Former HECL Chief Avijit Ghosh Faces Corruption Charges by CBI

The Central Bureau of Investigation (CBI) has filed a corruption case against Avijit Ghosh, the former chairman and managing director of Heavy Engineering Corporation Ltd (HECL), officials revealed on Monday. Ghosh is accused of irregularities in establishing a skill development centre in partnership with CNIITMASH, a Russian joint stock company.

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The CBI's First Information Report (FIR) states that Ghosh and others conspired with CNIITMASH between 2015 and 2019 to defraud the government by manipulating an Expression of Interest (EOI). The agency registered the FIR under sections of the Indian Penal Code related to criminal conspiracy and provisions of the Prevention of Corruption Act after a year-long preliminary enquiry.

Allegations of Manipulated EOI

The preliminary enquiry by the CBI highlighted several irregularities, including a non-transparent and biased EOI process. Changes were made without Board or ministry approval, and payments were made based on false information and completion certificates. The rationale behind the agreed price was also questioned due to biased negotiations.

In November 2014, the Centre launched a scheme aimed at boosting the Indian economy by making the Indian Capital Goods Sector globally competitive. Under this scheme, the government would provide grant-in-aid to industries forming a special purpose vehicle (SPV) as not-for-profit entities for setting up Common Engineering Facility Centres (CEFCs).

Grant-in-Aid Scheme

According to the scheme, the government would offer up to 80% of the project cost as a one-time grant-in-aid, capped at Rs 48.96 crore for two CEFCs. The remaining 20% was to be invested by the SPV. HECL issued an EOI to attract internationally reputed firms and research institutes for technological collaboration and transfer.

The CBI alleged that Ghosh submitted a backdated proposal to the Ministry of Heavy Industries for setting up a skill development centre with a consultation fee of Rs 30 crore payable to CNIITMASH from the grant. This fee was intended for training 1,350 engineers over three years. However, only one batch of 86 engineers was trained, and Rs 16 crore was paid to CNIITMASH.

Irregularities in Training Programme

The enquiry revealed that CNIITMASH did not possess the technology for steel plants and other items as claimed in March 2015. There was also an overall lack of supervision and adherence to norms and regulations. The chosen agency's claims about their technological capabilities were found to be false.

The CBI's investigation continues as they delve deeper into these allegations. The agency aims to uncover more details about the alleged conspiracy and financial irregularities involving Ghosh and CNIITMASH.