Chennai: The Central Bureau of Investigation began grilling of senior Chennai Port Trust officials accused of working in cahoots with a private firm in auction of Iron ore and causing a loss of Rs 7.1 crore to the Chennai Port Trust.
A FIR was registered against Port Trust officials K. S. Nanda Kumar, assistant materials manager, K. Kumar, senior deputy materials manager, and A. Ayyasamy, materials manager, and three private firms in connection with the scam on Sunday based on a complaint from Chief Vigilance Officer of Chennai Port Trust T. Kandasamy.
According to the complaint, the said officials entered into a criminal conspiracy with private firms- MC Jain and associates, SYR infrastructre and Eastern Bulk trading and shipping limited. The port appointed assessor MC Jain had fixed the reserve price as low as Rs 400 per Metric Tonne (MT) while the market price was Rs 1,218 per MT. The total value of 1,32,300 MT was fixed at Rs 5.29 crore and through an e-auction held on December 30, 2016, the bid was won by SYR infrastructure who bid at Rs.681 per MT. However, the entire amount of Rs 9.09 crore was paid by the other accused, Eastern Bulk trading, according to the findings of the vigilance officer.
“The total value should have been Rs 16.11 crore, meaning a wrongful loss to the tune of Rs 7.1 crore was caused to the Chennai port,” according to the FIR.
