The Central Bureau of Investigation has registered a case against unknown officials of the V.O. Chidambaranar Port Trust, Tuticorin, a private contractor and others on charges of entering into a criminal conspiracy and cheating the port in the execution of major contract works.
Referring to three such contracts, the CBI said the accused abused their official position to extend undue favour to P.I. Jambert Mathuram, managing partner, Immanuel and Co, the contractor. In 2014-16, a ₹13.04 crore contract for widening and strengthening the South Breakwater Approach Road was awarded to the contractor after the last date for the receipt of tender applications was extended. An additional work, not part of the contract, was also awarded even as the contractor did not complete the original work within the stipulated time.
In another contract pertaining to the widening and strengthening of the VOC Port Road from the Thoothukudi Thermal Power Station roundatana, besides the work, additional work was awarded to Immanuel & Co, causing a financial implication of ₹38.88 crore even though the work was not completed in the time agreed upon. In both the cases, port officials did not claim liquidated damages, thereby favouring the contractor, the CBI said in its FIR. The third case involves construction of a truck parking terminal on the port premises. The estimated cost of the project was ₹26.31 crore and proposed to be built under the Sagar Mala Project of the Government of India. The objective of the Central funding was to ensure sustainable development of the population living in coastal economic zones and generation of skilled and semi-skilled employment.
While oil companies, including Indian Oil Corporation Ltd. and Hindustan Petroleum Corporation Ltd., were also stakeholders of the project with a contribution of 30% fund, they did not extend the contribution for reasons not known. Two firms submitted a quote of ₹32.99 crore and ₹36.89 crore respectively for the work, but the port decided on a re-tender since the negotiations following the bids did not result in an acceptable quote.
Cartelisation charge
In the fresh tender, Immanuel & Co quoted ₹23.69 crore and was able to get the contract awarded. The CBI said no other company attended the pre-bid meeting or submitted a quotation, which indicated that M/s Immanuel & Co had, on the basis of the favours shown by the public servants of the port, indulged in cartelization and prevented other contractors from competing in the tender.
Investigators said the company executed sub-standard work by using dredged materials obtained clandestinely with the help of officials for filling up the truck parking terminal. Auctioning of dredged material would have been a source of revenue for the port.
