CBI Files Case Against Former JNPT and TCE Officials Over Rs 800 Crore Dredging Irregularities

The Central Bureau of Investigation (CBI) has initiated legal proceedings against former officials of the Jawaharlal Nehru Port Trust (JNPT), Tata Consulting Engineers (TCE), and two dredging firms. This action concerns alleged irregularities exceeding Rs 800 crore in a project aimed at deepening ship navigational channels near Mumbai. The CBI's move follows a three-year preliminary inquiry into these allegations.

In its First Information Report (FIR), the CBI has charged Sunil Kumar Madabhavi, the former chief engineer of JNPT, and Devdutt Bose, the former project director of TCE. Additionally, Boskalis Smit India LLP, Jan De Nul Dredging India Pvt Ltd, and other unidentified public servants face charges under IPC Section 120-B for criminal conspiracy, Section 420 for cheating, and provisions of the Prevention of Corruption Act.

Allegations and Investigations

The investigation revealed a conspiracy involving JNPT officials and private entities, including a TCE official. This resulted in a wrongful loss of Rs 365.90 crore during phase-I and Rs 438 crore during phase-II due to over-dredging. The project aimed to deepen and widen the navigational channel shared with Mumbai Port to accommodate larger cargo ships.

The CBI's inquiry highlighted several violations. These included inflated estimates, favouring international bidders by manipulating tender conditions, and extending undue favours to contractors. The agency also noted suppression of reports from independent expert organisations.

Searches and Recoveries

Following the FIR registration on Wednesday, the CBI conducted searches at five locations in Mumbai and Chennai. These included the residences of Madabhavi and Bose, as well as offices of private companies involved. A CBI spokesperson stated that numerous documents related to the Capital Dredging Project were recovered, along with digital devices and documents showing investments by public servants.

The investigation also uncovered violations of guidelines set by the Competition Commission of India. These included allowing complimentary bidding and forming joint ventures between eligible bidders like Boskalis Smit India LLP and Jan De Nul Dredging India Pvt Ltd.

Project Background and Mismanagement

The JNPT project was initiated in 2003 to cater to larger cargo ships by deepening navigational channels. TCE was tasked with preparing a final report on dredging activities for Phase-I, submitted in 2010 with Dredging Solution's assistance. TCE also managed project consultancy, including tender document preparation and supervising execution.

The CBI found that JNPT officials collaborated with TCE executives to favour foreign bidders by setting biased tender conditions. They violated guidelines by allowing joint ventures between solely eligible bidders like Boskalis Smit India LLP with Jan De Nul Dredging India Pvt Ltd.

The inquiry also revealed several irregularities such as rate fixation violations for dredging different rock types, project delays, false claims amounting to Rs 348 crore without actual work performance, excess payments totalling Rs 430 crore, and manipulation of pre-dredge surveys using less accurate software like Qinsy.

No immediate response was available from the accused companies regarding these allegations. The CBI continues to examine the recovered documents as part of its ongoing investigation into this significant case.

With inputs from PTI