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Journalism of Courage
MUMBAI, MARCH 22: Close on the heels of the Girish Vyas case that rattled the Sena-BJP alliance government, the Bombay High Court today directed a CBI probe into the contract for retrofitting turbines awarded by the Maharashtra State Electricity Board (MSEB) to Powerplant Performance Improvement Ltd (PPIL). PPIL is a joint venture of Bharat Heavy Electricals Ltd (BHEL) and Siemens AG. The order comes as a major embarrassment for Deputy Chief Minister Gopinath Munde who also holds the energy portfolio, since the court has not ruled out the possibility of `extraneous considerations’ in granting the contract.
As per the court order, a “CBI officer of known integrity” will “go into the circumstances” that led to the granting of the controversial contract; examine “in detail if any extraneous considerations” were involved in the granting of the contract, and “if so, investigate the persons who are responsible for this”. The report has to be submitted to the court in a sealed cover within two months. Withtoday’s order, the division bench has almost taken away the powers of the MSEB in the fresh bids that will have to be awarded for the same work. In its ruling, the bench ordered that both — the drawing up of terms and conditions for calling for the tenders, as well as the evaluation of the tenders — will be done by the Power Finance Corporation (PFC) for which MSEB will have to approach PFC. MSEB officials will only be assisting PFC in this matter. Today’s development is one of the high points in the year-long court proceedings in the public interest litigation filed by sitting Congress MLA, Digvijay Khanwilkar, and involves, as respondents, both the state government and Munde.
Khanwilkar had challenged the decision of the MSEB taken on January 28, 1998 to award a contract of retrofitting turbines in all its 15 thermal power units to PPIL, though the tenders were called for work on only one unit, the Koradi thermal power station. The cost of the tender was Rs 187 crore.Subsequently, in February this year,PPIL declared its intention towithdraw from the contract. MSEB approached the court last week with this information and pleaded that the petition be disposed of. However, the division bench of the Chief Justice Y K Sabharwal and Justice S Radhakrishnan, “considering the manner in which the decision was taken” refused to close the case.
Ordering an investigation into the contract today, the bench also directed the CBI to look into the losses suffered by MSEB in granting as well as cancelling the contract. In an affidavit, MSEB had said that a total of Rs 5.8 crore had been advanced to PPIL and PPIL would be returning the amount with interest. Counsel for MSEB, Atul Rajadhyaksha said that the petition was motivated. Reading out from the affidavits of the petitioner, in which Khanwilkar has alleged that the deputy CM had reneged on his duty as a watchdog of his ministry, he alleged that the MLA was targetting the deputy CM. “All I want to say is this, that MSEB (should) not be made an instrument,” hepleaded.
However, the Chief Justice Y K Sabharwal did not accept this plea. “Not everything made out in the petition are argued out in court,” Justice Sabharwal countered. Stressing on the need for transparency in dealings of public sector organisations, Chief Justice Y K Sabharwal said “All pros and cons are required to be examined in the public interest involved in the grant of such contracts.”
Interestingly, the contract was awarded to PPIL despite stiff opposition from the technical members of the board, including the member secretary, G S Gill who had asked that the item be postponed. The then MSEB chairman, P L Gajralwar was able to bulldoze the item through, with the help of the three non-technical political nominees on the board-Sudha Mandlik, Ashok Samant and Anil Rathod. The item was passed on a majority of four votes in the seven member board.
Munde on the backfoot
Gopinath Munde becomes the first minister in this cabinet to have a CBI probe ordered by the High Court into acorporation under his charge.Not only that, the court has said MSEB cannot decide on tenders and should handover the job to PFC. A clear indication that it has no confidence in MSEB’s impartiality in awarding tenders.
Politically, too, Munde will be on the backfoot as this is the first serious case involving alleged corruption facing the BJP and to that extent it cannot take a moral position vis a vis the Shiv Sena.
