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This is an archive article published on March 11, 1999

CBI probe into MSEB-Nairsons ‘nexus’ sought

NAGPUR, March 10: Dr Govind Verma, Executive Member of the Maharashtra Pradesh Congress Committee (MPCC), has demanded a CBI inquiry into...

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NAGPUR, March 10: Dr Govind Verma, Executive Member of the Maharashtra Pradesh Congress Committee (MPCC), has demanded a CBI inquiry into the alleged nexus between the Maharashtra State Electricity Board (MSEB) and Nairsons organisation in the city, which has resulted in the Board losing crores of rupees.

Addressing a press conference here on Tuesday, Verma said there should be a thorough investigation to find out how the Nairs had turned millionaires overnight. Verma alleged that the family could have never achieved this success if the MSEB had not provided undue favours to it, through contracts for protection and transport of coal.

The MPCC member felt that the Nair family may own the Orange City Hospital today but not so long ago, they were very poor. The MSEB contracts seem to have come as a boon to them, he charged. The owners of Nairsons are now trustees of the Wardha-Sawangi private medical college and directors of various city organisations, said Verma.

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Verma charged the MSEB with beinghand-in-glove with the Nairs in several corrupt deals. Exorbitant rates are being paid to Nairsons for protecting MSEB coal and its transport. Verma claimed that when the Nairsons were first given the coal contract in 1989-90, the rate was fixed at 99 paise per tonne of coal. In 1993-94, this rate was hiked to Rs 4 per tonne and in 1997, the MSEB paid Rs 7 per tonne for coal transport by rail and as much as Rs 18 per tonne by road. As a result of these contracts, the MSEB allowed Nairsons to earn crores of rupees, alleged Verma.

As if this was not enough, the MSEB is going to award the new two-year 440 lakh tonnes coal protection and transport contract to the company for the year 1999, claimed Verma. The contract would be worth Rs 18 crores. Verma opined that it was strange that while in other states, similar contracts for coal transport were given at a rate of less than a rupee, the MSEB has been so liberal in doling out money to just one family. According to him, this was a clear case offavouritism.

Verma concluded that as a result of the MSEB largesse, it was incurring massive losses. Public money is being wasted by the MSEB to please a single family, he alleged.

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