CBI books Lakshadweep MP, his nephew; search premises in Tuna fish export scam

Residences and office premises of the other accused in the case — in Lakshadweep, Delhi and Kozhikode, Kerala — were also searched, CBI sources said.

When contacted, Faizal said, “The CBI sought some documents which have been provided. They searched my home. They have given a nil report on recovery. Let’s see what further action they take. We will see from there.”

Last month, CBI had conducted a joint surprise check exercise along with Vigilance officials of Lakshadweep administration on the UT administration’s different departments, including Lakshadweep Cooperative Marketing Federation (LCMF), Fisheries, Public Works Department, Khadi Board and Cooperative Society, and Animal Husbandry.

According to the probe agency, a few LCMF officials, allegedly in collusion with Faizal, caused losses to the Federation while exporting tuna fish to Colombo-based SRT General Merchants without following requisite tender process and other formalities.

The agency has alleged that the LCMF procured a huge amount of tuna fish from local fishermen under the influence of Faizal. The fish so procured was exported by LCMF to SRT General Merchants through another exporter but the latter did not make payments to LCMF.

The CBI’s case is that LCMF procured fish and sold it to SRT under Faizal’s influence. The MP’s nephew, Abdul Razzak, is an office-bearer in the Lankan firm.

The others named as accused in the FIR include SRT General Merchants and LCMF managing director M P Anwar.

Faizal had earlier denied any corruption in the matter. “The fish was sold to SRT since the buyers had offered a very good price,” he had said. “Fishermen earlier did not get the right benefits, as middlemen made all the money. I had even spoken in Parliament (in favour of) purchasing through the cooperative marketing federation. The federation identified a buyer in Lanka and he offered very good rates.”

But, Faizal had said, the buyer backed out later due to intervention by middlemen in Thoothukudi, Tamil Nadu. “As a result, 250 MT (metric tonnes) of fish was left with the federation to dispose of,” the MP had said. “Then there was a local auction and Thuthookudi middlemen bought it. There is no corruption — let them (CBI) inquire about it.”

According to CBI, during scrutiny of documents recovered in the surprise checks, it emerged that in 2016-17, “under false assurance” of Faizal, SRT General Merchants Importers & Exporters was “willing to purchase Massmeen (dry tuna fish) at higher than prevailing rate”. The LCMF thereafter decided to procure Massmeen from fishermen, it said.

Subsequently, about 287 MT of the fish was procured through respective cooperative societies of the Lakshadweep islands. During this process, LCMF assured fishermen that they will be paid higher than the rates prevailing then, CBI has claimed.

The agency’s FIR stated: “The matter was proceeded by Mr M P Anwar, then Managing Director, LCMF, without floating any tender and merely relying on the assurance of Mohd. Faizal…. It was also revealed that Mohd Abdul Razik Thangal, …(a) relative of Mohd. Faizal PP, …was representative of M/s SRT, Colombo, in this matter. Mohd. Faizal PP…made all arrangements and was instrumental in fixing the Massmeen exporter, M/s Accelerated Freeze Drying Company (AFDC), Cochin, Kerala, through LCMF Ltd.”

Subsequently, LCMF entered into an agreement with M/s AFDC, an export agency based in Kerala’s Kochi, in which terms of reference for export of Massmeen were agreed upon, the FIR stated.

However, the project in question did not materialise due to the refusal of AFDC since it did not receive Rs 60 lakh for the first consignment of 10 MT (fish) exported to the Lankan company, according to the agency. “Due to the above…it (AFDC) did not continue lifting further Massmeen through LCMF, as per the agreement,” the FIR stated.

According to CBI, the fish stuck with LCMF had to be eventually auctioned, and it fetched only Rs 5.72 crore, as against the promised amount of Rs 14.65 crore, leading to a loss of more than Rs 9 crore.