Cong leader moves CVC against Nitin Gadkari

Digvijaya Singh accuses Gadkari of nepotism in awarding Zoji La contract

Congress' Digvijay Singh moves CVC against Nitin Gadkari; alleges nepotism in awarding of Zojila pass tunnel contract
BS Reporter New Delhi
Last Updated : Jan 12 2016 | 12:15 AM IST
Congress party general secretary Digvijaya Singh has petitioned the Central Vigilance Commission (CVC), accusing Road Transport minister Nitin Gadkari of “crony capitalism” and “nepotism” in awarding the Rs 10,050-crore contract for the Zoji La Pass Tunnel in Jammu & Kashmir.

IRB Infrastructure Developers got the contract and Singh alleges it is a company with which Gadkari earlier had business dealings. The ministers links with the Mhaiskar clan, promoters of IRB Infra, was the “worst kept secret”, contends Singh. Also, that Nikhil Nitin Gadkari, the minister's son, is a shareholder and promoter director in Ideal Energy Projects, part of the IRB Group. He also wants Gadkari's removal as a minister.

Responding, Gadkari stated, “Nothing is done in my department without following the due process of e-tender." And, told reporters, “My son is not a director in that company. I have no stake in that company. I have absolutely nothing to do with this.”

In his letter to the CVC commissioner, Singh states, “IRB will receive semi-annual annuity of Rs 981 crore, commencing after completion of construction.” He has urged CVC to take immediate action “to ensure that the first instalment of Rs 981 crore is withheld till proper enquiry is made”.

Singh says IRB was the sole bidder in the final round and despite other prominent companies in the reckoning in the initial rounds, “they were given specific signals to withdraw or face consequences in other projects. The award was designed, structured and implemented in such a way that CVC guidelines were given a proper by-pass.”

Addressing the media, Singh alleged IRB Infra had invested in the Purti Group of companies, founded by Gadkari. He alleged IRB had no prior experience of such work and despite that it was given the contract of the Zojila Pass Tunnel in Jammu and Kashmir as a BOT project.

Singh has urged PM Narendra Modi to sack Gadkari as it is a "clear case of corruption at the highest level".

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 12 2016 | 12:13 AM IST

Next Story