India

Rs 80-cr losscCBI books 13 ONGC officials

PNS

The CBI has booked 13 senior serving and retired officials of the ONGC including former Executive Director D G Sanyal, Director (Onshore) Ashok Verma,for alleged irregularities in giving a contract to a private company — Deep Industries — for supplying gas dehyrdation units for its Rajahmundry plant in Andhra Pradesh, causing a loss to the tune of Rs 80 crore. They have been accused of abusing their official position in giving a contract worth Rs 312 crore given to Deep Industries limited, an accused in the case, for supplying the gas dehyrdation units (GDUs), causing a loss of Rs 80 crores to ONGC.

Top sources told The Pioneer that ONGC's Deputy General Manager (Vigilance) S Suresh Kumar wrote to the CBI on April 12, 2018, alleging that several senior (serving and retired) officials in connivance with a private firm M/s Deep Industries entered into a criminal conspiracy and awarded the contract to Deep Industries by overlooking the guidelines of the public sector undertaking and the fact that the company was ineligible due to technical deficiencies. The said ONGC officials, in the name of urgency, awarded the tender to Deep Industries dishonestly ignoring the interest of ONGC.

Gas Dehydration Unit is a system for the removal of water from natural gas and natural gas liquids (NGl). It is the most common and economical means of water removal from these streams. 

The CBI officials said that it was alleged that Deep Industries falsely claimed that the 'C6+ analysis' would not be sufficient to meet PNGRB guidelines. This led to increase in financial commitment of ONGC from Rs 291 crore to Rs 312 crores on account of increase in gas analysis.  Interestingly, DGM (F&A) S Ramakrishna concured the proposal of Rs 312.57 crore without putting it before the executive committee for evaluation.

"It is alleged that Arup Ratan Das, then DGM made working papers for hiring and owning of GDU to be installed at five units in phase -I and prepared the estimates on singal quotation as against the requirement of 3 budgetary quotations. The lone budgetary quotation was from Deep Industries who submitted as estimated cost of Rs 219 crore for hiring of GDUs for three years.  He made a proposal for administrative approval indicating owning cost at Rs 290 crores and hiring cost at Rs 230 crores. The proposal was put up before DG Sanyal then ED, PV Sateesh Kumar the then GM(P),  S Ramakrishna, then DGM (F&A) and Murali then DGM (MM) at Rajamundry. The proposal was forwarded to Ashok Varma then director (onshore) who accorded approval of expenditure for Rs 219 crore though he was empowered to accord administrative approval for cases only upto Rs 200 crore," the CBI FIR said.

On May 17 this year, the CBI has arrested a deputy general manager of the ONGC, AK Singh of Shivasagar, Assam, after catching him red handed receiving bribe.