The shipping ministry?s quick action on the complaint of a Trinamool Congress MP alleging irregularities in awarding a contract of berth operation in 2004 has come as a damage control measure. If the contract isn?t scrapped, it will drag shipping minister of UPA-1 TR Baalu and other top ministry officials into a multi-crore scam.
Trinamool Congress MP Subhendu Adhikary claimed that the shipping ministry, acting on his letter pertaining to a contract awarded to ABG Kolkata Container Terminal illegally, has asked the Kolkata Port Trust (KoPT) ?to explore the possibility of termination of the contract? and take necessary measures ?to recover excess payment? made by KoPT on account of service tax reimbursement, ?being paid illegally to the contractor of the berth?.
ABG Container Terminal is operating berth 4 and 8 of the Kolkata Dock System under the contract. While KoPT?s acting chairman AK Majumdar said he has not yet received any letter from the ministry directing such action, ABG denied any comment on the issue.
Adhikary said the ministry has issued two letters on February 11 and February 15 directing termination of the contract with ABG. A letter (copy in possession of FE) written by an under secretary in the shipping ministry Abhijit Bakshi to the acting KoPT chairman has asked to initiate immediate action for recovery of Rs 10 crore from ABG Container Terminal, which has been cumulatively disbursed to it since the award of the contract in April 2004 for payment towards service taxes.
According to KoPT officials, a section of port officials based on a verbal communication of former KoPT chairman Anup Chanda reimbursed service taxes?a violation of tender terms.
Even awarding of the contract in 2004 was full of ambiguity as the L-1 bidder was issued a letter of intent in January 2004 while the contract was signed in April 2004 with a party Cardinal Logistics that was not even a bidder. In this, the L1 bidder was a minority share holder and ABG Heavy Industries the major one. ABG heavy Industries that separately responded to the bid was a L-3 bidder. Sources said Cardinal Logistics was formed in May 2003 and was owned by the Agarwal family, which also owns ABG Heavy Industries. In 2006, Cardinal Logistics became a fully-owned subsidiary of ABG Heavy Industries and was renamed ABG Kolkata Containers Terminal Pvt Ltd. ABG Heavy Industries was renamed ABG Infralogistics in November 2007.
Adhikary alleged that ?it is obvious ABG made a backdoor entry and the entire manipulation was made by Anup Chanda in connivance with a section of the ministry officials and former shipping minister TR Baalu.?
TR Baalu?s son TRB Rajkumar is on ABG board. ABG also bagged contracts in Vizag, Kandala, Paradip and Haldia during Baalu?s ministership. Haldia Dock Bachao Committee officials claimed that all the contracts awarded to ABG should come under the vigilance scanner.