Arappor Iyakkam alleges scam in unloading of coal.

The Hindu: Chennai: Thursday, September 20, 2018.

NGO Arappor Iyakkam has submitted a complaint to the Directorate of Vigilance and Anti Corruption (DVAC), alleging a major scam in the award of contracts by State power utility Tangedco to a private company for unloading domestic coal over a period of 16 years. The NGO alleged that corruption to the tune of ₹2,500 crore had occurred.

Addressing a press conference in the city on Wednesday, Jayaram Venkatesan, convener, Arappor Iyakkam, said Tangedco [then TNEB] had reimbursed the contractor, South India Corporation Ltd., without obtaining necessary documentary evidence, thereby causing a huge loss to the exchequer. The NGO submitted a memorandum to the DVAC with documentary evidence received from Tangedco under the Right to Information Act (RTI).

Labour charges

The main allegation of Arappor Iyakkam is with regard to the difference in labour charges for temporary and permanent workers in the Vizag port for unloading the domestic coal from various coal mines belonging to Eastern Coalfileds, Bharat Coking Coal and Mahanadhi coalfields.

In his complaint, Mr. Jayaram said Tangedco reimbursed a claim of ₹1,267 crore for wages and levy to the private contractor, without obtaining adequate documentary evidence, against an actual payment of ₹239 crore made by the private contractor during the period between 2011 and 2016.

He said though the contract document, under purchase order no. 49, stated that reimbursement should be made based on actuals, the officials of the Electricity Department paid the amount without obtaining the original documents.

The alleged undue favours provided to the private contractor by Tangedco was also questioned by the Comptroller and Auditor General (CAG) and the audit department of Tangedco. The CAG had also questioned the reimbursement of service tax to the private company.

The Arappor Iyakkam accused Tangedco of ‘awarding’ the contract to South India Corporation Ltd. for unloading coal at the Vizag port, without going for a tender to find a contractor ever since 2001.

Mr. Jayaraman claimed, even by a rough estimate, corruption to the tune of ₹2,500 crore has happened from 2001 to 2016 in unloading domestic coal by this private company. Even after this corruption has been brought to light, no steps have been taken by Tangedco to blacklist the contractor, he charged.