Cairn denies bribing MP for taking land for pipeline

Cairn India today denied a charge by a Congress MP that it had offered bribes to him and said vested interests were trying to stall a project of national importance.

Reacting to the charge by Vikrambhai Arjanbhai Maadam in Lok Sabha, a Cairn Spokesman said the "allegations levelled by Madaam are completely false and are vehemently denied".

"The Company reserves its rights to seek legal remedies against an attempt to malign the reputation of the company and its employees," Cairn India spokesperson said.

The spokesperson refuted the allegation saying no land of any farmer was taken for laying the pipeline to transport oil from its Rajasthan fields to Gujarat coast.

The company took the land for laying the pipeline on lease from local people.

It laid the pipeline at least 6 meter below ground, properly levelled the land and returned it to farmers who are using it to cultivate crops, it said.

"The Mangala Development Pipeline Project is the longest continuously heated and insulated pipeline in the world and is a project of national importance," Cairn said.

The pipeline has been constructed and laid in accordance with the notified regulations under the Petroleum and Minerals Pipeline Act, 1962 and international best practices.

The acquisition of the Right of Use (RoU) has been performed by a Competent Authority appointed by the government, it said.

"Cairn India has paid the compensation in full to the landowners, as decided by the Competent Authority in accordance with governing law," it said.

The pipeline laying and RoU reinstatements have been subject to regular review by auditors appointed by international financing agencies and the findings demonstrate that Cairn India adheres to best corporate governance practices.

"Our employees are our assets and they follow company policies in a diligent manner. Cairn demands and maintains the highest ethical standards in carrying out its business activities."

The excellent support received by the company along the operational part of the pipeline (590 km), which is more than 80 per cent of the total pipeline length, demonstrates the high standards of business ethics followed by the company in all its dealings with various stakeholders.

The last segment of 80 km, which is now under construction, has suffered extended delays, it added.