The Central Bureau of Investigation (CBI) conducted searches at the premises of M.A.M.R. Muthiah, managing director of the Chettinad International Coal Terminal Pvt. Ltd. (CICTPL), and two senior officials of the Kamarajar Port on Saturday last.
The searches followed the registering of a case by the agency’s Anti-Corruption Branch against CICTPL, represented by Mr. Muthiah, and the Port officials, on charges of criminal conspiracy, cheating and misconduct, CBI sources said on Monday.
Revenue pact violations
The allegation is that the Port and CICTPL entered into a Build Operate Transfer (BOT) agreement under the Public Private Partnership module for developing coal handling facilities.
However, even after the land earmarked for development was handed over, CICTPL did not take up the work. After the company commenced commercial operations 2010, there were some violations in the revenue sharing agreement.
The company had an outstanding revenue share of ₹47.65 crore in February 2014. Two top officials of the Port — General Managers Sanjay Kumar and Gunasekaran — failed to realise the dues by invoking bank guarantee of CICTPL.
The matter was subsequently referred to the arbitral tribunal, which, after several sittings, concluded that the company had to pay ₹55.69 crore, including interest.
Even then, the officials took no steps to encash the bank guarantee and instead, delayed the process by giving CICTPL time to challenge the award in court.
They also facilitated a waiver of liquidated damages to the tune of ₹1.31 crore, a waiver of interest towards rent worth about ₹40 lakh and compensation of ₹35 lakh for the construction of a road.
While the company made a conditional payment and went on appeal, the loss to Kamarajar Port was pegged at ₹2.01 crore, which could have been avoided, had due process been followed, agency sources said.
Mr. Muthiah is the adopted son of late industrialist M.A.M. Ramasamy, who disowned him later on.
