loss of nearly Rs 3 cr to the state exchequer by adopting fraudulent means.
Said to be among the largest and most reputed construction companies in India's private sector, L&T failed to execute within stipulated period a work alloted to it under Rajiv Gandhi Gramin Vidyut Yojna for below poverty line (BPL) category villages in Kathua district.
The work was alloted to it on April 3, 2007, vide contract No NH/Cont (E&M)- III/RE-24/PR-272/710/07/I and II for supply of material worth Rs 22,29,45,609 and for erection-cum-execution work worth Rs 7,00,67,520.
As per clause 13 of section SCC of the Contract Agreement, the rural electrification work was required to be completed within 14 months from the date of Letter of Award, failing which liquidated damages were to be deducted at the rate of 0.5 per cent of the contract per calendar week, maximum 10 per cent of the contract price.
The work was to be completed by June 2, 2008, CBI sources said.
However, it could not be completed by L&T within stipulated period and was lying incomplete even after the expiry of three years, the sources added.
Instead of deducting liquidated damages, the then NHPC CE B L Gupta allegedly colluded with L&T and granted it provisional extension against the Corporate Office Contract Division Circular No. NHPC/ED(CC)/GEN/CIRCULAR/07/342 dated October 11, 2005 which stipulated that the extension of date could be granted with the approval of competent authority and no provisional time extension could be granted.
Similar time extensions were also granted by NHPC CE M K Bohara in 2009. As per the value of contract, only NHPC CMD was the competent authority to accord time extension but his orders were not taken, rather accused officers had granted extensions unilaterally without their competence.
Sources said out of Rs 2.93 cr, only Rs 15.68 lakh were withheld, causing loss to the government exchequer to the tune of Rs. 2,77,32,000.
Concluding investigation in the case, CBI booked the two chief engineers, L&T and some unknown persons under section 120-B read with section 420 of RPC and section 5(2) read with 5(1)(d) of J&K Prevention of Corruption Act, 2006.
The case investigation was done by CBI investigating officer Ashok Kalra under the supervision of SSP MK Bhat.
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