CBI raids Cochin Shipyard on sale of steel scrap scam
Express News Service reported that the CBI’s anti-corruption unit at Kochi carried out a raid at the Cochin Shipyard Limited as part of a probe into graft in the auctioning of the ship repair steel scrap. The raid started in the morning and was still continuing. Officers said CBI has registered a case against CSL assistant general manager N Ajith Kumar, Kochi-based company South Indian Scrap Traders and its proprietor Mohammed Ali.
The FIR registered in the CBI court in Kochi states that CSL decided to conduct an e-auction of 1000 metric tonnes of ship repair steel lying in quay-1 through MSTC, Bangalore. The reserve price fixing committee had fixed a rate of INR 18,500 per metric tonne and a subject-to-approval price of 17,575 per metric tonnes. However, e-auction was cancelled as the highest bid of INR 14,632 was less the fixed price.
Fresh bids were called on four occasions in November and December 2016. But the highest bid remained less than the reserve price.
Then a private valuer was engaged as per whose recommendation the reserve price was fixed at INR 12,418 per metric tonnes and a subject-to-approval price of INR 11,797.10 per metric tonnes. In the auction held on February 8, 2017, the scrap was awarded to South India Scrap Traders which quoted INR 14,622 per mt.
The sale order decreed that advance payment must be made for every 250 metric tonne of scrap and a total amount of just over INR 1.55 crore in four phases.
According to CBI, assistant general manager Ajith Kumar colluded with Mohammad Ali and allowed the South Indian Scrap Traders to pick up its payload without paying the advance amount.
As per the sale order, the buyer was required to clear the entire available quantity of scrap from earmarked areas on the CSL premises. Segregation of scrap was not permitted. However, Ajith Kumar permitted the company to segregate and take out quality steel scrap from the earmarked areas.
Further, only acetylene/oxygen gas was permitted for hot cutting works. However, LPG gas, which is less costly and hazardous, was used.
After picking up quality steel, South Indian Scrap Traders submitted a letter to CSL stating that 799 mt of waste was cleared and only old tin and sheets mixed with soil and mud were remaining.
Following the inauguration of CSL’s new dry dock, the decision was taken to remove the rest of the scrap on an urgent basis. For this, Ajith Kumar approached Mohammad Ali and his company and a deal was struck to remove the remaining scrap for just INR 1.5 lakh. This was done without fixing a reserve price.
Source : Express News Service