ACB books then CEO JAKEDA, others for misappropriation of funds

Excelsior Correspondent
JAMMU, Sept 3: Anticorruption Bureau Jammu has registered a case against Gulzar Hussain, the then Chief Executive Officer Jammu and Kashmir Energy Development Agency, M/S Green Technologies Solutions Pvt Ltd, its proprietor Javid Ahmed Kanth, M/s Tata Power Solar System Pvt Ltd for alleged misappropriation of funds meant for installation of solar home lights.
A preliminary enquiry was conducted to look into allegations that one contractor namely Javid Ahmad Kanth of Anantnag in connivance with officers/officials of Science and Technology Department and JAKEDA managed most of the contracts during the year 2009 to 2014. It was alleged that the contractor even managed to draw maintenance cost to the tune of 10% without doing the same on ground etc.
The enquiry revealed that tenders were invited regarding contract of solar home lights and solar street lights. The NIT was modified further by issuance of three corrigendum’s thereby making changes in the eligibility criteria for the contract. In order to confer undue benefit to the M/s Tata Power Solar Systems Ltd. and the firm executing it’s allotted works in J&K namely M/s Green Technologies, the pre-qualifying conditions were changed after issuance of NIT and made so stringent that no other bidder could qualify the technical evaluation.
Consequently, out of three parties, M/s Tata Power Solar System Ltd was declared eligible and the work for supply, installation and commissioning, warranty and free maintenance (including preventive maintenance) for a period of five years of 44483 solar home lighting systems was allotted to M/s Tata Power Solar Systems Ltd at the rate of Rs 9581 per unit.
The probe has also revealed that 44,435 units were supplied by the allottee company against 44,483 units for which payment has been made on account of supply at the rate of 70% of total cost of unit amounting Rs 29,02,06,288 and payment for installation of 35,750 units at the rate of 20% of total cost of unit amounting Rs 5,85,52,495 making the total payment Rs 34,81,58,783/-.
However as per Clause 60(b) of the NIT, the payment to the tune of 20% on account of installation of units was to be released after completion of installation and commissioning of the material on pro-rata basis. Further the payment was to be released after setting up of service centers with adequate supply of spare parts and submission of performance bank guarantee at the rate of 10% of project cost as per conditions envisaged in NIT and agreement executed between CEO JAKEDA and M/s Tata Power Solar System Ltd.
It has transpired that the solar home lights were issued to the beneficiaries from BDO office concerned in the year 2014-15. The supply and installation work was found done by the beneficiaries themselves. Only 80% of SHLs were found in working conditions and no repair work for the remaining faulty units was found done or carried out by the company during enquiry.
Further, no service center has been established by the company as provided in tendered documents and electric shops of some private person have been shown as service centers. These service centers have no affiliation with the contractor company M/s Tata Power Solar System Ltd.
In this regard, the bank guarantee of Rs 4,26,19,162 kept for ensuring maintenance of installed units which was to be en-cashed by the CEO JAKEDA on failure of vendor to provide maintenance services during the warranty period of 05 years has already expired without any action by JAKEDA.
In this way, the officers and officials of JAKEDA under well knit conspiracy with the proprietors of M/s Green Technologies Solutions Pvt. Ltd. and M/s Tata Power Solar systems Ltd. abused their official positions in allotment of contract for installation of solar home lights in J&K, release of payment on account of installation of solar home lights amounting Rs 5,85,52,495/- and non encashment of Bank Guarantee of Rs 4,26,19,162/- despite the installation was done by the beneficiaries themselves and no maintenance service was provided by the company, thus conferred undue benefit upon the companies with corresponding loss of Rs 10.11.71.657/- to the state exchequer.