SVO files case against JKPCC for alleged cement purchase graft

The State Vigilance Organisation (SVO) today registered a case against the Jammu and Kashmir Projects Construction Corporation (JKPCC) for alleged mismanagement and violation of tender norms, resulting in losses to the exchequer, officials said.
The case was registered under various sections of the Prevention of Corruption Act and Ranbir Penal Code after the SVO conducted a verification into the allegations that the Managing Director of JKPCC in 2014, Daleep Thusoo, purchased some items from Small Scale Industries Development Corporation (SICOP) at exorbitant rates, a spokesman for the department said.
During the course of verification, it surfaced that the JKPCC had floated Notice Inviting Tender (NIT) in May 2014, for purchase of cement without approaching J&K Cement Limited, which was mandatory as per government instructions, he said.

But due to "poor response", the tenders were cancelled and supply of cements was finalised in favour of Messrs Jai Prakash associates Limited on previous financial year rate - Rs 263 per bag which supplied cement from January to August 2015, the spokesman said.
Subsequently, JKPCC vide another NIT in May 2015 invited tenders for the supply of cement. Jai Prakash Associates were declared the lowest bidder who had quoted the rates Rs 263 per bag, he said.
The SVO official said the government-run JKPCC issued another tender on February 5, 2016 wherein Jai Prakash Associates -- who had quoted the rates Rs 293 per bag -- were declared the lowest bidder.

The SICOP had not participated in any of these tenders, he said.

Despite the fact that there was no interruption of cement supply on the part of Jai Prakash Associates with whom JKPCC had entered into a contract to supply cement at Rs 293 per bag pursuant to the finalisation of tender issued on February 5, 2016, it for unknown reasons placed a supply order with SICOP, he added.
The spokesman said JKPCC opted for supply of cement from SICOP at an average rate of Rs 412 per bag to the tune of 38,000 bags amounting to Rs 1.56 crore.

During the course of verification, it also surfaced that JKPCC had purchased cement from SICOP without any formal orders and in violation of norms, he said.
The spokesman said JKPCC in "utter disregard" to NIT proceedings purchased cement quantity in question on highly exorbitant rates from SICOP without any legal justification and with objective to confer undue pecuniary benefit upon SICOP and its private suppliers.
Thus, he said, the officers of JKPCC with "corrupt motives" and "in connivance with one another by abuse and misuse of their official position as public servants" illegally purchased cement in question from SICOP which resulted in huge loss to state exchequer.