The Central Bureau of Investigation (CBI) has registered a case against former Tata Consulting Engineers (TCE), Jawaharlal Nehru Port Trust (JNPT) officials and two dredging companies on charges of suspected irregularities to the tune of more than ₹800 crore in the Capital Dredging Project to deepen ship channels along the Mumbai coast, news agency PTI said, quoting officials.
Three-Year Probe Leads to FIR Against Top Officials and Firms
The federal investigation unit moved after conducting a three-year preliminary investigation into accusations that comprised exaggerated project estimates, manipulation of competition in favor of foreign companies, giving unfair favours to contractors, and the concealment of independent expert bodies’ findings.
The CBI, in its FIR, has named the then JNPT chief engineer Sunil Kumar Madabhavi, then project director of TCE Devdutt Bose, Boskalis Smit India LLP, Jan De Nul Dredging India Pvt Ltd and other unnamed public servants under IPC Section 120-B (criminal conspiracy), 420 (cheating) and Prevention of Corruption Act provisions.
CBI Raids and Evidence Collection in Mumbai and Chennai
Following the FIR being lodged on Wednesday, the CBI also carried out searches in five locations in Mumbai and Chennai, such as the house of Madabhavi, Bose and private companies’ offices.
A CBI official reported that a series of documents pertaining to the Capital Dredging Project, digital equipment and investment documents made by public servants were recovered.
The documents retrieved are being analyzed, she added. No reaction was immediately available from the accused firms, PTI added.
“The allegations of pecuniary advantage obtained by the private companies as a result of abuse of official position by the JNPT officials resulting into a huge wrongful loss to the exchequer, spread over the period from 2003 to 2014 (phase-I of the project) and 2013 to 2019 (phase-II of the project) was also inquired,” the CBI said in the FIR.
The CBI Investigation Discovered
The investigation unearthed a criminal conspiracy by officials of Jawaharlal Nehru Port Trust (JNPT), private persons, including a Tata Consulting Engineers (TCE) executive, and others.
This so-called collusion led to wrongful losses of ₹365.90 crore in Phase-I and ₹438 crore in Phase-II of the dredging project through over-dredging.
Project Background and Role of TCE
The case arises out of a 2003 project by JNPT to deepen and widen the common navigational channel with Mumbai Port to receive bigger cargo ships.
TCE was hired to finalize the report for Capital Dredging Phase-I, which it submitted in 2010 jointly with Dredging Solution. The firm was also made the project management consultant, who had to prepare tender documents and oversee project implementation, as per FIR.
Tender Manipulation and Foreign Favouritism
CBI’s initial investigation discovered that officials in JNPT, together with the TCE executives, designed the tender terms to benefit foreign bidders. They allegedly flouted Competition Commission of India (CCI) rules by allowing free bidding and letting the creation of a joint venture between Boskalis Smit India LLP and Jan De Nul Dredging India Pvt Ltd (BSI-JDN JV), which were the only eligible bidders.
The investigation also brought to light several instances of misconduct, such as anomalies in rate fixation for varied types of rocks, procrastination in the implementation of the project, a fictitious claim of ₹348 crore by the contractor for non-executed work, overpayments worth ₹430 crore, and fudging of the pre-dredge survey using less accurate software, ‘Qinsy’, amongst others.
