Excelsior Correspondent
JAMMU, Jan 11: Chief Minister Omar Abdullah today handed over one of the biggest scandal in the State running into at least Rs 100 crores in the Government owned JK Cements Limited to the State Vigilance Organisation (SVO) for an in-depth inquiry and taking action against the accused involved in the irregularities.
The irregularities have been detected in purchase of machinery, upgradation of old plant, raw material and maintenance of the equipments. About Rs 16 crores worth shortfall has also been detected in raw material and cement.
Official sources told the Excelsior that Minister for Industries and Commerce Sajjad Ahmad Kitchloo took up the major fraud committed in the Public Sector Undertaking (PSU) by the then officers and officials in connivance with some leading private companies with the Chief Minister after an in-house inquiry ordered by Mr Kitchloo confirmed that irregularities running into several crores have been committed in the PSU.
The Chief Minister went through the files and saw massive fraud committed in the PSU. He immediately directed that the case should be handed over to the Vigilance Organisation for registration of First Information Report (FIR) and taking action against the officials/officers involved in committing the fraud.
Mr Kitchloo confirmed to the Excelsior that the irregularities have been detected in both plants of JK Cements Limited at Bari Barahamana in Jammu and Khrew in Pulwama district. He said the Chief Minister decided to handover the case to the Vigilance Organisation after going through the in-house inquiry conducted by the officials of JK Cements Limited.
Sources said there has been shortfall of cement and raw material worth Rs 9 crores tentatively in the two plants of the PSU. The figure of shortfall was tentative and it was likely to go up to Rs 16 crores, they added.
“Very high cost has been shown in the purchase of new machinery, upgradation of plants, and taking raw material. The total irregularities in the purchases and shortfall etc have been estimated around Rs 100 crores at present and might go up when full-fledged investigations are taken up by the Vigilance Organisation,’’ sources said.
They added that anti-pollution devices purchased by the JK Cements Limited were such that even the Deputy Commissioner, Pulwama was forced to issue notices to the PSU to check pollution at its Khrew plant.
“The JK Cements Limited was one of the rare PSU, which had been running into profits, which have started dwindling as quality of the cement has been compromised due to purchase of inferior raw material and sub standard machinery,’’ sources said, adding the Government has taken serious note of the purchase especially after the departmental inquiry confirmed the irregularities and handed over the case to the Vigilance Organisation for a thorough probe, registration of FIR and initiating action against former and incumbent officers and officials of the PSU whosoever are found guilty during the Vigilance probe.
Sources said the accused officers and officials of JK Cements Limited had entered into criminal conspiracy with some private companies and purchased inferior equipments and raw material from them and, in turn, gained huge monetary benefits not only for themselves but also extended the undue benefits to the private companies from whom the machinery was purchased.
Confirming that the fraud could run into at least Rs 100 crores or even beyond, sources said the Chief Minister and the Industries and Commerce Minister have asked the Vigilance Organisation to ensure that the guilty officials and officers, whatever positions they presently hold or were previously holding, shouldn’t go scot free.
Sources said the Chief Minister’s Office has also sent a written complaint along with copies of in-house report of the PSU and other available material to the Vigilance Organisation for initiating further probe into the multi-crore scandal.
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