Mahabir’s maha Trick
By Rajib Maitra
The social networking space is abuzz with pseudo campaigners clamoring against corruption. In the din that they have created, the wily and the wrong mongers are out quietly doing their thing, colluding and corrupting, “winning” friends and “influencing” those that matter. Rajib Moitra digs deep into the muck and has this remarkable tell to tale of malefic intentions mergers of malicious intent.
In the month of August 2007, a written complaint was received by Coal India Vigilance Department from one Binod Agarwal, purportedly a businessman from Assam, alleging manipulation and corruption in coal linkage of Ms. S.K.J. Coke Limited (formerly Mahabir Coke Industries) from North Eastern Coalfields (NEC), Assam.
Upon receipt, the complaint was forwarded by the Vigilance Department to the Marketing Division of Coal India Limited (CIL) for examination and comments. Prima facie examination of the complaint raised doubts about the authenticity of the unit and Shri, K. Ranganath, the then Director Marketing, recommended that coal supply to the unit be kept in abeyance till the entire matter was investigated. On basis of this, Shri N. C. Jha, the then Director (Technical) CIL and Director-in-Charge of NEC, advised Chief General Manager, NEC to take necessary action as recommended by Director (Marketing). No further action was taken by the Vigilance department on the clarifications submitted by Sales & Marketing department, till October 2008.
Documents available with Core Sector reveal that Coal India had agreed to supply low ash coal from NEC to Mahabir Coke Industries in September 1989, as a “deemed linked consumer”, at prices notified by the Government of India. The consumer was not issued any formal linkage by the non-core sector linkage committee. However, notifications of Liberalized Sales Scheme by Government of India empowered CIL to fix the price of coal in respect of non-linked consumers. Following this scheme, CIL determined the price of coal for Mahabir Coke Industries accordingly. Mahabir Coke Industries objected to such determination of price and filed a writ petition in 1997 against such action and obtained a stay order on charging higher prices by CIL during the pendency of the proceeding.
This interim order was vacated by Hon. Calcutta High Court, in September 2001, which passed an order declaring that the price changed by CIL as valid. After protracted litigation, in January 2007, High Court at Calcutta directed Mahabir Coke Industries to pay the difference in price of coal supplied between April 1997 and August 2001 along with interest. A Special Leave Petition (SLP) was filed by Mahabir Coke Industries against the order of Calcutta High Court, which was dismissed by Supreme Court in December 2009.
As a fall out of the above order, CIL demanded Rs. 8,78,80,000 as principal and Rs. 6,74,40,000 as interest, totaling Rs. 13,53,20,000. The entire matter is still under litigation. It is learnt that Mahabir Coke Industries deposited Rs. 2 cr. only, as bank guarantee, which is surprisingly yet to be revoked by CIL.
The complaint filed by Binod Agarwal gains credence, as against this back drop of having huge financial liability towards CIL, Mahabir Coke Industries, a small partnership unit, merged with SKJ Coke Limited, a much larger private limited company, which did not have any coal linkage. This merger was illegally vetted by one C. P. Sinha, the then Superintendent Engineer (CP) working in Sales & Marketing discipline, without any formal approval of CIL management. It is not very difficult to understand that this merger was a premeditated move on the part of the two units, perhaps even aided by colluding officials of CIL and NEC, to avoid paying the dues of CIL. The company did not stop there. M/S SKJ Industries which was hitherto unknown to Coal Indian Ltd., was allowed to draw the coal linked to Mahabir Coke Industries. The CIL management---- local as well as in the Corporate Head Quarter kept their eyes closed.
Mr. Hansraj Jain, the Managing Partner of Mahabir Coke Industries, in his affidavit to CIL, dated 3rd August 2005, stated that Mahabir Coke Industries intended to change its name to SKJ Coke Ltd. However, as per the deed of the merger dated 18th November 2004, submitted to the CIL, indicated that Mahabir Coke Industries intended to merge into SKJ Coke Industries. The criteria of change of name or merger are clearly defined under section 23 of Company Act 1956. Mr. C. P. Sinha (Superintending Engineer (SE), CIL, in his letter dated 8th August 2005, stated that it was a case of mere change of name. However, our inquiry revealed that SKJ Coke Ltd existed as a separate entity earlier. Whether it was a case of merger or change of name, transfer of coal linkage is not permitted under governing rule of Coal India Ltd. Coal linkage, if at all given to Mahabir Coke Industries was given for the coal burning equipment and not the unit per se. In this case, the unit of Mahabir Coke Industries seems to have been dismantled totally and only the management of both the units merged.
A matter of serious concern and perhaps some sinister connotation as well, is that this complaint of Binod Agarwal on which the CIL Vigilance Department had remained silent for quite some time, was ultimately handed over to B. N. Mishra, the present Technical Secretary of CVO. Predictably Mr. Mishra did not investigate into the complaint religiously and prepared a report concluding that the complaint was baseless. Mr. Mishra submitted the report with letter no. CIL/VIG/VD-312/1169 dated December 24, 2008. Surprisingly, three days prior to the official receipt of this letter, a note was moved by Area Sales Manager in Assam at Margeritta on December 27, 2008. Moreover, this note for resumption of supply of coal was put up before the Director (Technical), CIL, by virtue of being Director-in-charge of NEC.
The collusion of CIL officials in the matter becomes apparent by the speed with which supply of coal was resumed. Mr. Mishra’s letter dated December 24, 2008 was officially received by NEC, Margherita on December 30, 2008. Yet a note-sheet for resumption of supplies was moved by Area Sales Manager on December 27, 2008 and the same was put up before the Director-in-Charge, NEC on December 30, 2008. In that letter the ASM noted, “M/S SKJ Coke industries Ltd is an erstwhile linked unit at NEC in non-core sector having at MPQ 30,118.8 tonne per annum. While the new coal distribution policy was being implemented other similarly, placed units were invited for concluding FSA but supplies to M/S SKJ Coke Industries Ltd was kept on hold from Dec, 2007 based on certain complaint received at CIL against the unit. The supply to M/S SKJ Coke industries Ltd was suspended by the competent authority pending inquiry, with a directive to inquire into the complaint. The inquiry now being completed, CIL Vigilance vide the letter no. CIL/VIG/VD-312/1169 dated December 24, 2008 has intimated about the closure of the case. In view of the above NEC needs to resume the supplies to the unit by concluding Fuel Supply Agreement (FSA) as per the NCDP at the 75% of the then MPQ ie: 22589.10 tons…..” In a subsequent letter dated 17th February, 2009 written by the Area Sales Manager NEC, Mr N. C. Jha, Director Technical (CIL) noted, “Supply may be resumed with FSA as per policy.” The official procedure of routing the matter through the Director Marketing CIL was bypassed. The point to be noted here is that at that point of time, the post of Director Marketing was vacant and was being looked after by the then Chairman, Mr. Partha S Bhattacharyya.
Anyway, the matter did not stop there. And violating all norms, the coal linkage was subsequently converted into a FSA between CIL and the party. Thus it is a clear case of maneuvering and conspiracy amongst the party and various concerned officials.
Incidentally, upon received of a complaint, CBI initially conducted a “Preliminary Enquiry” under case no PC/03/2010. In the course of the preliminary enquiry CBI found certain evidence to start two separate “Regular Criminal Investigation” case vide no. RC/05/2010 & RC/06/2010 against Mr. B. N. Mishra and the CVO (CIL) along with other officials of CIL as accused officers.
It is alleged that by the use of some super natural powers, the names of the CVC and that of Mishras were dropped from the RC and the case was transferred from the Anti Corruption Wing to the less effective Economic Offence Wings of CBI.
Is anybody listening? More importantly, does anybody even care? Young India, it is being said, is obsessed with corruption but alas, it’s activism is restricted only to pasting badges of “I love Anna” in Facebook.
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