Congress leader’s relative at centre of SCCL penalty evasion controversy

An alleged attempt by a contractor to avoid paying a penalty imposed by SCCL has come to light after a vigilance inquiry. Sources claimed senior officers tried to favour the firm, while officials denied wrongdoing and disputed the penalty amount.

Peddapalli: In an alleged financial fraud, a contracting firm, with the reported support of senior officers, attempted to avoid payment of a penalty imposed by the Singareni Collieries Company Limited (SCCL).

The management had allegedly decided not to collect the penalty as the firm is said to be owned by a relative of a senior Congress leader. However, the vigilance department reportedly unearthed the conspiracy after conducting an inquiry. Sources said senior officials, reportedly shaken by the vigilance findings, transferred the vigilance officer who probed the case and were allegedly making efforts to help the contractor by suppressing the report.

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Although the incident occurred a few months ago, it came to light only recently.

According to Singareni sources, a private firm, Varahi GKR JV, was awarded a contract for removal of overburden at the Indaramkhani open cast project in Mancherial district. However, SCCL reportedly suffered a loss of over one million tonnes of coal as the firm failed to achieve the target and removed only about 30 per cent of the overburden within the stipulated period.

Taking a serious view, SCCL is said to have imposed a penalty of around Rs 25 crore on the firm.

It was alleged that since the contractor is related to a senior Congress leader from Nizamabad, a senior Singareni officer intervened and constituted a committee, headed by an officer of General Manager rank, to favour the contractor. The committee head was reportedly earlier involved in a diesel scam in the Srirampur area.

As expected, the committee reportedly submitted a report in favour of the contractor and recommended waiver of the penalty by invoking the Force Majeure clause.

Vigilance officials, however, conducted a separate inquiry and concluded that the losses were caused due to the contractor’s negligence. A report to this effect was submitted to higher authorities.

The transfer of the vigilance officer who investigated the case has raised suspicion among Singareni officials. Some senior officers are reportedly considering helping the contractor by suppressing the vigilance report, sources said.

Countering these allegations, a Singareni official, speaking on condition of anonymity, claimed that the penalty amount was below Rs 10 crore. In such cases, contractors generally approach courts instead of paying penalties, he said, adding that vigilance officials do not usually intervene in such matters and that the contractor was no longer continuing the work.