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2. 8216;8216;In September 2001, the Board of Directors approved the purchase of a suitable accommodation for the CMD at an estimated cost of Rs 3 to 4 crore.8217;8217; The decision was in keeping with Banerjee8217;s terms of appointment of June 2002, which clearly states that 8216;8216;wherever the PSE has built residential flats in the industrial township or purchased residential flats in the cities, arrangements would be made by the PSE to provide a suitable residential accommodation to him.8217;8217;

3. Banerjee did not select the premises; in fact, public tenders were twice invited in October and December 2001. 8216;8216;A committee comprising senior company officers negotiated with the Trust that owned the premises 8212; C1/10, SDA, with ground and first floors and a barsati on the terrace 8212; and recommended the purchase at a cost of Rs 3.27 crores in its meeting held on March 11, 2002.8217;8217;

4. 8216;8216;The purchase process was subsequently scrutinised by the Government Auditors in June 2002 and twice by the Statutory Auditors of the company and it was found to be in order.8217;8217;

5. The Board also approved the creation of a guest house on the ground floor, which is used by all senior officers of GAIL in the rank of DGM and above as well as by experts and consultants from India and abroad. As many as 30-40 guests stay here every month, savings GAIL Rs 30 lakh annually.

6. After the purchase, GAIL spent Rs 77 lakhs on renovation, security, plumbing, woodwork and furnishing the guest house.

8216;8216;There are no DPE guidelines for providing airconditioners at the residence of Directors and the CMD. It is a matter of convention and the airconditioners, which have been installed in the premises, are distributed between the guest house, the business centre under the guest house and residence of the CMD in line with the prevailing convention.8217;8217;

7. Contrary to the report, the area is not 50 per cent more than what is permissible by the Department of Public Enterprises. DPE guidelines of 1992 which were anyway repealed five years later specify the ceiling of 1,900 sq ft for the Chairman and Functional Directors 8216;8216;for leased accommodation8217;8217; only and 8216;8216;not for owned premises8217;8217;.

8216;8216;The barsati on the terrace is completely detached from the residence, which is on the first floor and can be accessed by a common staircase. After renovation, this room is an extension of the guesthouse operating as a business centre for the purposes of holding meetings, presentations and negotiations with business partners and for the use of those experts and consultants residing in the guesthouse.8217;8217;

8. In general, the 8216;8216;institution of Office at the Residence8217;8217; for members of the board, Executive Directors and General Managers below the board level, is widely prevalent in the public sector 8212; it has been in GAIL since 1987 or earlier. It is important to understand the distinction between the use of a room in the residence as an office with furniture and fixtures provided by the company and 8216;office accommodation8230; at PSE expense.8217;

Amitav Ranjan replies:

According to records of the board meeting, approval was for the 8216;8216;purchase of a suitable accommodation for CMD.8217;8217; No mention was made of a guest house.

As for the statement that there was no suitable guest house, GAIL has a three-bedroom guest house at E 81, Asiad Games Village where Banerjee and his family stayed before shifting to the present residence.

GAIL says that Banerjee did not select the premises. However, according to official records, GAIL first invited offers and prepared a shortlist. But 8216;8216;keeping in view the preferences of the CMD, none of the houses was found to be suitable.8217;8217; It was then that a fresh ad was placed.

GAIL says that the purchase process was scrutinised by government auditors in June 2002 and twice by company8217;s statutory auditors. The report in The Indian Express raised no questions regarding the purchase process.

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