CBI institutes PE into alleged irregularities in issuance of KoPT cargo licences

The Central Bureau of Investigation has instituted a preliminary enquiry to probe loss to the exchequer due to alleged irregularities in the issuance of cargo handling and shore operation licences to private agents by the Kolkata Port Trust (KoPT). According to top CBI sources, the PE was initiated against “unknown persons” about a week ago. The agency has already asked the port authority for all relevant documents pertaining to the tendering of cargo handling and shore operations over the years.

It is alleged that the same set of agents had been getting licences at paltry rates for the past several years.

The CBI has launched the probe following allegations by BJP Member of Parliament from Bharuch (Gujarat) Mansukhbhai D. Vasava that flawed policies had resulted in a loss of not less than Rs.8 lakh crore to port authorities across the country. He alleged that cargo handling licences were also awarded in violation of set rules. Taking up the matter, the Ministry of Shipping recently wrote to the KoPT chairman seeking an explanation on the procedure adopted for issuing licences, the revenue generated through licence fees, and the rates charged by the agents for the services, including at the Haldia port. Similar explanations have reportedly been sought from the other major port authorities.

As earlier reported in The Hindu, the Ministry dissolved the Trustee Board of the KoPT a few days ago. Through a letter dated July 8, the Shipping Ministry also reiterated its order issued in June 2013 on formulation of a scheme for collection of royalty from cargo handling agents “based on an open and transparent auction process”. It directed that a detailed justification of the projected amounts to be received, the timing of the levy, modalities of collection and its utilisation be placed before the competent body at the earliest.

The government has also set up a committee to inquire into the alleged violations in issuance of on-shore cargo handling licences and revenue losses incurred at the major ports.