IAS officer spins trouble; faces probe in Rs 3-cr powerloom scam

The inquiry, initiated under Rule 8 of the All India Services (Discipline and Appeal) Rules, 1969, on July 28, 1998, could culminate in a courtroom trial and jeopardise the IAS officer’s 33-year career as well. Yet, Appalwar, who has been given a fortnight to reply to the charges, dismisses the inquiry as routine. “I totally deny all the charges. Theentire case is baseless. The Bombay High Court has ruled thrice that there is no corruption in the case,” he told The Indian Express.

But a trite denial will not get him off the hook. Appalwar still has to reply to eight serious charges levelled against him that reads as follows:

1). Appalwar had formulated a scheme to disburse powerlooms to backward class candidates and forwarded a report to the National Scheduled Casts/Scheduled Tribes Finance and Development Corporation Limited, New Delhi; the National Backward Class Finance Development Corporation, New Delhi; the National Minorities Development Finance Corporation, New Delhi. This was formulated in connivance with a powerloom manufacturer without seeking expert advice or conducting a survey regarding the project’s viability. Also, cost inputs were not properly assessed. Appalwar deliberately neglected his duties with malafide intent for the benefit of a private party at the cost of the MPBCDC.

2). Appalwar made a false statement regardingsupply of raw material and purchasing finished goods by the Maharashtra Textile Corporation in the project report sent to the three aforementioned corporations. Withholding such information played a vital role in getting the project approved by the central-level corporations. Appalwar thus deliberately and with malafide intent showed utter disgrace to his legitimate duties.

3). On receipt of the funds from the three corporations, Appalwar placed orders for purchase of powerlooms. Crores of rupees were paid to the manufacturer without identifying the beneficiaries to whom the powerlooms so purchased were to be distributed. He flouted the requirements of the Manual of Office Procedure for purchase of Stores by Government Departments. Appalwar has thus deliberately and with malafide intent allowed a private individual to earn huge financial benefits and jeopardised the interest of the MPBCDC.

4). While calling for tenders for purchase of the powerlooms, Appalwar restricted the competition so that apredetermined supplier secured the contract. He thus disregarded standing orders in calling tenders with the malafide intention of helping a private manufacturer.

5). Appalwar deliberately and with malafide intent allowed the supplier to reap undue financial benefits, violated norms and adopted a faulty procedure while calling for tenders.

6). Appalwar had purchased powerlooms from M/s Shivangi Industries, Bharuch, for its powerloom project and paid more than Rs 8 crore to the said company without obtaining adequate and proper collateral from the said company.

7). Appalwar, while dealing with tenders invited for purchasing the powerlooms, disregarded the prescribed procedure by holding negotiations with only one tenderer.

8). Appalwar placed an order on February 20, 1995, with M/s Shivangi Industries, Bharuch, to purchase 600 powerlooms for distribution in Amaravati district only. Thereafter, without calling for fresh tenders, he purchased powerlooms from the same company for distribution in otherparts of the state.

He paid Rs 5.09 crore to the said company for the same till May 1995. Appalwar thus behaved in a manner unbecoming of a member of the IAS and contravened the provisions of the All India Services (Conduct) Rules, 1968.

The state government plans to summon eight witnesses from different departments state-wide including an additional commissioner of police and a deputy inspector general of police attached to the Anti Corruption Bureau, Mumbai. The testimonies of these witnesses will decide the fate of the IAS officer.