The Central Bureau of Investigation (CBI) has registered a corruption case against officials of the National Thermal Power Corporation (NTPC) and three other companies, allegedly for over-invoicing inferior coal imported from Indonesia between 2012-15. The scam caused caused a total loss of Rs 487 crore. The CBI registered a case based on an inquiry by the Directorate of Revenue Intelligence (DRI). The DRI has probed the allegations and served notices to the parties concerned.
The DRI alleged that officials of NTPC, Metals and Minerals Trading Corporation (MMTC), Aravali Power Company Limited (APCPL) and Chennai-based Coastal Energy Private Limited (CEPL) cheated the government exchequer of Rs 487 crore by importing inferior quality coal from 2011-12 to 2014-15.
APCPL is a joint venture company with 50 percent share of NTPC Ltd, 25 percent of Haryana Power Generation Company Ltd and 25 percent of Indraprastha Power Generation Company Ltd of Delhi government. The company also runs coal based thermal power plants.
The agency has filed a case for criminal conspiracy cheating and provisions of Prevention of Corruption Act against Ahmed A R Buhari, promoter of CEPL, unidentified officials of NTPC, MMTC and APCPL.
As per the FIR, the NTPC and APCPL had floated global tenders for the supply of imported coal of a certain grade and quality. The grade and quality of the coal are crucial for achieving certain levels of power plant operations.
The MMTC and CEPL emerged successful bidders for the supply of coal. The CEPL instead of importing coal from Indonesia directly, routed their supply through Dubai-based sister concerns, enabling them to manipulate invoiced and quality certification. CEPL entered into agreements with its sister concerns in Dubai and MMTC entered into tripartite agreements with CEPL and its sister concerns in Dubai.
"The fraudulent modus operandi adopted by CEPL had resulted in supply of coal of inferior quality to the said power generation companies, as coal of higher grade with active criminal participation of public servants concerned of NTPC, APCPL and MMTC by way of misuse of their official position," the FIR said.
It is alleged that MMTC and CEPL imported 90 and 57 consignments respectively between 2011-12 and 2014-15 for supplying to NTPC which received 143 of them and APCPL which received four. Both MMTC and CEPL provided inflated values for these imports.
According to DRI probe, over invoicing of Rs 363 crore was done by the MMTC while Rs 124 crore was done by CEPL. "Thus a total excess amount of more than Rs 487 crore was paid by NTPC and APCPL to CEPL and MMTC in the import of coal," the FIR stated.
Also to conceal the original grade of the coal, the importing companies allegedly did not avail duty concessions offered by Central government for coal imports originating from Indonesia as they would have to submit factual documents from Indonesian exporters which would have exposed the actual value of the imports. And NTPC, despite knowing that they are getting coals over priced rates did not press for fulfilling duty exemption requirements which they did not do and accepted the consignments of coal.
LOSS FIGURES
- The scam caused caused a total loss of Rs 487 crore. The CBI registered a case based on an inquiry by the Directorate of Revenue Intelligence (DRI). The DRI has probed the allegations and served notices to the parties concerned.
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