The Bombay High Court is likely to hear early next week a criminal public interest litigation seeking it to direct the CBI to register a case under IPC and Prevention of Corruption Act against Messrs. Reliance Infra for alleged irregularities in the Pune-Satara toll collection project.
The petitioners – Advocate Pravin Wategaonkar and Sanjay Shirodkar –had moved a praecipe before the high court seeking an urgent hearing of their PIL on September 20 (Monday), following the Maharashtra Government’s failure to permit the CBI to register a case against M/s Reliance Infra in the Pune-Satara toll collection project.
In their petition, Wategaonkar and Shirodkar stated that on October 1, 2010, a six-laning contract of the National Highway section of Pune-Satara with Toll collection rights was awarded to M/s. Reliance Infra – which formed a SPV M/S Pune Satara Toll Road Pvt Ltd for the project -- for 24 years including construction period of 2.5 yrs/ 30 months.
The NHAI rejected a pre-bid request for a longer construction period of 3.5 yrs 42 months. M/s. Reliance Infra formed SPV M/S Pune Satara Toll Road Pvt Ltd for the project. Six laning construction remained incomplete about ten years later in January 2020, about the time a complaint was filed with CBI.Earlier, in December 2013, the Centre had amended rules and provided that no user fee would be levied for the delayed period between the date of completion as per the agreement entered into with the concessionaire and the date of actual completion.
“As per the contract, Contractor’s equity, bank loans and fees collected were to be used strictly in order laid down in the contract essentially for project related purposes. For use of funds in any other order or purpose, prior written permission of NHAI was required,” the petitioners told the court.
As per agreement, Pune-Satara six-laning construction was to be completed by March 2013. As per a government circular, NHAI has authority to extend completion date by entering into supplementary agreement with Contractor within 28 days of date of completion as per agreement.The petitioners alleged in their petition that after CAG reported fund diversion to Mutual Fund investments by Contractor in April 2014, NHAI belatedly and in violation of its own policy circular, entered into a supplementary contract with Contractor in October 2014 for extension of Construction period till December 2015. Thereafter there is no supplementary contract for further extension.
User fee collection on the said Highway since January 1, 2014 and more particularly since January 1, 2016, is ultra vires of the rules in the matter and amounts to cheating vehicle owners using the said road.
Among other things, the petitioners have alleged that the contractor M/s. Reliance Infra- P S Toll Road Pvt Ltd had diverted about Rs. 225 crore to mutual fund investments without focusing on Construction and without written permission of NHAI, which attracted sections 405 and 409 IPC for alleged criminal breach of trust
The petitioners had filed a complaint with CBI in January 2020. In September 2020, after easing of lockdown, CBI Pune Office recorded verification statements of the petitioners. However in the meantime, the Maharashtra government cancelled a blanket permission CBI enjoyed to register cases in Maharashtra.
On its part, the CBI has written a letter to the Maharashtra government seeking consent to register a case against M/s. Reliance Infra formed SPV M/S Pune Satara Toll Road Pvt Ltd. However, the Maharashtra government has not granted permission to the CBI register a case against the accused SPV.