CBI registers case against Private persons and Companies(Based in UAE, South Koria, UK) on Criminal conspiracy etc

CBI registers case against Private persons and Companies(Based in UAE, South Koria, UK) on Criminal conspiracy etc New Delhi, July 1, 2020: The Central Bureau of Investigation has registered a case against UAE based private company & its Director; a South Korea based private company & its then Senior Manager; another UK based private company; unknown officials of ONGC/OPaL and unknown others on the allegations that the Director of UAE-based company acted in criminal conspiracy with other accused and in furtherance of the said conspiracy entered into a consultancy agreement with South Korea based private company in violation of the contract agreement between M/s OPaL & said South Korea based private company and allegedly obtained US$ 49,99,969(approx) from said South Korea based private company in the overseas bank account of a private company based at UAE in order to induce unknown public servants to show undue favour to the consortium of said South Korea based private company in the award of contract of  DFCU project at Dahej, Gujarat. The said agreement was relating to the alleged consultancy services to be provided by UAE based company to South Korea based private company for obtaining the said contract. It was further alleged that the South Korea based private company has to pay Ten Million USD as coordination and Consulting fee, with 50% payable within 30 days of receipt of advance payment from ONGC and other 50% payable within 6 months of the receipt of payment from ONGC.
It was further alleged that the tender for DFCU project was floated on 20.04.2007 and two consortiums namely (i) Germany & South Korea based private company and (ii) USA and India based private company submitted their bids for the project. The contract was awarded to the consortium of South Korea & Germany based company at their quoted lump sum price on the basis of the higher Net present value calculated by UK based company. The consortium of USA based companies challenged the said selection. But the representation was turned down and the tender of DFCU was finally awarded to the consortium of South Korea & Germany based company for lump sum price of Rs.6744.32 crore(approx)  and the contract was signed on 10.02.2009.

      It was also alleged that as per the contract agreement between OPaL and consortium of Germany & South Korea private company, no agent/consultant was engaged and no commission/fee was payable either in India or abroad against this contract. Thus South Korea based company allegedly concealed the facts of consultancy agreement with UAE based company while signing the integrity pact and contract agreement with OPaL.

      It was further alleged that the agreement between UAE based private company and South Korea based company stipulated that 50% of the total consultation fee shall be payable within 30 days after the receipt of advance payment from the ONGC. But on the date of agreement i.e. 30.10.2007, the ONGC/OPaL Board had not approved the advance payment to be released to the tenderer and the tender document (BEC) did not have the provisions for making advance payment. However, the OPaL board in its 5th meeting held on 17.12.2007 allegedly approved the provision of advance and linked the payments to the progress of the work. The interest-free advance payment was made in contravention of CVC circular and CAG in its report has also raised objection on the same.

      It was also alleged that advance payment to South Korea based company was made by OPaL and an amount of USD 49, 99,969 was credited from the account of said South Korea based private company in the bank account of said UAE based private company at Dubai.
Name of the accused:
Sanjay Bhandari, M/s Santech International, FZC, UAE, M/s Samsung Engineering Co. Ltd., South Korea, M/s Foster Wheeler Energy Ltd., UK, Hong NamKoong, the then Sr. Manager, M/s SECL, South Korea, unknown officials of ONGC/OPaL and unknown others

The investigation is continuing.

By SK.Vyas:

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