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CBI files case against 13 top ONGC men for using urgency to bypass rules in contract

A corruption case was registered after ONGC vigilance department forwarded a complaint to the CBI.

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The Central Bureau of Investigation has filed a case against 13 top Oil and Natural Gas Corporation (ONGC) officials — including former Executive Director DG Sanyal and Director (Onshore) Ashok Verma — at Rajahmundry in Andhra Pradesh for irregularities in the Rs 312-crore gas dehydration units (GDUs) contract given to one Deep Industries. The officials are accused of abusing their position for wrongful gain in the name of urgency for a massive fire that broke out after a blast in the Gas Authority of India Limited (GAIL) underground gas pipeline at Nagaram village in 2014. The tragedy had claimed 16 lives.

A corruption case was registered after ONGC vigilance department forwarded a complaint to the CBI. The agency alleged large-scale fraud in the processing of tenders for hiring of gas dehydration units in two phases that was handled by the ONGC.

"The ONGC officers along with Paras and Rupesh Salva, Chairman and managing director of Deep Industries Limited respectively, entered into a criminal conspiracy for the contract of gas dehydration units," the FIR stated.

The CBI alleged that the ONGC officials, citing urgency in the matter, abused their position to award contracts while overlooking guidelines issued by the public sector undertaking. Thus, instead of rejecting the sole bid, as is the norm, it awarded the tender to Deep Industries.

It is further alleged that after the fire in the Tatipaka-Lanco sector of Gail, the largest state-owned natural gas processing and distribution company in India which resulted in a loss of Rs 3 crore per day, a report submitted that there were inadequacies on the surface facilities of Rajahmundry assets with respect to gas parameters and gave various suggestions.

Eventually, it is alleged that the accused public servants led to wrongful gain to the tune of Rs 80 crore to ONGC and a corresponding wrongful gain for Deep Industries.

Using Urgency To Bypass Guidelines

  • Graft case registered after ONGC vigilance department forwarded a complaint to the CBI 
  • Accused of abusing position for wrongful gain in name of urgency for a massive fire that broke out after a blast in GAIL underground gas pipeline at Nagaram in 2014 
  • Officers allege that in case of a sole bid, instead of rejecting as per protocol, tender for GDUs was awarded to Deep Industries 
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