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Flash Back February 1996

CBI Probe into ONGC Scam

In Tripura, Rupees twenty million plus scandal in ONGC project has taken everyone by surprise. Three top officialsa of ONGC and an executive of a pipe manufacturing company were allegedly involved in this scam. The charge sheet filed by the CBI before the court of the Special Judge, Mr. Durgadas Purkayastra, District and sessions Judge, Agartala, revealed the scam. The pipe scandal gyrates around the still born joint sector undertaking of the Tripura government and a private concern of Delhi incorporated on 7th April 1989 with an authorised capital of Rs. 1.50 crores.

While the project did not reach even chrysalis, the ONGC officials began their action to procure pipes in anticipation of the demand when actual demand in proper form was not placed. According to the CBI charge sheet submitted to the Special Judge, three top officials of ONGC entered into a conspiracy to purchase 10,000 metres of 20 inch diameter O.D pipes (which are required for transporting oil from the Gulf countries) by “deliberately creating artificial requirement” to carry gas to the proposed Vanaspati plant involving an expenditure of Rs. 1,85,00,000. The tender was invited. The SAIL (Steel Authority of India) also submitted the tender but on “flimsy ground”, the SAIL’s tender was rejected, noted the CBI report.

The order was placed with the Delhi based company to supply 9993 metres of pipes at a  ....