India's rail freight corridors boss in corruption probe
Multibillion rand contracts were 'handed out without approval'
The MD of the Freight Corridor Corporation of India is at the centre of a corruption investigation, it has been revealed.
The rail freight corridors project is an initiative aimed at connecting India’s busiest freight lanes from Mumbai to Delhi in the west and from Punjab to West Bengal in the east.
Freight Corridor Corporation MD, VK Kaul, is reported to be under investigation after India’s Central Vigilance Commission (CVC) allegedly found “serious irregularities” in contracts he had awarded outside companies.
Sources in the Railway Ministry confirmed the CVC has launched an investigation into three of the most expensive contracts awarded by Kaul
The contracts are the Rs6 billion (US$130 million) issued to Soma Enterprise in December 2008, for design and construction of 54 major bridges in the Western Freight Corridor; Rs7.81 billion awarded to BSCPL Infrastructure in December 2008 for the design and construction of a dedicated freight corridor in Bihar and Uttar Pradesh; and Rs13.38 billion award of a consultancy contract for the Eastern Freight Corridor to a consortium of international consulting firms in September 2008 for a signalling and telecoms system.
After a detailed investigation, the CVC found that Kaul was given powers to conduct negotiations and accept tenders without any upper ceiling. High-value contracts were awarded by Kaul without board meetings and approvals.
The CVC’s report has been sent to India’s Railway ministry.
The rail freight corridors project is an initiative aimed at connecting India’s busiest freight lanes from Mumbai to Delhi in the west and from Punjab to West Bengal in the east.
Freight Corridor Corporation MD, VK Kaul, is reported to be under investigation after India’s Central Vigilance Commission (CVC) allegedly found “serious irregularities” in contracts he had awarded outside companies.
Sources in the Railway Ministry confirmed the CVC has launched an investigation into three of the most expensive contracts awarded by Kaul
The contracts are the Rs6 billion (US$130 million) issued to Soma Enterprise in December 2008, for design and construction of 54 major bridges in the Western Freight Corridor; Rs7.81 billion awarded to BSCPL Infrastructure in December 2008 for the design and construction of a dedicated freight corridor in Bihar and Uttar Pradesh; and Rs13.38 billion award of a consultancy contract for the Eastern Freight Corridor to a consortium of international consulting firms in September 2008 for a signalling and telecoms system.
After a detailed investigation, the CVC found that Kaul was given powers to conduct negotiations and accept tenders without any upper ceiling. High-value contracts were awarded by Kaul without board meetings and approvals.
The CVC’s report has been sent to India’s Railway ministry.
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