Vigilance Compedium - CCL

General Manager also entered an agreement with the Ex-Servicemen Transport Company
even though the Area Authorities were not delegated powers to enter into an extended
contract involving more than one crore rupees. Such an arbitrary action was taken by the
Area authorities despite being aware of the fact that the per ton rate of transportation for
the same distance slab finalized by the Headquarters in favour of civilian contractor under
Comprehensive Tender was much less when compared to the per ton rate of
transportation cost paid / being paid against arbitrarily extended period of contract in
favour of Ex-Servicemen Transport Company in the subject case.The per ton
transportation cost came down further when fresh tenders were finalized and work was
awarded to eligible civilian party during the intervening period of extended contract in
favour of ESM company for one more year. In this view of the matter, the Headquarters
terminated the extended period of contract in half way to pave way for civilian
contractor to take up the work on the basis of work award. Such arbitrarily extended
period of contract at a higher rate of transportation resulted in financial loss to the
Company. Further, the action of Headquarters management in termination of the contract
dragged the Company to litigation by means of lodging a writ petition against the
Company by the ESM Company for breach of contract.
d. To further bring advantage to the ESM Company during the extended period of contract,
the Project Officers of the Washery on their part, failed to restore the weigh bridge that
was located very near to the unloading point even though the components required for its
restoration were procured by Washery even four months before the extended period of
contract. The said failure resulted in the coal laden ESM trucks to cover an extra distance
of 2 Kms. more to reach to another weigh bridge at a far off distance for weighment and
to return to the unloading site. Such inaction / failure of the Project caused financial loss
to the Company.
e. Even though the coal was transported through a shorter route from the adjacent Collieries,
the Project officials accepted bills for payment at the rates applicable for longer route and
thereby caused unauthorized payment.
PUNITIVE ACTIONS
a. Since some of the executives involved were of M-2 level Officers, the entire case was
referred to the CVC seeking their advice. All the responsible officials were proceeded
with major penalty proceedings as per CVC’s advice.
b. The charges leveled against responsible officials were established beyond doubt at the
enquiry and major penalty was awarded to the concerned executives who were in
employment at that point of time.
c. The HOD of transportation Department at the Headquarters, even though retired from
service, was awarded a penalty of ‘deemed dismissal’ by the Chairman, CIL.