The CBI has booked the then Chairman-cum-Managing Director (CMD) of the Hindustan Steelworks Construction Limited (HSCL) and eight others for alleged irregularities in the award of contract for the Trade Facilitation Centre and Crafts Museum (TFC&CM) project in Varanasi.
Among those named in the FIR are Moyukh Bhaduri, former CMD of HSCL, its general manager (engineering) Himadri Samaddar, and advisor (marketing and contract) D.C. Bandopadhyay; Anant Saxena, managing director of Zillion Infra Projects Private Limited; and managing director Ajay Kumar and director N. Krishna Rao of Vijay Nirman Co. Private Limited.
G.R.K. Reddy of NCC Limited; Vikas Jalan, managing director of Trans Metalite India Private Limited; and one Dhiraj Kanchal have also been named.
Based on source information, the CBI had earlier initiated a preliminary enquiry into the allegations. As it turned out, the Ministry of Textiles had appointed the Export Promotion Council for Handicraft (EPCH) as the implementing agency for the project.
In April 2015, the EPCH initiated a proposal for engaging the HSCL as the project management service provider. The next month, the EPCH expressed its inability to continue further as the implementing agency due to the technical nature of work. Accordingly, the job was given to the National Handloom Development Corporation (NHDC) and the HSCL was appointed as the project management service provider.
It is alleged that Mr. Jalan had demanded ₹2.25 crore through Mr. Saxena to facilitate the selection of HSCL as the service provider. In June 2015, ₹25 lakh was paid in two instalments. After its selection, the HSCL published the expression of interest for awarding the construction work. Of the eight bidders, four qualified for technical bid. The FIR identified them as NCC United, Vijay Nirman, HCC United and Tata Projects.
All the qualified bidders, except Tata Projects, participated in the financial bid. Mr. Saxena, allegedly on behalf of Mr. Bhaduri, demanded ₹1 crore for awarding the work to Vijay Nirman. An illegal gratification of 7.5% of the project cost was also sought upon the award of work.
The first instalment of ₹50 lakh was paid through the account of Hyderabad-based Madhuri Constructions, to that of Zillion Infra Projects. The money was diverted further to Mr. Kanchal, the FIR alleged.
Subsequently, as alleged, the tender proceedings were rigged to facilitate the contract to Vijay Nirman, which emerged as the lead contender. The HSCL then sought an approval from NHDC to award the work to Vijay Nirman.
However, on the Integrated Finance Wing’s advice and subsequent clarification from the Ministry of Steel, the project managing service provider was changed from HSCL to NBCC. Thereafter, the work site was handed over to NBCC in September 2015 and the tender process was cancelled the next month.