DVAC files FIR against 10 ex Tangedco officials on Rs 900 Cr graft

CHENNAI: Based on a complaint from Arappor Iyakkam pertaining to Rs 900 Crore corruption in coal handling tenders, the Directorate of Vigilance and Anti Corruption has filed FIR against 10 persons including 5 former senior officials of Tamil Nadu Generation and Distribution Corporation (Tangedco).

In September 2018, Jayaram Venkatesan of Arappor Iyakkam sent a petition to the government regarding the corruption based on which the DVAC conducted detailed enquiry after obtaining permission from the government.

As per the FIR, Tangedco floated a tender to handle coal at Visakhapatnam Port in September 2000 and a bid was awarded to South India Corporation Private Limited (SIC Limited) in February 2001 to carry out work for 5 months.

Visakhapatnam Port Trust charges tax based on the permanent labourers of Vizag Dock Labour Board used by the contractor. The levy will not be charged if temporary labourers are used by the contractor. As per the purchase order, it is very clear that reimbursement of statutory labour charges should be done by submitting the document defining the quantity of coal handled by number of labourers used and levy amount paid to the Port Trust, the FIR said.

As the contract ended, Tangedco floated another tender in September 2001 but Western Agencies Madras Private Limited filed a civil suit in the court and got a stay against opening the bid. The detailed inquiry revealed that, SIC Limited conspired with Western Agencies Madras Private Limited to obtain stay and used the stay to continue coal handling till 2019. Concerned officials continued to issue purchase orders to SIC Limited upto 2019.

The enquiry further revealed that SIC Limited paid Rs. 217 Crore as levy to Visakhapatnam Port Trust between 2011-2019, whereas Tangedco paid Rs. 1,126 Crore as reimbursement of tax. The difference is Rs. 908 Crore, which is loss caused to Tangedco, the FIR added.