CBI booked Adani Enterprises, Ex-NCCF officials for 'irregularities' in APGENCO coal tender

Hyderabad: The Central Bureau of Investigation,has booked Ex-Chairman Virender Singh and MD G P Gupta of National Coorperative Consumers Federation of India and M/s Adani Enterprises, for criminal misconduct and irregularities in the supply of coal to Andhra Pradesh Power Generation Corporation in 2010.

A decade after the tender was called for supply of coal to APGENCO, the CBI sleuths, on January 15th 2020, booked four people under section 120 -B r/w 420 ( Criminal Conspiracy, Cheating and Criminal misconduct by public servants) of PC Act. The CBI was acting upon a complaint filed by Premraj Kuar-Deputy secretary -GOI, against the then NCCF chairman Virender Singh, Ex-MD G P Gupta and S C Singhal (senior advisor-NCCF). The complainant alleged ‘irregularities’ in the award of contract to Adani Enterprises for supply of imported coal to APGENCO.

What did CBI’s inquiry reveal

In 2010, APGENCO floated a limited tender inquiry for supply of 6 lakhs Metric tons of imported coal on free-on-rail destination basis to Dr Narla Tata Rao Therma power station- Vijayawada and Rayalseema Thermal power plant (RTPP) in Kadapa. NCCF in which Central government has 78% share-holding received tender inquiry at its Hyderabad branch. But, instead of NCCF floating an open tender to call for bidders, it ‘ selected’ a single entity that is M/s Maharishi Brothers Coal limited to supply the huge quantity of 6 lacs MTs for a margin of 2.25 %.

However the order to Maharishi was subsequently cancelled citing ‘period of tender extended’and NCCF called for open tenders.Later,the three accused Virender Singh, S C Singhal and G P Gupta called for a meeting and decided that ‘ NCCF’s Hyderabad office will open the offers for tenders and send their proposals for consideration to the competent authority. But investigator found irregularities in approval of draft tender notice.

The CBI in its FIR said, “ It is found that three accused officers rejected 3 companies out of the six bidders citing ‘non-fulfillment of tender norms. But M/s Adani Enterprises Ltd, that did not qualify for the tender was favored. It is prime-facie evident that bids were being processed at NCCF – in Delhi along with representatives of Adani Ltd. Also NCCF over ruled two important tender conditions, and instead of disqualifying Adani Enterprises, the three accused did them an undue favor’.

Ms/ Vyom Trade Link was Adani’s shell company in the APGENCO deal.

Enquiry revealed that Adani group gave an unsecured loan of Rs 16.81 Crore to M/s Vyom Enterprises Ltd in 2008-2009. Further it was revealed that bank guarantees of Adani group and that of Vyom were issued by the same bank (SBI) . CBI in its enquiry found Adani group made Vyom as a proxy company in this tender process.

CBI’s Investigation unraveled the nexus between NCCF officials and Adani Enterprises Ltd.

The three NCCF officers accused of fraud, during their tenure, colluded with Adani Enterprises and manipulated the bid . The accused awarded the contract to Adani group despite its disqualification, the CBI authorities said.