How was ₹800-cr scam undertaken by Tata firm & India’s largest container port’s ex-staff?
In a shocking revelation, the Central Bureau of Investigation (CBI) has flagged cumulative losses exceeding ₹4,200 crore in a dredging project undertaken by Tata Consulting Engineers, a Tata firm, and the Jawaharlal Nehru Port Trust (JNPT), India’s largest container port. The scam involves former staff of both organizations who allegedly conspired to cause financial losses to the tune of ₹800 crore.
The scam was perpetrated through a series of fraudulent activities, including choosing a deeper vessel draft instead of the approved 14-metre draft, opting for a single rate for dredging different rock types, and undertaking dredging for excess width. These actions led to a staggering loss of ₹1,163 crore, ₹557 crore, and ₹964 crore, respectively.
In an effort to unravel the complexities of this massive scam, this blog post will delve into the details of the fraudulent activities, the consequences of the scam, and the actions being taken by the authorities to bring the culprits to justice.
The Scam Unfolds
The scam was uncovered during the execution of the JNPA Dredging Project, which aimed to deepen and widen the port’s channels to accommodate larger vessels. The project was awarded to a consortium of contractors, including Tata Consulting Engineers, which was responsible for the design and supervision of the project.
According to sources, the former staff of Tata Consulting Engineers and JNPT allegedly conspired to manipulate the project’s specifications to suit their interests. They chose a deeper 15-metre vessel draft instead of the approved 14-metre draft, which resulted in a significant increase in the project’s costs.
Moreover, they opted for a single rate for dredging different rock types, despite knowing that the cost of dredging varied depending on the type of rock. This decision led to an overestimation of the project’s costs, causing a loss of ₹557 crore.
The contractors also undertook dredging for excess width, which resulted in an additional loss of ₹964 crore. This excess dredging was done without the approval of the project authorities, and the contractors failed to account for the excess materials removed during the dredging process.
Consequences of the Scam
The cumulative losses incurred due to the scam are staggering, with a total loss of over ₹4,200 crore. The scam has also led to a significant delay in the completion of the project, which has resulted in additional costs and losses for the port authorities.
The scam has also tarnished the reputation of the Tata firm and JNPT, which are both respected institutions in India. The scam has raised questions about the governance and oversight mechanisms in place at these organizations, and has led to a loss of public trust.
Actions Being Taken
The CBI has taken cognizance of the scam and has launched an investigation into the matter. The agency has summoned several individuals, including former officials of Tata Consulting Engineers and JNPT, for questioning.
The CBI has also seized documents and records related to the project, and is examining the role of various individuals and entities involved in the scam. The agency has also written to the Government of India, seeking its assistance in the investigation.
The JNPT has also taken action against the contractors involved in the scam, and has initiated proceedings to recover the losses incurred due to their fraudulent activities.
Conclusion
The ₹800-crore scam perpetrated by former staff of Tata Consulting Engineers and JNPT is a shocking example of the kind of fraud that can occur in large-scale projects. The scam highlights the need for robust governance and oversight mechanisms in place to prevent such fraudulent activities.
The CBI’s investigation into the scam is a positive step towards bringing the culprits to justice and recovering the losses incurred due to their fraudulent activities. The case also serves as a reminder of the importance of transparency and accountability in large-scale projects.
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