CBI books ex-officials of TCE, JNPT in Rs 800 cr irregularities in dredging work in Mumbai

New Delhi, Jun 20 (PTI) The Central Bureau of Investigation has filed a case against former officials of Jawaharlal Nehru Port Trust (JNPT) and Tata Consulting Engineers (TCE), and two dredging companies over alleged irregularities worth over Rs 800 crore in a project to deepen ship navigational channels near Mumbai, officials said. The agency took the action after a three-year-long preliminary inquiry to look into the allegations of inflated estimates, throttling of competition to favour international bidders, extension of undue favours to contractors, and suppression of reports of independent expert organisations.

In its FIR, the CBI has booked the then chief engineer of JNPT Sunil, Kumar Madabhavi, then project director of TCE, Devdutt Bose, Boskalis Smit India LLP, Jan De Nul Dredging India Pvt Ltd and other unidentified public servants under IPC Section 120-B (criminal conspiracy), 420 (cheating) and provisions of the Prevention of Corruption Act.

No immediate reaction was available from the accused companies.

"The allegations of pecuniary advantage obtained by the private companies as a result of abuse of official position by the JNPT officials resulting into a huge wrongful loss to the exchequer, spread over the period from 2003 to 2014 (phase-l of the project) and 2013 to 2019 (phase-ll of the project) was also inquired," the CBI said in the FIR.

The inquiry showed a criminal conspiracy between JNPT officials and other private persons, including an official of Tata Consulting Engineers, and others, which resulted in wrongful loss amounting to Rs 365.90 crore for phase-I and Rs 438 crore for phase-ll to JNPT due to over-dredging.

The case pertains to a project envisaged by the JNPT to deepen and widen the navigational channel it shared with Mumbai Port in 2003 to cater to the needs of larger size cargo ships.

TCE was roped in for preparation of a final report on the planning for dredging activities for the Capital Dredging Phase-I project which was submitted in 2010 in association with Dredging Solution.

TCE was also awarded the work of project management consultant for the project, including preparation of the tender documents and work of supervising the execution of the work, the FIR alleged.

The CBI during its preliminary inquiry found that JNPT officials along with TCE executives kept tender conditions to favour foreign bidders, and violated the guidelines of Competition Commission of India by allowing complimentary bidding, and allowed the formation of the JV by solely eligible bidders Boskalis Smit India LLP with Jan De Nul Dredging India Pvt Ltd (also known as BSI-JDN JV).

In addition, the CBI inquiry also showed violation of a number of guidelines related to fixation of rates for dredging different type of rocks, delay in project, false claim of Rs 348 crore by the contractor, without actual performance of work, excess payment of Rs 430 crore, and manipulation of the pre-dredge survey by using a less accurate software, 'Qinsy', among others. PTI ABS ARI