Vigilance Compedium - CCL

Case Study -01
BRIEF OF ALLEGATION
Following allegations in the form of a complaint was lodged against various officials of Area
and headquarters of the Company:
1) Illegal award of coal transportation from adjacent Projects to a Coal Washery at a higher
cost only to favour an Ex-Servicemen Transport Company at the cost of Company’s
exchequer.
2) Release of payment for coal transportation against a long route, while, in fact the
transportation was effected through a shorter route, etc., incurring intentional loss to the
Company and corresponding gain to the ESM contractor.
OUTCOME OF INVESTIGATION
Investigation by Vigilance Department revealed following grave irregularities as having been
committed by the various officials of the concerned Washery, Area and Company’s
headquarter, which are described below:
a. Company Headquarter took a decision to award the work of raw coal transportation from
an adjacent collieries to one of the Washeries situated at a distance of about 16 to 18
Kms. range to a civilian contractors no sooner than the existing transportation contract
being executed by an Ex-Servicemen Transport Company expired. To implement the
aforesaid decision, Company headquarter had issued necessary directives to the Area and
also to the Washery Project in advance, say about four months before the expiry of
running contract by Ex-Servicemen Transport Company to the following effect:
“To process the estimate for coal transportation to Washery Project from the
said adjacent Projects facilitating the headquarters to float NIT, finalize bids
received in response to NIT and to award the work to eligible party”.
b. The Area authorities did not take timely action to send the estimates on receipt of
aforesaid advice of the Company headquarters. The estimate for transportation of coal
was sent to Company headquarters after considerable delay. The said delayed estimate, as
sent by the Project/Area, was not immediately processed by the then Transport
Department (now known as Contract Management Cell); instead they raised number of
queries thereon.The delayed submission of the queries by the Project/Area to
headquarters culminated into such a situation that the contract period of running coal
transportation contract by the Ex-Servicemen Transport Company expired. In effect,
owing to non-award of fresh transportation contract, as envisaged earlier, there was then a
threat of not getting raw coal for washing at the concerned Washery.
c. In the aforesaid situation, the Area authorities issued letter of intent to the Ex-Servicemen
Transport Company (the earlier transporter) to continue coal transportation to the
Washery Project for one more year from the very next date of expiry of its earlier contract
with applicability of the previous rates of transportation. Simultaneously, the Area