Delhi District Court
Central Bureau Of Investigation (Cbi) vs Surender Pal Singh Rana S/O Sh. Parmal ... on 21 April, 2016
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IN THE COURT OF SH. GURDEEP SINGH, SPECIAL JUDGE
(PC ACT) CBI-05, NEW DELHI DISTRICT, PATIALA HOUSE
COURTS, NEW DELHI
Closure Report No. :10/15
Unique Case Id: 02403R0284392015
RC No. : DAI-2014-A-0028
U/s : 120-B r/w S. 420 & 477-A IPC and
S. 13(2) r/w 13(i) (d) PC Act, 1988 and substantive offences thereof.
TITLE:
1.Central Bureau of Investigation (CBI) VERSUS
1. Surender Pal Singh Rana S/o Sh. Parmal Singh Assistant Engineer, DJB R/o : A-398, Sector-19, Noida, UP
2. Bir Singh s/o Late Sh. Budh Ram Executive Engineer (E), DJB R/o: H. No.23, Village-Khichripur, Delhi-110091
3. Gazender Pal Singh S/o Late Sh. Chander Pal Singh Assistant Engineer, DJB R/o: L-1/25, Budh Vihar, Phase-I New Delhi-110086
4. Gazender Pal s/o Late Sh. Karan Singh Executive Engineer (Retd.), DJB R/o: Amarpura Nehra, P.O. Lodha PS Lodha, Dist. Aligarh, U.P.
5. Parmod Sanwal s/o Sh. Dev Dutt Sharma Proprietor of M/s Pacific Marketing & Engineers R/o: B-1/531, Janakpuri New Delhi-110058
6. Siddhant Gupta s/o Sh. Anil Kumar Gupta Proprietor of M/s Nath Envirotech Engineers R/o: B-276, Sarswati Vihar, Pitampura, Delhi-110088 Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 1 of 14 -2- Date of Institution : 23.12.2015 Date of reserving order : 21.04.2016 Date of pronouncement : 21.04.2016 (Appearances) Sh. K.P. Singh, Ld. PP for CBI.
IO Inspector Harnam Singh.
ORDER ON CLOSURE REPORT
1. This closure report is filed by CBI with respect to FIR/RC No.:
DAI-2014-A-0028/CBI/ACB/ New Delhi for the offences punishable under S. 120-B, 420 & 477-A IPC and S. 13(2) r/w 13(i) (d), PC Act, 1988 and substantive offences thereof.
2. The relevant facts for the consideration of this closure report are that this case was registered on 22/07/2014 on the basis of written complaint dated 11.07.2014 of Shri Anand Swarup, Inspector, CBI/ACB/Delhi on the allegations that during the year 2011-2012, on the basis of authorization of sole dealership given by (1) M/s. Kirloskar Electric Company, (2) M/s Premium Transmission Ltd. (3) M/s Sintex Industries Ltd, (4) M/s TIDC India, 20 work order on single offer basis was issued by the concerned Executive Engineer of SDW-V of DJB to M/s. Nath Envirotech Engineers during the year 2011-2012 for supply of materials/items to be used in STPs (Sewage Treatment Plant) and SPS (Sewage Pumping Station), and renovation of STPs installed in said division of SDW- V. The said firm M/s. Nath Envirotech Engineers did not supply most of the items against the work orders/supply orders to the tune Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 2 of 14 -3- of Rs. 73,86,488/- and supplied the items to the Delhi Jal Board at exorbitant rates, four to five times costlier than the actual price on which the said firm purchased the materials from the manufacturers. The said firm M/s. Nath Envirotech Engineers did not carry out the work of renovation/repairs to the tune of Rs. 62,91,246/-.
3. It is further alleged that, during the year 2011-2012, on the basis of authorization of sole dealership given by M/s. GEO Miller & Co. Pvt. Ltd, 06 work order on single offer basis was issued by the concerned Executive Engineer of SDW-V of DJB to M/s. Pacific Marketing & Engineering Co. during the year 2011-2012 for supply of materials/items to be used in STPs, and renovation of STPs installed in said division of SDW-V. The said firm M/s. Pacific Marketing & Engineering Co. did not supply most of the items against the work orders/supply orders to the tune of Rs. 23,73,000/- and supplied the items to the Delhi Jal Board at exorbitant rates, four to five times costlier than the actual price on which the said firm purchased the materials from the manufacturers. The said firm M/s. Pacific Marketing & Engineering Co. did not carry out the work of renovation / repairs to the total tune of Rs. 9,84,335/-.
4. It is also alleged that during the said period Sh. S. P. S Rana, JE;
Sh. Bir Singh, AE; Sh. G.P Singh, AE (now retired) and Sh. G.P Singh EE (now retired) were posted in the said division and dealt Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 3 of 14 -4- with the work orders issued to M/s Nath Envirotech Engineers and M/s. Pacific Marketing & Engineering Company. Hence, the said officials of DJB entered into criminal conspiracy with dealers namely Sh. Sidhant Gupta, proprietor of M/s Nath Envirotech Engineers and Sh. Parmod Sanwal, proprietor of M/s Pacific Marketing & Engineering Co. and unknown others to cheat the DJB and to facilitate the said dealers, issued work orders to the above said dealers for supply of materials as well as renovation of STPs/SPS installed in SDW-V of DJB and in furtherance of said criminal conspiracy dishonestly or fraudulently by abusing their official position flouted the norms/rules/procedure of DJB and without actual supply of material and without doing any renovation work the above said DJB officials made false entries in the stock register, measurement book, job register, old material register etc. It is further alleged that the said DJB officials also verified the bills submitted by the said dealer without obtaining purchase vouchers of the manufacturers and payment was released to the said dealers. Further, in pursuance of said criminal conspiracy the said officials of Delhi Jal Board dishonestly and fraudulently overlooked the exorbitant rates of the items supplied by the firm.
5. It is further alleged that this case involves as many as 26 work orders wherein purchase of spares of motor parts to be used in STP/SPS and repair of STP/SPS worth total Rs.3,82,00,306.32 (Purchase Rs.3,55,98,848.7 with taxes- Rs.26,01,459.7 ).
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6. It is alleged that during investigation, besides other relevant documents the CBI also seized file of Work order No.-06, 10, 24, 26, 34, 45, 47, 56, 62, 63, 74, 90, 91, 94, 112, & 113 relating to authorization of sole dealership given by M/s. Premium Transmission Limited to M/s. Nath Envirotech Engineers, and file of Work Order No.07, 75 relating to authorization of sole dealership given by M/s. SINTEX to M/s. Nath Envirotech Engineers, file of Work Order No.21, relating to authorization of sole dealership given by M/s. Kirloskar Electric Co. Ltd to M/s. Nath Envirotech Engineers, file of Work Order No.112, relating to authorization of sole dealership given by M/s. TIDC to M/s. Nath Envirotech Engineers and file of work order No. 11, 25, 50, 85, 86, 100 relating to authorization of sole dealership given by M/s. GEO Miller & Co. Pvt. Ltd to M/s. Pacific Marketing & Engineering Company. Relevant witnesses were also examined. Though the FIR contained the name of six accused persons mentioned therein however, during investigation role of other three persons namely Sh. Hem Singh, Accounts Officer, Sh Jaipal Sharma, Accounts Officer and Sh. Rajender Prasad Sharma, Sr Accounts Officer, also surfaced.
7. The matter was investigated. During investigation, it was revealed that the general procedure of purchase and repair is that Firstly the requirement for purchase/ repair is identified by operating staff such as Foreman/Shift in-charge who reports the same to the concerned AE/EE. The requirement so reported is examined by JE Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 5 of 14 -6- and when found genuine is reported to AE, who himself or through EE sends the requirement letter to the manufacturer for checking needs of repair and in case of repair seeking the rates of the repairs/items to be purchased. After receipt of rates/quotation, estimate is prepared which is put up through a Note made in Estimates File. Thereafter necessary administrative, technical, financial approval with regard to the purchase/repair is obtained, thereafter the required work order is issued. After receipt of materials/repair works the same is entered into Stock Register/Job Register (for repair). The bill so submitted is verified and entered in Measurement Book (MB) and these two documents are sent to AE, who checks the same and recommends for payments to the firm by sending it to EE. Thereafter it goes to Jr Accountant (AAO) who checks the same and recommends for payment making an endorsement on the pay order. The cheque is finally signed by AO and EE. As and when the material so purchased is issued to operational staff for use in machinery/equipment the same is recorded in Stock Register and Log Sheet. In case of renovation/repair of proprietary machinery/equipment, to identify the work of repair/renovation a letter is issued to manufacturer to depute an engineer to visit the site where proprietary machinery/equipment is to be installed and to quote the rates and give techno commercial offer for the parts/spares to be used. After the joint visit of engineer from manufacturer or their nominated dealer and DJB representative, rates/labour required in such Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 6 of 14 -7- proprietary machinery/equipment is provided. After necessary administrative, technical, financial approval with regard to the purchase is obtained the work order is issued. After repair/renovation work is carried out the old material taken out of machinery is recorded in Old Material Register. After completion of renovation/repair work, the same is recorded in the Job Register. At this stage the firm submits its bill which is verified by the JE and is put up to AE and EE for payment, which is finally made by account section which keeps the record of job and payments.
8. Investigation revealed that the various instructional orders/guidelines issued from time to time by DJB, the DJB is required to observe the same while making purchases. There is Instructional Order dated 7/3/2003 issued by Chief Engineers (SDW) relating to procurement of spares which inter alia states that department will release payment only after written confirmation accepting the supply order along with a copy of order duly stamped and signed has been received by the EE from the manufacturer.
9. Instructional order dated 25.10.2004 issued by Member (W) of DJB, regarding supply /work order of Electrical and Mechanical wing lays down as under:- All the main equipments like pumps, motors, valves, transformers, starters, panels and their spares shall be procured from the manufacture or their authorized dealers only. The instructions issued by CE (SDW) vide instructional order dt.
Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 7 of 14 -8- 07.03.2003 are hereby reiterated for strict compliance once again. In cases where manufacturers/dealers do not respond or there is emergency, the approval from the concerned CE may be obtained on file for relaxing this condition. SEs shall pay their utmost attention in this regard and ensure that EEs under them do not violate these instructions. Further, all the the repair/over-hauling jobs shall be got done from manufactures or their authorized services centers. In cases where manufacturers/authorized service centre do not respond or there is emergent requirement, the approval from the concerned SE may be obtained to relax this condition. SEs shall further ensure that the repair/over-hauling works are outsourced by their EEs only in case, when the same is not possible by the maintenance staff posted with them and the job is not possible to be carried out in the departmental workshop. EEs shall take advance action in procurement of such important spares, so that the same are available at the time of breakdown/overhauling of equipment for ready replacement by maintenance staff, to eliminate the need of entire repair work being contracted out.
10. The Order dated 10.12.2009 issued by Member (W.S.) of DJB lays down that tenders are not required in case of purchase of proprietary item from the manufacturer or his accredited dealer. But in the event purchase is made from an authorized dealer and there are number of authorized dealers/service centre at a station, it is always desirable that tenders restricted to authorized dealers are invited so that a competitive rate is obtained.
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11. Instructional order dated 2/11/2004 is regarding obtaining procurement vouchers from contractor/supplier which was issued by then Director (F&A) Shri Ashish Kundra,(IAS). As per their orders original procurement vouchers must be obtained from the contractor and in case original procurement vouchers are for more items than supplied vide one voucher then consumption should be noted on original voucher and attested copy be enclosed with bills.
12. It is stated that investigation revealed that the work orders were given after approval from competent authority of the DJB. During joint inspection conducted during investigation concerned Sewage Treatment Plants (STP) and Sewage Pumping Stations (SPS) are found functional. As in case of Work Order No.06. Dated 19.05.2011 in respect of procurement of spares i.e. helical gear boxes of model No.VH2M225 of worth Rs.8,93,852/- for aeration plant at Vasant Kunj STP, it is stated that during joint inspection conducted during investigation it was revealed that present aeration plant consisting of 10 gearboxes with motor is found functional and its 9 units were in running condition, 1 unit was not running due to defect in electric motor. However, Sh. P. K. Sharma and staff informed that the said aeration unit got defected on 21.08.2015 and they also informed that without regular maintenance and without change of defective spares the functioning of gearbox is not possible. All the gearboxes are of Premium make duly supplied by M/s Premium Transmission Ltd., which is corroborated by Sh. Prabhat Kumar, Area Sales Manager, M/s Premium Transmission Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 9 of 14
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Ltd. Further the team observed 10 old gear boxes and dismantled spares in old material stores. Similar is the situation in respect of other work orders.
13. Further, it is also stated that investigation revealed that Sh. Prabhat Kumar, Officer Areal Sales Executive of M/s Premium Transmission Ltd. stated that the spares/ equipments of M/s Premium Transmission Ltd. are available in open market also, as they distribute the spares/ equipment through various dealers and these dealers may sell the material directly to customers or in open market. He also confirmed that rates for job work charged by M/s Nath Envirotech Engineers are reasonable.
14. With regard to the allegation of supply of material at exorbitant rates i.e. 4 to 5 times costlier than actual price by M/s Nath Envirotech Engineers & M/s pacific Marketing & Engineers, investigation revealed that material was supplied by M/s Nath Envirotech Engineers after procuring the same from M/s Sintex Industries Ltd, M/s Kirloskar Electric Co., M/s TIDC & M/s Premium Transmission Ltd, and from open market with or without purchase vouchers. The purchase price of DJB from M/s. Nath Envirotech also includes various additional cost besides the basic costs of material, which is CST @ 2%, freight charges from manufacturer's godown at Pune/Falta/Kalol to transporters' godown at Delhi, which roughly comes to 2% of invoice, insurance charges which roughly comes to 2% of invoice, Excise Duty @ Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 10 of 14
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10.3%, packing and forwarding charges. Besides the above charges on the above on the net prices of material the dealer incurs expenditures on transportation of material to his own ware house and their delivery at various sites, stocking of materials, pre and post sales services to the DJB along with technical expertise and providing guarantee for the spares for 1 year in which broken/defective spares are required to be replaced free of cost and various other incidental charges which are not given by manufacturer. Similar is the situation in respect of material supplied by M/s Pacific Marketing & Engineers.
15. Further, payments from DJB are received in a time period of 6-12 months on which dealer incurs interest on capital invested for purchase of spares. Dealer has to deposit 2% as EMD of order value which is not refunded till guarantee period of 1 year is over. As per condition of contract agreement dealer was required to supply the materials within specified period of work order failing which penalty of 1% of total contract amount for each day of delay was to be charged.
16. Investigation revealed that in below mentioned work order files i.e. work order No. 06, 07, 10, 21, 2445, 5062, 63, 74, 75, 90, 91, 94, 95 & 113 the bogus/fictitious purchase vouchers were found enclosed. Investigation revealed that the proprietor of the firms were examined and all of them stated that the copies enclosed in the work order files were not issued by them and they produced the Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 11 of 14
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bills vide which the material was supplied to the M/s Nath Envirotech Engineers and M/s Pacific Marketing & Engineers Co., however some of the firms remained untraceable. Investigation revealed that both the firms i.e. M/s Nath Envirotech Engineers and M/s Pacific Marketing & Engineers Co. have stated during interrogation that they have never submitted the purchase vouchers along with the bills, however no officer of the Delhi Jal Board deposed regarding the submission of fictitious purchase vouchers along with the bills to DJB by the firms M/s Nath Envirotech Engineers and M/s Pacific Marketing & Engineers Co.
17. Regarding the forged/bogus purchase vouchers the official of DJB were examined but as the file of work order keeps moving from one channel to another and the said vouchers were also not signed by the proprietors and as per the statement the responsibility cannot be fixed on the particular person.
18. Regarding the instructions relating to obtain purchase voucher, Shri K.S. Sharma, Jt. Director (Finance & Accounts) of DJB was examined. He clarified that the provision for taking original voucher is applicable when purchase is made from other than accredited dealers of a manufacturer or from open market. As in case of accredited dealers, the rates are provided by the manufacturer; therefore, there is no point in taking original voucher in such case. He has also clarified that essentially, the circular regarding obtaining original purchase voucher was issued more Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 12 of 14
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with intention to ensure genuineness of spares than to less cost of spares.
19. It is further stated that in view of the above stated facts and circumstances no criminal case is made out against the accused persons as there is no evidence to substantiate the allegations as mentioned in the FIR and hence this closure report is submitted before this court.
20. I have heard the submissions of Ld. PP for CBI and Investigating Officer and have carefully gone through the record.
21. It is very specifically stated in the closure report that all the work order/supply orders were given after taking all the necessary approval and sanction from competent authority of DJB and during joint inspection conducted during investigation concerned Sewage Treatment Plants (STP) and Sewage Pumping Stations (SPS) are found functional, which are not possible without regular maintenance and without change of defective spares. As regards the bogus bills, the responsibility of one individual official cannot be fixed as the files move from one channel to another channel.
22. Therefore, after going through the closure report and documents placed before me, statement of witnesses, I do not find any reason to differ with the conclusion of the Investigating Officer. Therefore, I am satisfy with the conclusion arrived at by CBI after investigation. Accordingly, closure report is accepted. The Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 13 of 14
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documents seized from the concerned department during the investigation be returned.
23. Original documents filed on record be returned to the IO against proper acknowledgment/receipt, so that the same may be handed over to the parties/ quarters from whose possession the same had been recovered.
24. File be consigned to Record Room after due compliance. Announced in open court today i.e. on 21.04.2016 (GURDEEP SINGH) Special Judge (PC Act): CBI-05 New Delhi : 21.04.2016 Closure Report No.10/15 CBI v. Surender Pal Singh Rana etc. Page No. 14 of 14