Govt Gets Clean Chit In Mukta Panna Deal

The Central Bureau of Investigation (CBI) has examined alleged irregularities in the transfer of Mukta Panna oil fields to a consortium, consisting of Enron and Reliance, from Oil and Natural Gas Corporation (ONGC) and found nothing wrong with the contract, the Delhi High Court was informed yesterday.

Additional solicitor general K N Bhat, appearing for CBI, said an expert committee was constituted keeping in view technicalities involved in the deal and the committee in its report has suggested that no action was required to be taken on the case.

However, a division bench consisting of Justice Y K Sabharwal and Justice M K Sharma asked CBI to file the report of the expert committee in a sealed cover and posted the matter for further hearing on March 3.

 

The bench directed the counsel for the Central government, Rakesh Tiku, to keep original records regarding the award of contract to the Enron-Reliance consortium ready on the next date of hearing.

Petitioners, Centre for Public Interest Litigation and B L Wadhera, have alleged the government awarded the oil field to the consortium for Rs 12 crore, where as the ONGC had spent over Rs 3500 crore for the oil field, which has a reserve of petroleum worth over Rs 2000 crore.

Arguing for the petitioners, advocate Prashant Bhusan said the CBI has lost its right to conduct a probe into the matter as an independent investigating agency because of its conduct during the probe.

He said in December 1995, one of its officers in Mumbai had written to the CBI headquarters for registration of a preliminary inquiry after estimating that the government had suffered a loss of over Rs 7,000 crore in the deal.

This suggestion was rejected.

Soon afterwards, the comptroller and auditor general in its report raised several objections to the manner in which the oil field, off Bombay High, was awarded to the consortium.

Bhusan said in March 1996, the same CBI officer suggested that as CAG has also come out with a report raising questions about the deal, the investigating agency should register a regular case for interrogation and seizure of documents relating to the deal.

The bench said, after perusing the expert committees report, it would ascertain whether the contract was procured on extraneous considerations and would proceed with further hearing only after it was satisfied about this.

The petitioner had alleged that Rs 4 crore were paid by Reliance as bribe to Satish Sharma, who was the petroleum minister then, for award of the deal to the consortium.