The CBI on Wednesday registered a case against arms dealer Sanjay Bhandari in a corruption case for allegedly receiving “consultancy” fee to the tune of USD 50 lakh from South Korean firm Samsung Engineering Company Ltd for allegedly influencing award of Dual Fuel Cracker Unit of ONGC Petro Additions Ltd (OpaL) at Dahej in Gujarat.
Besides Samsung, the agency has also named Bhandari-promoted Santech International, FZC, UAE, Foster Wheeler Energy Ltd., UK, then senior manager of SECL Hong NamKoong and unknown officials of ONGC/OPaL and unknown others in a case of graft, cheating, criminal conspiracy and criminal misconduct.
Sanjay Bhandari, Director of Santech international, UAE allegedly acted in criminal conspiracy with other accused and in furtherance of the said conspiracy entered into a consultancy agreement with SECL in violation of the contract agreement between OPaL and SECL, CBI officials said.
Bhandari allegedly obtained USD 49,99,969 (approximately) from the South Korean major in the overseas bank account of Santech International in order to induce unknown public servants to show alleged undue favour to the consortium of SECL in the award of contract of DFCU project at Dahej, Gujarat, they said.
It was further alleged that the said agreement was relating to the consultancy services to be provided by Santech International FZC to SECL for obtaining the DFCU contract.
It was also alleged that Samsung had to pay 10 million US Dollars as coordination and consulting fee, with 50 per cent payable within 30 days of receipt of advance payment from ONGC and the remaining 50 per cent was to be paid within six months of the receipt of payment from ONGC.
But on the date of agreement on October 30, 2007, the ONGC/OPaL Board did not approv the advance payment to be released to the tenderer and the tender document (BEC) did not have the provisions for making advance payment.
However, the OPaL Board in its 5th meeting held on December 17, 2007 allegedly approved the provision of advance and linked the payments to the progress of the work.
The interest free advance payment was made in contravention of CVC circular and CAG in its report has also raised objection on the same, the CBI said.
It was further alleged that the tender for DFCU project was floated on April 20, 2007 and two consortiums-Germany and South Korea- based private company and USA and India-based private company submitted their bids for the project.
The contract was awarded to the consortium of South Korea and Germany-based company at their quoted lump sum price on the basis of higher Net present value calculated by UK based company.
The consortium of the USA-based company challenged the selection. But the representation was turned down and the tender of DFCU was finally awarded to the consortium of South Korea and Germany-based company for lump sum cost of Rs 6744.32 crore and the contract was signed on February 10, 2009.