KPT: HC poser to Centre over leases

Chief Justice Manmohan J said in his written order: “We direct the Secretary of the Department to file an affidavit clarifying under what circumstances the letter dated July 13,2010 was issued by Rakesh Srivastava,Joint Secretary (Ports/Admn.),Ministry of Shipping — and the letter dated July 27,2010,whereby R Srinivasa Naik,Director (Port Operations),per se communicated to the Chairman,Kandla Port Trust about the approval of the competent authority to renew these leases.”

The alleged scam involves 16,000 acres of land owned by KPT,which has been given on lease to a handful of salt companies at throwaway prices without inviting tenders.

Neeraj Kishan Kaul,senior counsel representing the Chairman,KPT submitted he is not in a position to say what steps have been taken by his client.

The Delhi High Court ordered Additional Solicitor General A S Chandhiok to take prompt steps to file an affidavit of the Secretary of the Government of India,Ministry of Shipping and Kaul,and clarify the position.

The HC’s order came after Prashant Bhushan from the counsel for Centre of Public Interest Litigation filed a petition seeking auction of nearly 41 salt pan leases on 16,000 acres of KPT land. According to the PIL,neither were the leases on these plots revised nor was any auction undertaken for years together,incurring loss of several crores to the exchequer.

Bhushan brought to the notice of the HC that in violation of its orders dated September 9,2009; December 18,2009; and March 11,2010,the joint secretary of the Ministry of Shipping issued instructions to renew the lease to M/s Friends Salt Works and Allied Industries at Kandla without an auction.

Bhushan also drew the court’s attention to the communique issued by R Srinivasa Naik,Director (Port Operations) to the KPT chairman to renew the leases in 37 cases.

In its affidavit filed with the Delhi High Court,KPT has also admitted that leases for 37 of the 41 contracts had expired in 2004 and for four decades prior to the expiry,the renewals were done without any auction.

The irregularities surfaced after Manoranjan Kumar,the then Deputy Chairman and Chief Vigilance Officer of KPT sent a report to the Ministry of Shipping and the Central Vigilance Commission (CVC). But he was instead transferred along with three other accused.

The Central Administrative Tribunal (CAT) termed the ministry’s action “mala fide” and asked the ministry to pay

a compensation of Rs 25,000

to Kumar. Like CAT,the

Delhi High Court too indicted CVC for not acting on Kumar’s report.