Kochi: A team of officials from the Central Bureau of Investigation (CBI) on Friday conducted raids at the residence and office of N. Ajith Kumar, assistant general manager, Cochin Shipyard Ltd (CSL,) in connection with an alleged fraud in Rs 1.55 crore scrap deal. Raids were also held at the office and residence of the scrap dealer, P.A. Mohammad Ali of South Indian Scrap Traders, Palarivattom. According to the FIR filed by the CBI Ernakulam unit Mr Kumar who was entrusted with the scrap deal conspired with Mr Ali and allowed the latter to collect the scrap without advance payment as stipulated by the contract.
Mr Kumar and Mr Ali are the first and second accused respectively in the case. CSL had decided to dispose of around 1,000 tonnes of ship repair steel scrap through e-auction in October 2016. The reserve price was fixed by a CSL committee at Rs 18,500 per tonne and subject to approval price at Rs 17,575 per tonne. The e-auction was cancelled as the highest bid of Rs 14,632 per tonne was lower than the reserved price and the STA. CSL then engaged a private valuer and he fixed a reserve price of Rs 12,418 per tonne and STA of Rs 11,797.
Based on this, auction was held in February this year and the highest bidder was South Indian Scrap Traders for an amount of Rs 14,622 per tonne. As per the contract, South India Scrap Traders was to make the total payment of Rs 1.55 crore in four installments and remove the scrap accordingly. The contract also stipulated that entire available quantity of scrap has to be removed in total. Mr Kumar however allowed Mr Ali to segregate the scrap and take out quality steel scraps.
