Monday, March 28, 2011

Indian [petro.com news 28th march 2011

March 28: While the jury is still out as to why the contract for the Authentix marker system was terminated, the CBI, in its recent findings, has observed lapses in the tendering process for the marker system. It may be recalled that the marker system developed by the British manufacturer, Authentix, and employed by the Indian oil marketing companies (OMCs) in late 2006, had proved to be of doubtful success. It was claimed that Authentix failed to live up to its claims and its marker had little success. An audit carried out of various samples of auto fuel from Retail Outlets (ROs) in 2007 revealed various marker test failures. Furthermore, an enquiry conducted by IOC`s vigilance department had detected that a brown chemical powder was being used to negate the efficiency of the marker system. In this backdrop, a CBI investigation was launched on the manner in which the marker was obtained without going through a proper tender process. In a recent advisory to the petroleum ministry, the CBI has made the following suggestion on how tendering should be done for acquiring marker systems in the future:
8In all procurement matters, proper global tender should be issued and not a global Expression of Interest (EOI)
8In case of issue of global EOI, it should only be used for academic purpose and should not be coupled with procurement process
8It is to be ensured that the bidding process invites healthy competition beneficial to the oil marketing companies (OMCs)
8The R&D department of the OMCs should be more professional in their approach and give clear recommendations with reason for their choices
8The officials visiting other countries to study the performance of marker should submit proper tour reports with supporting documents to the higher authorities

Thursday, March 24, 2011

Lessons on becoming HPCL director marketing
Vol 14, PW 19 (24 Mar 2011) - Politics & People
Eight months have passed since S. Roy Choudhury became chairman of Hindustan Petroleum. Yet the director marketing position he left behind is still empty, caught in the crossfire between supporters of two candidates battling to replace him: Nishi Vasudeva, 54, executive director in the company’s LPG business, based in Mumbai, who came first in PESB interviews on December 21; and Sudhakar Rao, 57, executive director ‘direct sales’, also based in Mumbai, who came second. Rao, we hear, has enlisted the help of three Congress MPs from his home state Andhra Pradesh, hoping their relationship with oil minister Jaipal Reddy, also a Congress MP from Andhra Pradesh, will help. One of the MPs, Suresh Shetkar, elected from Zahirabad, confirms to this report he wrote to Reddy in February, asking the minister to overturn Vasudeva’s selection, claiming she does not have the minimum two years marketing experience needed to apply for this high-profile post. “I met Jaipal Reddy also,” Shetkar tells this report. “Rao has more than seven years marketing experience. Injustice should not happen to him.” Shetkar adds: “I am trying to help Rao. He is a very old family friend; he helped my brother.” Asked to respond, Rao said: “I don’t know this MP (Shetkar). And I don’t know his brother.” Denials aside, Rao supporters argue Vasudeva joined HPCL’s marketing division only a year ago in February 2010, falling short of the two-year mandatory experience. “But (chairman) Roy Choudhury supports her,” says a Rao supporter. Friends of Vasudeva, a graduate of the prestigious Indian Institute of Management in Kolkata, counter this by saying her PESB selection was made on merit. “She did well in the interview,” we hear. “That’s why she came first. All her papers are in order.” HPCL’s director marketing post is vacant since August 1 last year when Roy Choudhury became CMD.


NOTE: Congress MP Suresh Shetkar confirms to this report that during his meeting with Reddy the oil minister promised to review Vasudeva’s selection and consider Rao for the position. This might explain the delay in any formal announcement, as Reddy is fast gaining a reputation as a slow decision-maker, particularly on sensitive PSU appointments. If selected, Vasudeva would become the first woman full-time director on a state-owned oil company board. Eighteen candidates submitted CVs by last year’s October 18 deadline. Fifteen were shortlisted, among them seven internal HPCL candidates, including AB Thosar, an executive director in the pipelines and projects division; MS Damle, an executive director in the retail division; YK Gawali, an executive director in the distribution division; and two (lower rank) general managers.

Monday, March 21, 2011

Chronological Events of the case
28.4.2008 All India CEC of HPMSA resolved against the appointment of Sanjay Grover as CEO of HINCOL . He was appointed 3 grades higher and he had resigned from HPCL 2 years before.
5.5.08 C& MD , HPCL, Arun Balakrishnan refused to review his decision in a CEC meeting
6.5.2008 400 HPCL officers gheraoed Ashok Singh& R.P.Sriavstava at HPCL’s Mumbai refinery colony in H.P.Nagar east , chembur while they were on their way to office and demanded that Dir-HR,GM-HR be called and discuss the appointment of Sanjay Grover.Dir-HR,GM-HR came to colony for one-to-one meeting with officers. Association leaders were called to Marketing Head office in Ballard Estate @5 P.M and minutes were drafted.GM-HR assured that same will be signed by Dir -HR and handed over next day since Dir-HR was away to Delhi.
7.5.08 Ashok singh & R.P.Srivastava were issued charge sheet for instigating officers for agitation by way of sending emails, they were President and Treasurer of the HPMSA&OSOA respectively. They had opposed Govt. against Privatization of HPCL/BPCL and won the case from Supreme court.
12.5.08 Ashok Singh & R.P.Srivastava filed CBI complaint before Regional Director Mumbai against Secy Petroleum MOP&NG, Authentix&SGS (suppliers ) for Rs. 200 cr. Irregularity in procurement of Marker system under implementation by OMC’s for checking adulteration of kerosene in Petrol/ Diesel.
16.5.08 Ashok singh suspended within 4 days of filing above complaint by framing him in a misappropriation case at one one of the Retail outlets in his area , he was in charge of 140 such outlets.
27.5.08 demanded “whistle Blowers protection “as per Govt. of India’s resolution from CVC and a meeting fixed with VC Sudhir kumar on 6.6.08.
4.6.08 Times of india News “crack down on fuel mafia’
6.6.08 Met VC sudhir kumar and appealed to him for getting us whistle blower’s protection
11.6.08 R.P.Srivastava issued a charge memo by HPCL for displaying some Technical committee report on Association Notice board on 6.6.08(while he was in Delhi with VC). This report was available on petroleum sector website indianpetro.com since 21.5.08
16.6.08 PIL NO.60/2008 filed by NAPM activist Simpreet singh in Mumbai High Court by Adv. Shri Y.P.Singh.
21.6.08 HPCL derecognized HPMSA and coerced /threatened officers to resign from Association membership, they obtained a letter from Registrar’s office that Association was de registered.
23.6.08 HPCL instituted enquiry in 7.5.08 charge sheet and appointed one retired HPCL officer as Enquiry officer , both the officers vehemently opposed his appointment since they have had heated debates with him in joint HR committee in 1998, and his fairness was doubtful.
29.6.08 HPCL Board recorded in their minutes that Association leaders will be fixed and taught a lesson for instigating officers
7.7.08 HPMSA filed case against deregistration in labor court Bandra east
16.7.08 HPCL instituted enquiry in 7.5.08 charge sheet and both the officers once again strongly opposed Enquiry officer’s appointment.
21/22.07.08 Ashok singh & R.P.Srivastava met VC sudhir kumar again and advised him of the torture and humiliation
24.7.08 HPCL issued charge memo for sending a mail message to his OSOA members that “Today marker PIL was heard in Mumbai High Court’.
30.7.08 Once HPCL Board resolved to fix the Association leaders in their meeting on 29.7.08
30.07.08 R.P.Srivastava was issued another charge sheet for the charge memo of 11.6.08 i.e display of technical committee report on HPMSA notice board.
7.8.08 Both officers met 3rd time VC Sudhir kumar and pleaded his intervention in their ongoing ordeal of charge sheet/charge memo’s humiliation and atrocities.
10.9.08 R.P.Srivastava issued one more explanation letter.
25.09.08 R.P.Srivastva filed writ petition No. 2254/2008 in Mumbai high court for quashing the enquiry in view of illegalities and bias of enquiry officer.
1.10.08 Mumbai high court ordered and granted liberty , for approaching in the event of adverse order from HPCL in the 7.5.08 charge sheet and enquiry case
5.10.08 Indian express news item confirmed that marker launched by MOP&NG and OMC’s was not tamper proof and could be laundered by ordinary clay.
23.10.08 Hon’ble Mumbai high court ordered CBI enquiry in the Marker PIL no. 60 and also an independent enquiry by Vigilance dept tog MOP&NG
31.10.08 CVC rejected appeals of both the officers and stated in their order that “ they cannot be given whistle blower protection and job related and shall be treated as plain complainant
10.11.08 Enquiry officer abruptly concluded the enquiry , declining charged officer’s request of summoning Dir-HR and GM HR , IT&S officer of HPCL .
21.11.08 R..P.Srivastava enquiry commenced in 2nd charge sheet dt. 30.7.08, his salary deducted for October 2008 , conveyance reimbursement stopped, evicted from his office , assistance removed and made to sit under stairs case.
24.12.08 Indian express news regarding irregularities in the marker procurement , no success in checking adulteration and marker system was abruptly withdrawn by MOP&NG and OMC’s w.e.f 31.12.08
31.12.08 Marker system removed across the country and Rs. 200 cr. Of public exchequer sunk.
7-9.01.09 OSOA went on 3 days All India strike against strike against salary revision HPCL officers did not participate even then HPCL suspended R.P.Srivastava alleging him instigation of officers though he himself was on duty for all the days during strike.
25.2.09 Enquiry officer submitted his report disciplinary authority sent letter to Singh& Srivastava for their reply
28.02.09 srivastava issued 3rd charge sheet for suspension of 9.1.09.
12.03.09 Both the officers were dismissed from services of HPCL without allowing them even statuary 15 days to reply Enquiry officer’s report.
27.03.09 Both the officers filed their statuary appeal before the appellate authority i.e AFD(All functional directors) against dismissal order.
29.4.09 CBI filed PE NO. 0001in the marker case against Secy. Petroleum, Authentix & SGS and unknown officials of OMC’s.
22.6.2009 Times of India news that HPCL ‘S own R&D advisor had mentioned as early as in Jan 2005 in the Petrotech. Seminar in New Delhi that marker introduced was carcinogenic(may cause cancer among human being)in nature
15.7.09 R.P.Srivastava’s appeal rejected by AFD .
2.8.09 R.P.Srivatsava evicted from the company accommodation.
31.8.09 HPMSA’s registration restored by Registrar of Trade unions consequent to the order of the labor court dt. 3.4.09.
21.09.09 CN-IBN exposed entire marker scam and all irregularities in its procurement , and stated that Authentix was a black listed company abroad with the name BIOCODE . It also mentioned that CVC has ordered CBI to investigate the charges against senior Ministry officials .
1.10.09 HPCL rejected Ashok Singh’s appeal also and modified R.P.Srivastava’s order from dismissal from service to “removal from service” hence no bar on future employment.
23.04.10 Ashok singh & Srivastava filed their writ petition in Mumbai High Court Nos. 2106&2207 respectively against their order of Removal from Service.
19.8.2010 CBI in their report found the CBI complaint by us was correct and MOP&NG issued advisory to all OMC Chairmen to be cautious in future procurements .
7.9.2010 Writ Petitions of R.P.Srivastava & Ashok Singh admitted in Mumbai High Court
22.11.2010 Shri shri Prakash Director MOP&NG admitted in a RTI reply to R.P.Srivastava that Ministry is still investigating the Marker case.
19.1.2011 Murli Deora removed from Ministry of Petroleum
Bench:-Bombay
________________________________________
Lodging No.:- WPL/990/2010 Filing Date:- 23/04/2010
________________________________________
Petitioner:-
Respondent:-

Petn.Adv.:-

District:- MUMBAI
________________________________________
Bench:- DIVISION
Status:- Admitted Category:- WRIT PETITION (TAX)
Last Date:- 07/09/2010 Stage:- WRIT PETITION FOR ADMISSION
Last Coram:- HON'BLE SHRI JUSTICE D.K. DESHMUKH
HON'BLE SHRI JUSTICE N.D. DESHPANDE
________________________________________
Act :- Service Matter
________________________________________
[TO BE PUBLISHED IN GAZETTEOF INDIA, EXTRAORDINARY PART II, SECTION 3, SUB-SECTION(i)]

MINISTRY OF PETROLEUM AND NATURAL GAS

ORDER

New Delhi, the 12th January 2007
GSR.19(E). In exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955 (10 of 1955), the Central Government hereby makes the following order further to amend the Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993, namely:-
1. (1) This Order may be called the Kerosene (Restriction on Use and Fixation of Ceiling Price) Amendment Order, 2007.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993(herein after referred to as the said order), in clause 2,-
(i) after item (g), the following shall be inserted, namely:-
‘(ga) “marker” means a chemical substance approved by the Central Government from time to time for blending in kerosene and other petroleum products with the objective of preventing their diversion or adulteration of motor spirit or high speed diesel and other petroleum products’;
(ii) after item (k), the following shall be inserted, namely:-
‘(ka) “test kit” means a set of equipment used to determine the presence of marker in kerosene, motor spirit, high speed diesel and other petroleum products’; .
(3) In the said order, after clause 8, the following clause shall be inserted, namely: -
“8A. Kerosene to be blended with marker – All kerosene sold in India, whether under the public distribution system or parallel marketing system, shall be blended with marker at five parts per million (ppm) concentration with the objective of preventing its diversion or adulteration of other petroleum products.”


(4) In the said order, in clause 9, in sub clause (a), in item (iii), after the word “procedures” the following shall be added, namely:-
“draw and test samples of the product with the aid of test kit to determine blending of marker in kerosene.”.
[File No.P-11013/5/2006-Dist]

(D.N. NARASIMHA RAJU)
JOINT SECRETARY TO THE GOVERNMENT OF INDIA

Note: The principal Order was published to the Gazette of India vide GSR 584(E) dated the 2nd September, 1993 and subsequently amended vide
(1) GSR 509(E) dated the 19th June, 1995
(2) GSR 126(E) dated the 8th March, 1996
(3) GSR 638(E) dated the 21st October, 1998
(4) GSR 105(E) dated the 22nd February, 2001
(5) GSR 405(E) dated the 6th July, 2006
MARKER CASE
Adulteration in the motor fuels (Petrol& Diesel) has been a menace for MOP&NG since a very long time, precisely due to artificially keeping low price of Kerosene .Price of PDS kerosene has not been revised for more than a decade to keep the vote bank of BPL users intact by respective governments, such artificially low price has made adulteration of motor fuels like petrol/diesel with this PDS Kerosene a lucrative trade. Late Manjunath Sales officer of Indian oil was murdered while checking adulteration at a Petrol pump in U.P.
Government tried several methods to curb it, and colored (blue dyed)PDS kerosene , anti adulteration drives were carried out but adulteration kept flourishing due to the differential of kerosene price and rising price of motor fuels. By a study of NCEAR it was established that 38% of Kerosene is diverted and used for adulteration by Petrol/diesel pump owners with the support of transporters and even oil company officials.
MOP&NG formed a committee of Top oil company officials and sent them abroad to study and suggest a suitable Marker , which can detect adulteration in motor fuels, such ‘markers’ are used in south Africa, Malaysia and many other countries to check adulteration due differential pricing or subsidized fuel etc. Committee finally zeroed down on few suppliers of markers , out of which M/s Authentix was hand picked by ministry officials for supplying marker to oil marketing companies IOC/BPC/HPC , such decision was taken without even conducting a Pilot study. Oil companies were advised to procure the marker from Indian agents of above supplier M/s SGS Ltd on a single offer basis. There was such a tearing hurry to implement marker system that no formulation, specification , chemical composition or Environment impact was studied /verified or compared. MOP&NG even amended the MDG( Marketing discipline guidelines) to empower the private company personnel to check /Inspect Retail outlets for the presence of marker (adulterated by marker doped kerosene), across the country.
Then secy. Petroleum ordered the oil companies in July 2006 to implement the Marker system expeditiously and oil companies placed purchase orders in Aug. 2006. The inauguration and Public demonstration of Marker system was carried out by Minister of Petroleum Sh. Murli Deora, Secy. Petroleum M.S. Srivnivasan , Dealers Association President shri, Ashok Badhwar, local MP Sh.. Sajjan kumar on 4.10.2006 at Indian oil’s Bijwasan Terminal, Initial order by oil companies was placed for 1 year till Sept 2007for approx. Rs. 100 crore .
Oil sector Officer’s Association convener Ashok Singh and coordinator R.P.Srivastava were approached by Marketing officers of oil companies and complained that Petrol pump owners were subjected to Extortion by the Private company SGS in the name of inspection /checking of Marker .OSOA mandated one leading Advocate of Mumbai to obtain all procurement details of Marker system in Nov. 2007 through RTI while the supply contract of Marker was extended for 6 months i.e up to March 2008, after initial denial even by MOP&NG , advocate received all the information in May 2008.
Ashok singh & Srivastava made a formal complaint to Joint Director CBI, Mumbai in May 2008, in a quick retaliation Ashok Singh was promptly suspended within 4 days of filing the complaint by implicating him into a false charge, they both approached CVC(central vigilance commissioner) personally in June, July& Aug. 2008 , for whistle blowers protection, which was declined and all their correspondence was shared with HPCL Management who swiftly removed Srivastava’s all assistance, evicted from his office and made to sit under stair case, his perquisites were stopped and even deducted salary. MOP&NG ordered oil companies to extend the contract of SGS till Dec. 2008 and total Marker worth Rs. 200 crore was purchased all on single offer.
PIL no. 60 was filed in Mumbai High Court in June 2008 by a social activist Sh. Simpreet singh , which was decided in Oct. 2008 , Hon’ble Mumbai High court ordered CBI to investigate whole Marker scam and ordered MOP&NG separately to conduct enquiry by Ministry’s Vigilance dept.One Indian express report in Oct 2008 confirmed that the Marker was removable/launderable by ordinary clay.HPCL looking for some excuse to remove Srivastava who was suspended in Jan 2009 , again by falsely implicating him into OSOA’s strike from 7-9th Jan. 2009, HPCL had incidentally not participated in that strike , and himself was on duty during the strike days. In the meantime MOP&NG abruptly advised all oil companies to stop marker doping w.e.f Jan 2009 without assigning any reason.
Times of India report in June 2009 , confirmed that HPCL ‘s own R&D advisor had confirmed as early as in Jan. 2005 that the Marker is carcinogenic in nature (could cause cancer in human being).Finally CBI filed a PE in Marker case in April 2009 against then Secy Petroleum , SGS, Authentix and unknown oil company officials .According to CNN-IBN News on 21st sept 2009 , CVC has also ordered CBI to conduct enquiry against Senior Petroleum ministry officials , News also confirmed that Authentix was already a black listed company abroad with the name “Biocode” Marker was purchased at the price of Rs. 13000 per ltr. and there was no basis for procuring marker at such an exorbitant price
Ashok Singh & Srivastava were removed from services of HPCL in March 2009. Srivastava was evicted from company accommodation in Aug 2009 after facing insult and humiliation by HPCL management for 15 months . This is all done by HPCL who claim themselves to be Model Employers being a Govt. of India undertaking, Claiming themselves pioneers in the field of HR for their HR practices like Emotional Intelligence/Performance Management , competence mapping etc. etc.
Despite High court/CVC orders no visible action appears to have been taken by CBI?
Public admission by CVC in the news item of Indian Express of 30th Dec. 2009 , that corruption has reached at the highest level in the Government and specially mentioned the Names of Ministry of Petroleum , power and others and how long people of this country will continue to pay artificially high price of fuel and subscribe to the govt. propaganda that OMC’s are losing so many crores every day and add to the prosperity of corrupt officials and adulterators?
ALL ABOUT MARKER A NEWS ITEM FROM INDIANPETRO.COM
Reply


ravi srivastava

show details 1/1/09
Marker issue come to an end

31st December, 2008 It seems the government has decided not to renew
an agreement with Authentix to ferret out marker-blended kerosene used
for adulterating diesel and petrol. The two-year deal has been given
a quiet burial on December 31, 2008.
So has the market system, introduced for the first time in the
country, been successful? Prior to introduction of the marker
programme, the government estimated approximately a third of kerosene
was illegally diverted. Since the launch of the programme,
international third party certification agency, SGS, which was
mandated with the task of inspecting more than 175,000 retail outlets
across India, positively identified more than 950 sites with
adulterated fuel which subsequently either have been either shut down
or remained under investigation.
There are many who were critical of the marker based
anti-adulteration programme. They claimed that the hit rate was very
low compared to the scale of adulteration across the country.
But apologists for programme were of the view that the threat of
detection brought down the level of adulteration in the country. "The
increased threat of capture has meant that many more retailers have
ceased illicit activities and remain ?on alert? that they can be
caught and punished and subsequently the catch rate has fallen from
40-60 sites per month to 15-20 sites caught per month. The high strike
rates of 2.8% for retail sites and 0.5% for retail audits and
subsequent closures can be attributed to the robust marker technology
that enables detection at very low levels of adulteration together
with the expert testing skills of more than 250 trained SGS auditors,"
sources close to SGS told this website.
Background:

The Marker Programme was launched in October 2006 by the Ministry of
Petroleum and Natural Gas to identify and control diversion of
subsidized kerosene intended for the underprivileged from the PDS
(Public Distribution System) to road fuel.

Prior to the Marker Programme the Government estimated approximately a
third of kerosene was illegally diverted although only a few sites
were caught adulterating. Since the Marker Programme, SGS has
inspected more than 175,000 retail outlets across India and positively
identified more than 950 sites with adulterated fuel which
subsequently either have been either shut down or remain under
investigation. As the Marker Programme became more successful, the
increased threat of capture has meant that many more retailers have
ceased illicit activities and remain ?on alert? that they can be
caught and punished and subsequently the catch rate has fallen from
40-60 sites per month to 15-20 sites caught per month.

The high strike rates of 2.8% for retail sites and 0.5% for retail
audits and subsequent closures can be attributed to the robust marker
technology that enables detection at very low levels of adulteration
together with the expert testing skills of more than 250 trained SGS
auditors.

The Marker Programme has received formal acknowledgement and
significant praise for successfully identifying malpractice,
increasing road fuel sales, reducing diversion of kerosene and as a
consequence increasing kerosene to the poor.

?Up to the end of this year, the programme remains on track, retail
sites are getting caught and when proved guilty terminated by the
OMC?s and there is high overall commitment of the Ministry and OMC?s
to punish those involve in this illegal activity? commented SGS
Director Sundip More,


?We are grateful to have been part of the success of the marker
Programme and particularly the achievement of increasing PDS kerosene
to the poor. In readiness for the new tender, Authentix will continue
to upgrade and enhance the components in our multi-layered suit of
marker technologies to ensure we deliver improved performance for the
new Programme?. said Lal Pearce, Authentix, Executive Vice President.

Free rein to adulterators soon
NEW DELHI, Dec. 29: The innovative "marker" system, which had been
implemented two years back by the UPA government to check the Rs 5,000
crore worth diversion of public distribution scheme kerosene for auto
fuel adulteration, is being given a quiet burial on 31 December.
An indication in this regard was given when a ministry spokesman said
that ?no official decision has been taken on its continuation?. Ms
Cari J Weinberg, spokesperson for Authentix, the current British
supplier of the marker, confirmed this. ?Our contract will expire on
31 December, 2008. It has not been renewed so far,? she said.
The scheme, launched in October 2006, provided for introduction of a
permanent marker in kerosene on an all India basis. If the
marker-blended kerosene is used for adulterating auto fuels ~ diesel
or petrol ~ it can easily be detected through a visual test procedure
using a special testing kit. With the marker?s presence, adulteration
even with very low levels of kerosene can be detected.
The system was introduced after the murder of a Lucknow-based Indian
Oil Corporation official, Shanmugham Manjunath in November 2005 after
he conducted a surprise raid at a petrol pump selling adulterated
fuel, an episode that shook the nation and highlighted the menace of
the oil mafia.
The government?s decision has come as a surprise to many including
those working in the NGO sector, who have been waging a battle against
the oil mafia. In fact, the petroleum ministry had assured the Mumbai
High Court only in September that it would complete the tendering
process for continuation of marker system on permanent basis by 31
December.
According to Shama Khan, president of Sahara Kalyan Samiti, an NGO
working in the resettlement colonies, the government?s decision, even
if temporary, will open the flood gates for diversion of PDS kerosene.
?We have observed definite improvement in the availability of PDS
kerosene after the introduction of the marker system?, she said.
According to ministry sources, some sections of unscrupulous petroleum
dealers and transporters, were lobbying hard to get the order amended
permanently or at least make a fast buck while the process for a fresh
tender is on.
A study in 2005 sponsored by the petroleum ministry had found that
38.6% of PDS kerosene meant for the poor was being diverted, among
other things, to adulteration of transport fuels.
HC notice to govt on marker system abolition

Statesman News Service
NEW DELHI, Dec. 30: A vacation bench of the Delhi High Court has
issued notice to the petroleum ministry and oil marketing companies
(OMCs) on the move to abolish the kerosene "marker system" by 31
December. They have been asked to reply by 7 January 2009.
The court notice came after a public interest litigation (PIL) by an
NGO challenging the government's decision to go ahead with this move
which the petitioner said would hurt the interest of the common man.
The petition was filed following reports that the government "planned
to give the scheme a quiet burial" and the petitioner said the
decision of the government was "a surprise to many including those
working in the NGO sector, who have been waging a battle against the
oil mafia". The scheme was launched in October 2006 and provided for
the introduction of a permanent marker in kerosene on an all-India
basis which was to be carried out by OMCs at their terminals and
depots.
The petroleum ministry had assured the Mumbai High Court in September
that it would complete the tendering process for continuation of the
marker system on permanent basis by 31 December this year.
The petitioner said that if the marker system is removed, it would led
to adulteration of auto fuels which would not only damage automobiles
but also have adverse environmental impact.
The 'marker' system was introduced by the government after the brutal
killing of Shanmugham Manjunath, a Lucknow-based Indian Oil
Corporation official, after he conducted a surprise raid at a petrol
pump in Lakhimpuri Kheri selling adulterated fuel in November 2005.
The UPA government had launched this scheme with much fanfare in 2007
to check the Rs 5,000 crore worth diversion of public diversion scheme
(PDS) kerosene for auto fuel adulteration
About SGS
The SGS Group is the global leader and innovator in inspection,
verification, testing and certification services. Founded in 1878, SGS
is recognized as the global benchmark in quality and integrity. With
more than 53`000 employees, SGS operates a network of over 1?000
offices and laboratories around the world.
About Authentix
Authentix is the global leader in authentication and provides brand
protection solutions for the oil and gas, pharmaceutical, consumer,
tobacco, spirits, and agrochemical industries, as well as fiscal tax
recovery and security services for governments worldwide
[+] 115 recent
UK firm gets contract; India gets bad deal
Sumon K Chakrabarti , CNN-IBN
Posted on Sep 21, 2009 at 21:29 | Updated Sep 21, 2009 at 22:02


6Share
New Delhi: The Petroleum Ministry wrongly favoured a company in the United Kingdom for supplying fuel markers that were to be used by Indian authorities in detecting fuel adulteration, a CNN-IBN investigation has found.
The Ministry in October 2006 started a project to dye kerosene with a non-removable marker to detect adulteration of automobile fuel. The marker was supplied by the Authentix company, which claims to be a global leader in authentication, at an annual cost of Rs 200 crore.
Within 15 months the project was scrapped and the Central Vigilance Commission (CVC) allegedly found irregularities in the deal with Authentix.
The Central Bureau of Investigation (CBI) last month received a CVC report which points to a high-level scam within the Petroleum Ministry. The report alleges the Authentix marker was selected though tests had revealed that the company’s marker could be tampered with.
The CVC report alleges Authentix was selected for the project arbitrarily and by disregarding norms for issuing contracts. A tender was issued on 28th April 2004 but 20 days before that, on 8th April 2004, three companies were already rejected because their marker was allegedly not tamper-proof.
Authentix was allowed to increase its rates by 55 percent and it was selected for the project--international competitive prices were allegedly never checked.
The cost of the earlier fuel marker was Rs 2,550 per litre, but Authentix sold its product for Rs 13,219 per litre.
The CVC have found that Authentix earlier operated under the name Biocode, which the Petroleum Ministry had rejected because its product failed to meet standard requirements.
The CVC has found that it was decided that the Authentix marker was to be first tried out in New Delhi, but the then Petroleum Secretary M Srinivasan allegedly gave abrupt and oral orders that it would be used across India. The order was allegedly given though marker had failed in the trial stage.
Srinivasan and R S Pandey, who is the current Petroleum Secretary, refused to comment on the allegations against the Ministry. CNN-IBN has learnt that the CBI is planning to question senior Ministry officials about the deal with Authentix.

Sunday, March 20, 2011

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show details Feb 28
Aiyar sets off a controversy claiming bribing is routine in oil ministry
Submitted by Prashant Duggal on Mon, 02/28/2011 - 05:16
Months after Ratan Tata claimed an aviation minister asked him for a bribe of Rs 15 crore, Congress leader Mani Shankar Aiyar on Monday said he was offered Rs 35 crore in the first five weeks as petroleum minister in 2004.

Participating in a pre-budget discussion on a private news channel, Shankar accused big companies in India of trying to actively bribe politicians.

"A car pulled up outside my wife's office. A man came out and laid a bag on her table and when she asked 'what is this,' the man said, 'this is three crores (rupees). There is another 2 crore in the car," he said.

Petroleum ministry is notorious for corruption, partly due to the nature of the oil industry -- globally recognized as one of the most ruthless and corrupt.

Long time petroleum minister Murli Deora, who was accused of batting for Mukesh Ambani in the Ambani-vs-Ambani dispute in the Supreme Court, was moved out a month ago in a cabinet reshuffle.

Rumors put the reason for his delay in gving approval to the sale of Cairn Energy by the influential business man Bill Gammell, chairman of Cairn Energy. It was alleged that the sale deal was being held up for reasons not entirely legitimate.

Though Deora's ministry leaked off-the-record statements to the media immediately before the reshuffle hinting that the Cairn deal will be allowed to go through, he was moved to the relatively harmless ministry of Corporate Affairs.

Corporate baron Anil Ambani had also accused Deora's ministry of allowing elder brother Mukesh Ambani's Reliance Industries misappropriate a natural resource like KG basin gas.

Aiyar's statements are similar to those made by Ratan Tata about demands for bribes in exchange for an airline license. Tata's statements caused a furore, with many TV channels speculating at length about the minister who made the demand. Some former aviation minister even came out with denials that they were the ones.

http://rtn.asia/129_aiyar-sets-controversy-claiming-bribing-routine-oil-ministry

CVC complaint status

Status is same till date
Central Vigilance Commission
Status of Complaint Lodged

Dated: 15/6/2010

As per the complaint handling procedure all complainants whose complaints have been sent for action and report by the Commission to the concerned organisation, will be informed about the status of their complaint through the web site of the Commission. The Complainant will also receive a specific acknowledgement no. through which he can login and see the status of the complaint. This is being implemented immediately for all complaints received in the Commission after January 1st, 2005. Progressively, earlier complaints will also be made accessible for information by the complainant.

Generally reports on the complaints sent by the Commission for investigation, are expected by the Commission within a period of three months. Subsequent disciplinary action by the concerned Disciplinary Authority takes around six months. Imposition of penalty takes a further period of three to six months. All the complainants are requested to keep the above time frame in mind while accessing for status of their complaints.

Status of Complaint No: 1605/09/6

Date: 15/6/2010

Sent to CVO for Investigation/Action Taken Report on date : //

CVO RECOMMENDATION REPORT NOT YET RECEIVED
सुप्रिया रॉय
डेटलाइन इंडिया
नई दिल्ली, 4 जून- भारत सरकार की नवरत्न कंपनी तेल और प्राकृतिक गैस निगम यानी ओएनजीसी ने एक नहीं, सोलह खतरनाक सौदे किए जिनसे देश को अरबों रुपए का घाटा हुआ। ओएनजीसी का बस चलता तो इन घोटालों को वह छुपाए ही रहती लेकिन सूचना के अधिकार के तहत केंद्रीय सूचना आयोग ने उसे सच बोलने पर बाध्य कर दिया। मगर ओएनजीसी की बेशर्मी यह है कि उसने जिन चौदह कंपनियों में अपना पैसा डुबाया था उनके नाम केंंद्रीय सूचना आयुक्त को भी बताने से इंकार कर दिया। जो जानकारी हमारे पास उपलब्ध है उसके अनुसार चार कंपनियां तो रिलायंस की है और उधार तब का भी है जब धीरूभाई अंबानी जिंदा थे। ब्याज मिला कर यह रकम अरबों रुपए तक पहुंच जाती हैं।

हिंदुस्तान पेट्रोलियम कॉरपोरेशन लिमिटेड - एचपीसीएल की तरह ही बगैर बैंक गारंटी या किसी भी तरह की गारंटी लिए जैसे एचपीसीएल ने मुरली देवड़ा के दोस्त विजय माल्या को धन्य किया था वैसे ही ओएनजीसी ने अंबानियों और दूसरी कंपनियों को धन्य किया।

यह घपले राजीव गांधी के जमाने से शुरू हुए थे और अटल बिहारी वाजपेयी की सरकार तक चलते रहे। बेशर्मी की हद यह है कि ओएनजीसी के तत्कालीन मुखिया रहे सुबीर राहा जब रिटायर हुए तब भी उन्होंने इन घपलों की जानकारी किसी को नहीं दी। अपनी कार्यभार सौंपने की रिपोर्ट में भी उन्होंने इसका कोई जिक्र नहीं किया। छुपाने की भी एक सीमा होती है मगर ओएनजीसी लगातार यह सीमा लांघता रहा है। ओएनजीसी के भूतपूर्व निदेशक मोहन रेड्डी ने कहा है कि जब हम अपनी गलती मान चुके हैं तो हमसे नाम बताने के लिए क्यों कहा जा रहा है? इससे तो पैसा वसूलने की हमारी सारी संभावनाएं ही खत्म हो जाएंगी।

ओएनजीसी भारत सरकार की ओर से भारत में निकलने वाले सभी प्राकृतिक तेल और गैस पदार्थों की मालिक हैं और इसी के आधार पर वह जिसको चाहे गैस आवंटित कर सकती है। मगर आवंटन के भी कुछ नियम होते हैं जिन्हें ओएनजीसी ने सरेआम और बहुत निर्लज्ज भाव से तोड़ा। वर्तमान पेट्रोलियम और रसायन मंत्री मुरली देवड़ा को अपने मित्रों पर उपकार करने से फुरसत मिले तो वे दूसरे विभागो में हो रहे घपलों के बारे में पता लगाएं।
Alok Tomar सद्दाम हुसैन से रिलायंस ने कितना कमाया?
आलोक तोमर
यह शायद रिलायंस के गोरखधंधों में सबसे बड़ा खुलासा हैं। कम लोग जानते हैं कि संयुक्त राष्ट्र के ऑयल फॉर फूड के मामले मंे सद्दाम हुसैन से तेल लेने वाले घोटाले जिसमें तत्कालीन विदेश मंत्री नटवर सिंह को कांग्रेस से निकाल दिया गया था, में रिलायंस भी शामिल है। नटवर सिंह पर जितन...ा तेल लेने का आरोप लगा हैं उससे लगभग सात गुना ज्यादा तेल अंबानियों को मिला।
वोल्कर कमेटी की रिपोर्ट में सद्दाम हुसैन द्वारा दिए गए इस तेल के दाम में नटवर सिंह, उनके बेटे जगत सिंह और एक रिश्तेदार अंदलीव सहगल के नाम थे और कई भारतीय कंपनियों को लाभ मिलने की बात भी कही गई थी। इस घोटाले में नटवर सिंह ने कहा था कि वे कांग्रेस के लिए पैसा जुटा रहे थे और उन्हें बर्खास्त कर दिया गया।
मगर इस मामले की जांच के लिए जब कमेटी बनाई गई और भूतपूर्व न्यायमूर्ति आर एस पाठक को उसका अध्यक्ष बनाया गया तो उन्हें जांच के लिए सिर्फ नटवर सिंह और उनके सहयोगियों के कारनामांे की पड़ताल करने का आदेश दिया गया। सरकार में अपने शानदार संपर्कों की वजह से अंबानी का नाम भी इस जांच में नहीं आया। एक अशद खान भी अभियुक्तों में शामिल थे जो इंदिरा गांधी के जमाने में बहुत ताकतवर रहे मोहम्मद युनूस के रिश्तेदार है।
मगर असली फायदा रिलायंस पेट्रोलियम इंडस्ट्रीज को पहुंचा जिस पर आज तक किसी ने उंगली नहीं उठाई। कहानी कुछ यो हैं कि सद्दाम हुसैन ने कुवैत में जब अपनी सेना भेज दी थी और फरवरी 1991 में इराक के साथ युद्व विराम हो गया था फिर भी इराक को संयुक्त राष्ट्र ने सजा देने के लिए उस पर प्रतिबंध लगा दिए मगर बाद में 1995 में कहा गया कि मानवीय आधार पर इराकी लोगों को खाने पीने का सामान दिया जाएगा और इसके बदले मंे सद्दाम हुसेैन देने वालों को पेट्रोलियम मंे भुगतान करेंगे। जाहिर है कि तब तक अमेरिका सद्दाम के साथ था और बाद में इसी अमेरिका की पहल पर सद्दाम को फांसी पर चढ़ाया गया।
संयुक्त राष्ट्र के प्रस्ताव नंबर 986 मंे कहा गया था कि संयुक्त राष्ट्र में रजिस्टर्ड देशों और कंपनियों को सद्दाम हुसैन तेल देंगे और इसकी कमाई का एक बड़ा हिस्सा संयुक्त राष्ट्र को भोजन और दवाईयो की कीमत के तौर पर दिया जाएगा। 1996 से सद्दाम की सत्ता पलटने तक यानी 2003 तक यह चलता रहा। इसमें संयुक्त राष्ट्र के अधिकारियों ने भी खूब कमाया। सद्दाम मजबूरी मंे बाजार भाव से कम पर तेल बेचने पर मजबूर थे। यही पर जम कर भ्रष्टाचार हुआ। जिसे मौका मिला उसने कमाया। अमेरिका ने पॉल वोल्कर के नेतृत्व मंे एक कमेटी बनाई जिसमंे बगैर संधि के लाभ उठाने वालों की लंबी सूची थी जिन्होंने रिश्वत दे कर तेल लिया था। कश्मीर के नेता भीम सिंह का नाम भी इसमंे था मगर चंूकि उन्होंने एक बूंद भी तेल उठाया नहीं था, उन्हें दोष मुक्त कर दिया गया। रिपोर्ट मंे कहा गया है कि नटवर सिंह ने कांग्रेस की ओर से लगभग तीस लाख बैरल तेल ले कर बेचा जबकि रिलायंस ने सोलह लाख बैरल तेल सद्दाम हुसैन से सीधे प्राप्त किया। कमेटी की रिपोर्ट में कहा गया है कि इसके लिए साढ़े तीस लाख डॉलर की रिश्वत भी दी गई। यह दुनिया मुट्ठी मंे करने का मामला है। पाठक कमेटी की जांच सिर्फ नटवर सिंह और कांग्रेस पार्टी तक सीमित थी जबकि सबसे ज्यादा कमाई करने वाला रिलायंस समूह जांच के दायरे से ही बाहर था। अंदलीव सहगल ने सत्तर लाख रुपए कमीशन मंे लिए थे इसलिए नटवर सिंह फंस गए क्योंकि उन्होंने ही अंदलीव और जगत सिंह को सद्दाम हुसैन से परिचय के लिए पत्र दिए थे। नटवर सिंह के निजी बैंक खाते में एक भी पैसा नहीं पहुंचा मगर उन पर इल्जाम लगा दिया गया।
रिलायंस के सांसदों पर शायद इतने उपकार है कि पूरी बहस में रिलायंस का नाम कहीं नहीं आया। मार्क्सवादी पार्टी के सीताराम येचुरी ने जरूर संसद मंे रिलायंस की जांच करने की मांग की मगर प्रकाश करात ने तो इसी मुद्दे पर बुलाई प्रेस कांफ्रेंस में रिलायंस का नाम तक नहीं लिया। तब तक मुकेश अंबानी उनसे मिल चुके थे। संसद के रिकॉर्ड बताते हैं कि तत्कालीन वित्त मंत्री पी चिदंबरम ने भी रिलायंस का कोई जिक्र नहीं किया गया जबकि वे अच्छे खासे वकील हैं। कपिल सिब्बल जैसे बड़े वकील भी संसद में थे और उन्होंने तो बाकायदा रिलायंस को बचाया। रिलायंस को बचाने वालों में सभी दलों के लोग थे।
रिलायंस की दादागीरी ऐसी रही है कि पन्ना मुक्ता तेल क्षेत्र रिलायंस को राजीव गांधी की सरकार के दौरान तब दे दिया गया था जब सतीश शर्मा पेट्रोलियम मंत्री थे। सरकार की अपनी ओएनजीसी को बाकायदा दस्तावेजों में निकम्मा साबित कर के रिलायंस को काबिल बताया गया और रॉयल्टी के भुगतान में भी उन्हें रियायत दी गई। तेल के भाव कितने भी बढ़ जाए, रिलायंस को पन्ना मुक्ता से निकलने वाले तेल और गैस के लिए एक तय और कभी न बदलने वाली कीमत देनी थी।
आंकड़े बताते हैं कि अब तक रिलायंस को देश की कीमत पर करोड़ों डॉलर का लाभ पहुंचाया जा चुका है और अभी जितनी गैस और तेल बाकी है उससे दस अरब डॉलर का और लाभ होने वाला है। तत्कालीन महा लेखा नियंत्रक ने इस सौदे पर सवाल उठाए थे और सतीश शर्मा के खिलाफ तो अपार दौलत होने के इल्जाम में सीबीआई ने बाकायदा मामला दर्ज किया था।
Media News Video - HPCL extends credit facilities to Kingfisher

http://economictimes.indiatimes.com/tv/corporate/HPCL-extends-credit-facilities-to-Kingfisher/videoshow/5954582.cms
Suman Gaur
Aur jaankari ka intzar rahega........
4 hours ago

Pranidhesh Sharma
सर जी जिस जगर पर भी आप पूरी दास्तान बताएं उसका पता यहाँ पर जरुर बता देना ताकि सभी लोग उस से अवगत हो सकें.
4 hours ago

Alok Tomar
yaheen bataoonga aur datelineindia.com par
3 hours ago

Ravi Srivastava
This is only tip of the iceberg there is a purposeful deliberate attempt by MOP&NG to allow c&MD of HPCL to go scot free since he is retiring on 31st july 2010, he is being protected by Minister& Ministry also attempt is to make some junior officers as scape goat , while responsibility is of Board of Directors , who should be sacked forthwith , to day's ET news says HPCL'S credit to KFA is more then its net profit of 2008-09 i.e only 575 crores what business sense does it make?
3 hours ago ·

Kanchan Kumar Pandey
bond......... james bond.......
2 hours ago

Neeraj Sharmaa
तोमर सा यहॉं तो दाला में काला नहीं पूरी दाल ही काली है। एक नहीं कई सारे मंत्री भ्रष्‍टाचार में लिप्‍त हैं, अभी थोडे ही दिनों में राजस्‍थान प्रदेश कॉंग्रेस अध्‍यक्ष और केन्‍द्रीय ग्रामीण विकास मंत्री डॉ सी पी जोशी के खिलाफ भी नाथद्वारा विधायक श्री कल्‍याणसिंह चौहान ने राजसमन्‍द क्रिकेट क्‍लब के कोषाध्‍यक्ष पद पर भ्रष्‍ट तरीके से चुनाव लडने का आरोप ... See Moreलगाते हुए उदयपुर के विशेष न्‍यायलय भ्रष्‍टाचार (एसीडी कोर्ट) में एक वाद दायर किया है। राजसमन्‍द क्रिकेट क्‍लब के कोषाध्‍यक्ष का चुनाव लड कर ही डॉ श्री सी पी जोशी ने राजस्‍थान क्रिकेट एशोशियेशन के अध्‍यक्ष पद के चुनाव की योग्‍यता हासिल की थी। उसमें भी कार्यवाही लम्बित है।
2 hours ago

Dipak Singh
in our beloved country the eminence of a person is often judged by the quality & quantity of GHOTALA he has accomplished in his life. JAI HO.
2 hours ago

Ashok Chhabria
SAB SECULAR FORCES WALEY DONO HATHON SEDESH KO LOOT RAHE HAIN
2 hours ago

Anil Pandey
देश के नेता तो भरोसा करने लायक बचे ही नहीं हैं। वह दिन दूर नहीं जब ये लोग राज्यों और लोगों को भी अपने फायदे के लिए गिरवरी रख देंगे। ऐसा लगता है कि देश मे लोकतंत्र जनता की सुविधा के लिए नहीं है बल्कि जनता की जान लेने के लिए है। हद हो गई है कोई भी ऐसी सरकार है क्या देश में जिसके कार्यकाल मे घोटाले न हुए हों। ये घोटालेबाज सार्वजनिक संपत्ति को निजी मान... See Moreकर ही चलते हैं। ये वो अजगर हें जो अगर पूरी सृष्टि भी निगल लें तब भी इनकी भूख खत्म नहीं होगी। घोर निराशा होती है यह सब सुनकर। कभी कभी अफसोस भी होता है कि राजनीति किस कदर घटिया और स्तरहीन हो चुकी है। हर नेता आकंठ भ्रष्टाचार में डूबा है।
about an hour ago

Anil Pandey
वैसे दोष सिर्फ नेताओं का नहीं हम जैसे नागरिकों का भी है। जो ऐसे लोगों को अपना प्रतिनिधि बनाते हैं। और जो लोग प्रतिनिधि नहीं बन पाते हैं वो बैकडोर से राज्यसभा पहुंच जाते हैं। वाइल्ड कार्ड एंट्री।
about an hour ago

Ravi Srivastava
@ Anil they do'nt go empty handed from back door , go with money bags till they serve this purpose they are retained then dumped. HPCL TOP MANAGEMENT MERRILY ENJOYS COMPLIMENTARY UPGRADE FREE TICKETS AGAINST REWARD POINTS EARNED FOR OFFICIAL TRAVEL , WHICH THEY HAVE TO USE ONLY FOR OFFICIAL TRAVEL AS PER THE GOVT,S POLICY
about an hour ago ·
MARKER CASE
Adulteration in the motor fuels (Petrol& Diesel) has been a menace for MOP&NG since a very long time, precisely due to artificially keeping low price of Kerosene .Price of PDS kerosene has not been revised for more than a decade to keep the vote bank of BPL users intact by respective governments, such artificially low price has made adulteration of motor fuels like petrol/diesel with this PDS Kerosene a lucrative trade. Late Manjunath Sales officer of Indian oil was murdered while checking adulteration at a Petrol pump in U.P.
Government tried several methods to curb it, and colored (blue dyed)PDS kerosene , anti adulteration drives were carried out but adulteration kept flourishing due to the differential of kerosene price and rising price of motor fuels. By a study of NCEAR it was established that 38% of Kerosene is diverted and used for adulteration by Petrol/diesel pump owners with the support of transporters and even oil company officials.
MOP&NG formed a committee of Top oil company officials and sent them abroad to study and suggest a suitable Marker , which can detect adulteration in motor fuels, such ‘markers’ are used in south Africa, Malaysia and many other countries to check adulteration due differential pricing or subsidized fuel etc. Committee finally zeroed down on few suppliers of markers , out of which M/s Authentix was hand picked by ministry officials for supplying marker to oil marketing companies IOC/BPC/HPC , such decision was taken without even conducting a Pilot study. Oil companies were advised to procure the marker from Indian agents of above supplier M/s SGS Ltd on a single offer basis. There was such a tearing hurry to implement marker system that no formulation, specification , chemical composition or Environment impact was studied /verified or compared. MOP&NG even amended the MDG( Marketing discipline guidelines) to empower the private company personnel to check /Inspect Retail outlets for the presence of marker (adulterated by marker doped kerosene), across the country.
Then secy. Petroleum ordered the oil companies in July 2006 to implement the Marker system expeditiously and oil companies placed purchase orders in Aug. 2006. The inauguration and Public demonstration of Marker system was carried out by Minister of Petroleum Sh. Murli Deora, Secy. Petroleum M.S. Srivnivasan , Dealers Association President shri, Ashok Badhwar, local MP Sh.. Sajjan kumar on 4.10.2006 at Indian oil’s Bijwasan Terminal, Initial order by oil companies was placed for 1 year till Sept 2007for approx. Rs. 100 crore .
Oil sector Officer’s Association convener Ashok Singh and coordinator R.P.Srivastava were approached by Marketing officers of oil companies and complained that Petrol pump owners were subjected to Extortion by the Private company SGS in the name of inspection /checking of Marker .OSOA mandated one leading Advocate of Mumbai to obtain all procurement details of Marker system in Nov. 2007 through RTI while the supply contract of Marker was extended for 6 months i.e up to March 2008, after initial denial even by MOP&NG , advocate received all the information in May 2008.
Ashok singh & Srivastava made a formal complaint to Joint Director CBI, Mumbai in May 2008, in a quick retaliation Ashok Singh was promptly suspended within 4 days of filing the complaint by implicating him into a false charge, they both approached CVC(central vigilance commissioner) personally in June, July& Aug. 2008 , for whistle blowers protection, which was declined and all their correspondence was shared with HPCL Management who swiftly removed Srivastava’s all assistance, evicted from his office and made to sit under stair case, his perquisites were stopped and even deducted salary. MOP&NG ordered oil companies to extend the contract of SGS till Dec. 2008 and total Marker worth Rs. 200 crore was purchased all on single offer.
PIL no. 60 was filed in Mumbai High Court in June 2008 by a social activist Sh. Simpreet singh , which was decided in Oct. 2008 , Hon’ble Mumbai High court ordered CBI to investigate whole Marker scam and ordered MOP&NG separately to conduct enquiry by Ministry’s Vigilance dept.One Indian express report in Oct 2008 confirmed that the Marker was removable/launderable by ordinary clay.HPCL looking for some excuse to remove Srivastava who was suspended in Jan 2009 , again by falsely implicating him into OSOA’s strike from 7-9th Jan. 2009, HPCL had incidentally not participated in that strike , and himself was on duty during the strike days. In the meantime MOP&NG abruptly advised all oil companies to stop marker doping w.e.f Jan 2009 without assigning any reason.
Times of India report in June 2009 , confirmed that HPCL ‘s own R&D advisor had confirmed as early as in Jan. 2005 that the Marker is carcinogenic in nature (could cause cancer in human being).Finally CBI filed a PE in Marker case in April 2009 against then Secy Petroleum , SGS, Authentix and unknown oil company officials .According to CNN-IBN News on 21st sept 2009 , CVC has also ordered CBI to conduct enquiry against Senior Petroleum ministry officials , News also confirmed that Authentix was already a black listed company abroad with the name “Biocode” Marker was purchased at the price of Rs. 13000 per ltr. and there was no basis for procuring marker at such an exorbitant price
Ashok Singh & Srivastava were removed from services of HPCL in March 2009. Srivastava was evicted from company accommodation in Aug 2009 after facing insult and humiliation by HPCL management for 15 months . This is all done by HPCL who claim themselves to be Model Employers being a Govt. of India undertaking, Claiming themselves pioneers in the field of HR for their HR practices like Emotional Intelligence/Performance Management , competence mapping etc. etc.
Despite High court/CVC orders no visible action appears to have been taken by CBI?
I
The year 200910 has.om€ to an end, an eventfulyear w th an excellent perlormance by reor
Mdr*etirq. Ou. commitment to be rJo.t
^ot
only n the Retai sector blr across a busne$
lnes stands f.m and unwaverine, and rean Ma*etins s fu ly charged towards turo ns thar
drcam nto rea ity on botlom line bas s we have been able to a.h eve a volume oa 24 53 MMT
thereby regisrering a growthot3% overh storica aswelaroverAoP(2r.36MMI)fortheyear
200910. we have been able to source 15.77 MMTfrom Relnery and the ba an.e wa5sou(€d
through d fferent groups lke rT&S and O&D wh ch was a challenge and a credtCodtothem
Ahd,thevarous nnovatveln t at ves undedaken by the sBUs a one wth the deve opm€^t and
up S6datio^ of infranru.ture, f{iltes and new projeds, har greany mproved our saes
performance lhis sustainad foctrs wil surey €ap rich dvdends in the lons run and he p
mprove our marketshare wh ch sourcoledrveaspnarion
lhe various SBU9 have perforfred exceedidgy wel n th€ year, keepine i^ vew the produd
suppy situations, refln€ry downturn,.tc whletheRetai sedor hasshown aBrowth of3%,
tPG 12%, Av at on 3 9% atrd [ubesat33.s%,ther&c pe.lormanceot 13.3%which is ona..ount
of malor o$ in vo umes of Naphtha & LsNs, has mor€ than hade up n Ms/Hso c, Fo &
Btumer. The.onnant suppod ol o&D a^d P&P which s the ba.kbone of Marketns, has
helped achieve the sa es volume ot24.53 MMT, and kudos to them
Projeds & Pipeiner Department has achieved an a lt me record thru put of 1192 MMT for a
three Plpe nes,which has ako ex.eeded the Ministry MOUiarsetofl0 MMT.
For the.om ns ts.alyear 201011, an the SBUs a.d a led Markering fundions are advsed to
ser thet interna tarCets we in advance and finalne the r respedive MOUs which lwould like
signed lointy wth me, by the end ofApril2010. Basd the ddmesric5aes tarsel of25 72 MMT
n the Annua P an 2010 11, and with a desire io a.h eve 26 MMT, the ssls
are requened io.onsider nret.hing a itte hore whlst fnn trg up then AoP targets
a.cord ncy. Th€se rargets alonS with the targets/pahneteE 5et in the MoLr wirh MoP&Nc,
need to be dosey montored by al cotrcerned far period. and quadery revews and
Another vtalaspect pe.tains to the financ a mp .ations in the mdter ol exrens on olcredit to
custome6. tkextremey mponanta.dcrtcalthattheoutna^dingsf.omthecustomerare
very cosely nonitored and Corpontion's fn.ncial nte.est fu y prote.red. There 5hal be no
fiedit beyo^d apprdved termr a^d ea.h of the sBUs/Rpson5 need to nonitor ths aspect very
speclfi.ally Wherevef any beyond termsa.e.eponed or alowed tb.dntinue, the same wi be
viewed verv (t.a y. S m larly, a our out stand ngs should be secured ro the erte^t po$ible
Thereshou d no unsecured out5tandngsnotcovered in the form of Bcs, Lcs,€k.
EEtr I
The credit evauarion and.red t arse$nent for rettinc the nedti tmiikanothercrtcalarea
whch needs to be ca.red aut v€ry.ar.fu y and a I the Resiona Credit Committees should
evaluate ths asp€ct perlodica ly in respect of the r .redit .ustome6 dur ne the ReC onalCredir
Comm ttee meeungs and take suitabe actionr a..ordi^sly. Needle$ to emphasze that
collecton on t m€ wll be the prime focls and no laxty on ihs account shal be a owed 1o
Thel!ture as we seelor HPc and esp.callyfor Market ns i5 bright,.ustomer dr ven and lu lof
unbpped potentalwhich, wth the rght impetus, wil rake us roward5 our ultimate soalot
being tJo,r rn the Indunry The hsh standards 5et bV us wilcreate new business idea5 and
50 ut ons to meet marlet.hallenges wthout.ompromi5 ns on our core princlples & decis ons
Tbe path to realrinCour vson to be,vo,l na bng and arduoustask Iheluture isvolatiewith
ble r.cto6 lke economns, demogmphics, e8al, poirca and
socia condtionr, re.hnological .hange!, and natucl lorces nfluen.ing our orsannations
de.Gion makns which wi lmpact our performance aid shategies. Bur al thi! should not
dis.ouraseourenth!sasmand drve,and instead motivate us ro think d fferenr y, nnovaleand
stcteSte to aiain su.ce$
wou d lke to take thr opportunq to rea.h out to each one of you, dear coleasues, and
assure you that despte rhe odds faced by us, w€ shou d rise above our lev€lof conlort and
reease the dir(etio^ary eftort n pedorm ng ourlasks to rh€ fulpn potentialand capabrlri€s
to.eachihar eve ofex.elence and surpass o!. next y€als target of26 MMTso aslo be able
to ach eveourcoroorate Pran obledrve of40 MMT nthevear2014.15.
on th€ whol€, rhe ex.erent penorman.e bythe sBUs with the nupendous support ofrhe ailied
functons lke O&D, P&P, R&D ac, NR, Mktg Fna^.e and legal i5 deseryins of a lcreditand frv
.ompliments to Team Markenng,
.odc"' LohJEU"<>
http://economictimes.indiatimes.com/tv/corporate/Kingfisher-Airlines-pays-Rs-63-crore-to-HPCL/videosho

Indianpetro.com


Indian Oil Corporation (IOC) is working earnestly to give the country its first indigenous marker system by end of 2010 for checking adulteration of petrol and diesel with subsidised kerosene. The company's R&D division is in the process of formulating the correct mix of substances required for developing the marker system suited for Indian conditions. "At present a laboratory study is being carried out and the findings, so far, have been quite positive," sources confirmed. The laboratory studies are expected to be concluded by end of April, 2010, after which the corporation will take a call on moving ahead on to the next stage. The next stage will involve scaling up the quantity of the product, which will take anything between three to four months. Thereafter, the marker will be tested for commercial production. "We are hopeful that all these activities will be completed by end of this year," sources indicated.
8
Readers may note that since the discontinuation of the marker system of UK-basedAuthentix with effect from January 1, 2009, the petroleum ministry has adopted a three-pronged approach for developing an efficient marker system. While the search for a marker through the Global Expression of Interest (EGOI) route is expected to continue, the oil marketing companies (OMCs), spearheaded by IOC, have been advised to develop an indigenous marker on their own. Thirdly, the Council of Scientific and Industrial Research (CSIR) and other premier scientific institutions of the country have been advised to support this endeavor for developing an indigenous marker.
8
The government has told the OMCs to simultaneously press ahead with the tendering process through the GEOI route. As per sources, a timeframe of three to four months has been given to international vendors for modifying their bids in line with technical requirements to be enlisted in the tender. However, the tender details are expected to be put up on the respective websites of the OMCs in a few days, after which the empanelment process will begin. Thereafter, a fresh tender will be issued.
8
Meanwhile, IOC has already written to CSIR and other premier institutions of the country for their inputs on their indigenous endeavor. However, the company is yet to receive a positive response from them. By Neeraj Dhankher

xxxxxxxxxxxxxxxxxxxxxxxxxxxx

The National Council of Applied Economic Research (NCAER) had indicated that about 38.6% of kerosene was being diverted for unauthorised usage, including adulteration, on account of the high differential and easy miscibility in petrol and diesel.
Subsequently, Authentix was awarded a contract to introduce a marker in kerosene from
October 1, 2006, onwards to the OMCs for a period of one year through its Indian agent, SGS India Ltd. The latter, in turn, was entrusted with the task of conducting test checks on behalf of the petroleum industry at all retail outlets in a time-bound manner.

The marker system was found effective in curbing adulteration of MS/HSD with SKO but the catch rate with this system was found to be only 0.3%. This was higher then the catch rate achieved by traditional method (0.05%). The success rate was still considered to be dismal and Authentix`s services were terminated from January 1, 2009. Since then, the search for a new market has been on.
Though the search is till on for a new and efficient marker, the government has advised the OMCs to evolve an indigenous marker system by taking help from premier scientific institutions of the country

Corp governance in PSUs hits govt wall

| New Delhi, March 29, 2010 | Updated 08:28 IST
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Even as the Union Cabinet on Thursday made it mandatory for public sector undertakings (PSUs) to follow corporate governance norms, senior executives of blue chip PSUs point out that it is the government itself that has been posing hurdles in the implementation of these rules.

Senior executives of public sector energy major GAIL disclosed that the company management had run into trouble with market watchdog Securities and Exchange Board of India (Sebi) for not appointing the required number of independent directors on its board because the proposal had been held up by the ministry.

GAIL had to furnish its communication with the ministry of petroleum and natural gas to prove that it was the government and not the company management that was responsible for the delay in appointment of independent directors.

Sebi eventually concluded that it was a case of a "sad travesty of the law by the government of India… and as it's not the company but the major shareholder (government), which is the culprit". Similarly Oil and Natural Gas Corp (ONGC) officials point out that although the oil giant is a listed company, the government has an ad hoc mechanism for forcing it to compensate the downstream oil companies - Indian Oil Corp Ltd (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) - for revenue loss on the sale of petroleum products sold below market price due to the government's political compulsions.

Senior ONGC officials are of the view that this is not fair to the shareholders and if the government wants to pay such compensation in the national interest, it should to be done on the basis of a concrete formula.

Besides, the price that ONGC gets for its natural gas is less than half of what the private companies rake in and the government has been dragging its feet on the proposal for raising the price to a more reasonable level. ONGC has been losing Rs 3,000 crore every year as a result of this low price.

While the petroleum ministry has been in favour of increasing the price, the power and fertiliser ministries have been opposed to the proposal as it would lead to an increase in the cost of production for power plants that sell electricity at regulated prices and the fertiliser subsidy would also go up.

Natural gas is used as a fuel by power plants and as a feedstock for manufacturing fertilisers.

Executives of the downstream oil companies, such as IOC, BPCL and HPCL also hold the grouse that the government has not been allowing them to raise the prices of petroleum products to bring them at par with market prices due to political reasons and this has eroded their profits.

Even the partial compensation that they receive from the government does not come in time, which makes it difficult to manage their books since they have to prepare their financial results every quarter like the other listed companies.

Senior public sector executives are also of the view that independent directors must be appointed by the government on managerial merit rather than on the basis of political connections, which turns out to be counter- productive.

As far as the emphasis on audit in the new corporate governance norms is concerned, senior executives say the public sector companies are already subject to stringent audit by the Comptroller and Auditor General of India (CAG), whose report is tabled in Parliament.

Besides, public sector companies fall under the watchful eye of the Central Vigilance Commissioner (CVC) and the Central Bureau of Investigation ( CBI). "The fear of these three Cs (CAG, CVC and CBI), in fact, often cramps the decision making of public sector enterprises," a senior executive remarked.

Governance a distant dream for PSU:

  • GAIL management had run into trouble with Sebi for not appointing the required number of independent directors on its board because the proposal had been held up by the ministry.
  • Although ONGC is a listed co, the govt has an ad hoc policy for forcing it to compensate the downstream oil cos for revenue loss on the sale of petro products sold below the market price due to the govt's political compulsions.
  • Executives of IOC, BPCL and HPCL also hold the grouse that the govt has not been allowing them to raise the prices of petroleum products to bring them at par with market prices due to political reasons.
  • Senior PSU staff also feel the independent directors must be appointed by the govt on managerial merit rather than on the basis of political connections, which turns out to be counter- productive.
  • As far as the emphasis on audit in the new corporate governance norms is concerned, senior executives say public sector companies are already under the stringent scanners of the three ' C's - CAG, CVC & CBI. CORP

PIL IN MUMBAI HIGH COURT ON 16.6.2008 BY SIMPREET SINGH

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

PUBLIC INTEREST LITIGATION NO. OF 2008

In the matter of Article 14, 21 and 226 of the Constitution of India.

AND

In the matter of Essential Commodities Act 1955

AND

In the matter of Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005.

AND

In the matter of Prevention of Corruption Act 1988

AND

In the matter of Code of Criminal Procedure, 1973.

AND

In the matter of Environment Protection Act, 1986 r/w Environment Impact Assessment Notification of 1994 and Environment Impact Assessment Notification of 2005..

AND

In the matter of Standards of Weights and Measures Act, 1976.

AND

In the matter of Article 14, 21 and 226 of the Constitution of India.

…………

………… PETITIONER

V/S

1. The Secretary,

Ministry of Petroleum & Natural Gas

Shastri Bhavan,

New Delhi-110 001

2. The Chairman cum Managing Director

Indian Oil Corporation

Indian Oil Bhavan,

………

3. The Chairman cum Managing Director,

Bharat Petroleum Corporation Ltd

Bharat Bhavan,

4& 6 Currimbhoy Road,

Ballard Estate,

Mumbai-400 001.

4. The Chairman cum Managing Director

Hindustan Petroleum Corporation Ltd

17, Jamshedji Tata Road,

Mumbai – 400 001

5. The Chairman cum Managing Director

IBP Ltd.

……………..

6. Petroleum and Analysis Cell

Ministry of Petroleum and Natural Gas

……………..

7. Joint Director,

Central Bureau of Investigation,

Western Zone,

Tanna House, Nathalal Parekh Marg

Near Regal, Mumbai.

8. The Secretary

Ministry of Environment and Forests,

Paryavaran Bhavan, New Delhi

9. Controller of Legal Metrology

Government Barracks No. 7

Free Press Journal Marg, Nariman Point

Mumbai.

10. M/s. Authentrix Ltd.

………….

11. M/s. SGS (India) Ltd.

……………..

12. Shri M.S. Srinivasan,

Secretary, Petroleum and Natural Gas,

Shastri Bhavan,

New Delhi-110 001.

………. RESPONDENTS

TO

THE HON’BLE CHIEF JUSTICE

AND OTHER HON’BLE JUDGES OF

THE HIGH COURT OF BOMBAY

HUMBLE PETITION OF THE

PETITIONERS ABOVENAMED

MOST RESPECTFULLY SHEWETH

1. The Petitioner is a public spirited citizen of India and is based in Mumbai/Thane area. He has been taking up several social and public related activities from time to time. The Petitioner has been following up various news reports pertaining to adulteration of petroleum and diesel from time to time. For this reason, he has developed enormous concern over such activities.

2. The cause of action for the filing of this Public Interest Litigation is for the concern of the Petitioner which got accentuated over the fact that recently the price of crude oil has crossed all price barriers and is close to touching the astronomical price of $ 150 per barrel, whereas it used to be about $ 25 to 30 about 5 years back. This has a grave potential of casting a grave blow on our fragile economy and particular the common people for whom today the primary means of transport has become motor cycles and scooters.

3. The Petitioner submits that in this grave moment of menacingly spiralling price rise in the petroleum sector he came across a news report dated ___ in the Times of India where the following was written: ‘CRACK DOWN ON FUEL MAFIA’.

4. The text of this report is quoted as under, and the same is also annexed as EXHIBIT-"A":

‘CRACK DOWN ON FUEL MAFIA’

The Oil Sector Officers’ Association has called for an immediate crack down on the fuel adulteration mafia which is generating profits of thousands of crores illegally.

Following a report in the TOI on Tuesday, association convener Ashok Singh said the association would do its utmost to put an end to the fuel adulteration which was widespread across which was widespread across the country. He said the association had been demanding that marker (a chemical additive which helps easy detection of adulteration) should be added to the fuels, petrol and diesel, at the refining stage itself. “But for some strange reason it is being added to the adulterant, kerosene. Its addition at the refining stage would have broken the back of the adulteration mafia. But it is not being done because of pressure from vested interests,” a senior official of an oil PSU observed.

The TOI had reported how the proposed hike in petrol and diesel prices would make adulteration more lucrative for the mafia. While kerosene is sold at Rs. 11 per litre, petrol is retailed at Rs. 50.54 per litre and diesel at Rs. 36.12 per litre.

At present, marker is added only to kerosene and not to naptha which is another adulterant commonly used by the mafia, allegedly being backed by vested interests in the petroleum ministry, oil companies, police force and politics. Notorious adulterators like the Vorah and Cheda brothers, Singh Bandhu, Dattu and Naghpals are operating brazenly, jeopardising the lives of millions of people who inhale dangerous emissions from adulterated fuels.

The association has also demanded that global tenders be invited for the purchase of marker. In a complaint to the Central Bureau of Investigation, western region, the association has alleged that marker worth Rs. 200 crore was purchased from Mumbai based SGS(India) Ltd without inviting global tenders. It has demanded a probe in the matter:

SGS gets the chemical from Authentrix, a UK-based company. The association has also alleged that prior clearance from the ministry of environment was not obtained and the UK firm was not asked to disclose the composition of the marker product. A senior official of Authentrix said his company’s product was selected after extensive technical evaluation by experts in the Indian oil industry. As for tenders not being invited, he said it was for the oil companies to take a decision on the issue. He said it was his company’s policy not to disclose the composition of the marker.” (Emphasis supplied).

5. Since the highlighted portions of the text quoted above reveals a disturbing state of affairs, accordingly, the Petitioner got in touch with various persons to collect information in this regard. Based thereupon, the Petitioner came across statutory violations of laws which have happened in this entire deal whereby M/s. Authentrix and its India subsidiary M/s. SGS (India) Ltd. were illegally conferred with statutory functions and awarded a contract in violation of several specific laws. Accordingly, this Petition is being filed for seeking appropriate reliefs in this reference.

3. PARTIES:

3.1 Respondent No.1 Secretary, Petroleum and Natural Gas, Shastri Bhavan, New Delhi. He gave instructions and prevailed upon the 4 public oil companies working under him to award contract to M/s. Authentrix/SGS India Ltd in violation of specific laws of the land on a single bid basis.

3.2 Respondent No. 2 is the Chairman cum Managing Director, Indian Oil Corporation. It was his duty to have placed the correct legal facts before finalising the contract with M/s. Authentrix/SGS (India) Ltd. However, for reasons best known to him he failed to do so.

3.3 Respondent No. 3 is the Chairman cum Managing Director of Hindustan Petroleum Corporation Ltd, Respondent No. 4 is the Chairman cum Managing Director of Bharat Petroleum Corporation Ltd., and Respondent No. 5 is the Chairman cum Managing Director IBP Ltd. The role of these 3 respondents was similar to that of Respondent No.2 stated above.

3.4 Respondent No. 6 is the Petroleum and Analysis Cell

of the Ministry of Petroleum and Natural Gas, New Delhi. This cell which is required to perform academic functions, exceeded its brief and while doing a technical study for the chemical characteristics of the marker, went ahead and started negotiations with the private Company Mssrs. Authentix, for awarding the contract to them.

3.5 Respondent No. 7 is the Joint Director, Central Bureau of Investigation, West Zone, Mumbai before whom the complanitn of this huge corruption is pending for probe.

3.6 Respondent No. 8 is the Secretary, Ministry of Environment and Forests. Despite the fact that introduction of marker had implications with reference to standards of fuel emission but no Environment Impact Assessment as required under law was done in the matter and no consequent Environmental Clearance from the Ministry of Environment and Forests, in this reference.

3.7 Respondent No. 9 is Controller of Legal Metrology Mumbai. The marker was introduced as an extraneous element in kerosene which had implications on weights and measures. However, no permission under the Standards of Weights and Measures Act, 1976 was taken in this reference.

3.8 Respondent No. 10 is M/s. Authentrix Ltd. This company was awarded the contract in violation of several laws of the land and is the prime pecuniary beneficiary in relation thereof.

3.9 Respondent No. 11 is M/s. SGS (India) Ltd. This company is the Indian subsidiary of M/s. Authentrix and likewise was the prime pecuniary beneficiary for the award of this impugned contract.

3.10 Respondent No. 12 is Shri M.S. Srinivasan, Secretary, Petroleum and Natural Gas. It was on his personal instructions and for the reason of his taking extraordinarily-intense interest in this matter that this contract came to be awarded notwithstanding the violations of laws.

4.0 BRIEF FACTS:

4.1 The problem of adulteration of petrol and diesel with kerosene has been an endemic problem. Various actions have been taken from time to time to tackle this problem. However, because of a powerful nexus among various beneficiaries and public servants, this problem has sustained for long. While there were several actions being taken in this reference, in this sequence, in one of the actions, teams were sent to the countries of Kenya and UK to find out as to whether markers could be used to tackle the adulterants. A marker is a chemical substance which is added to kerosene for reference purposes. If the presence of this chemical marker is found in petrol or diesel that would indicate that the same had got adulterated with kerosene.

4.2 Based on such reports, on 21st October, 2005, Respondent No. 6, i.e. the Petroleum and Analysis Cell, for the reasons best known to them, prepared a technical report for to introduction of markers. However, while doing so, they crossed their academic limits of planning and analysis. Instead, they put forward a case to further the commercial interests of M/s. Authentrix/SGS.

4.3 In the said letter, annexed as EXHIBIT-"B", the said Respondent No. 6 espoused the commercial cause of this company instead of confining themselves to academic issues for which they were accorded a brief. In doing so, the said Respondent No. 6 did not even consider the aspect of inviting bids from global companies and performing their duties for setting-up specifications. Such setting of specifications was also necessary because the act of taking action against adulterators is a statutory function entailing imprisonment and also which has got other penal consequences. As per the established rules of natural justice ingrained in the Constitution of India, if any citizen is put to an adversity and his personal liberty curtailed through imprisonment, in that case, all the technical parameters which would prove the case have to precise, specific and overwhelmingly credible.

4.4 It is also pertinent to note that in this academic study the said Petroleum Planning and Analysis Cell, under extremely suspicious circumstances, got in touch with private parties and solicited commercial offers from them in this reference. This is apparent from the letter of Respondent No. 11, namely, SGS (India) Ltd., dated 4th October, 2005, which is annexed with the said letter of 21st October, 2005 which has been marked as EXHIBIT-"B" above.

4.5 Based on this report, the Ministry of Petroleum and Natural Gas, Government of India, vide its letter dated 14th November, 2005 which is marked as EXHIBIT-"C" gave the following instructions:

“Introduction of Marker in PDS Kerosene:

Oil companies shall implement field trials on marking of PDS Kerosene as proposed by PPAC/Industry in Andhra Pradesh in a time bound manner and give their views on the techno-economic viability of the proposal at the earliest. Addl. Director (Mktg), PPAC shall coordinate implementation of field trials and give action plan of the Industry in this regard.” (Emphasis supplied).

4.6 Notwithstanding these instructions, in a highly suspicious manner, Respondent No. 12, namely, Shri M.S. Srinivasan, Secretary, Petroleum and Natural Gas, did a complete volte face. Pursuant thereto, he decided that there was no need to undertake field trials and instead the contract be given straight away to M/s. Authentrix/SGS. .5 Based on this report, the Ministry of Petroleum and Natural Gas, Government of India, vide its letter dated 14th November, 2005 which is marked as EXHIBIT-"D" gave the following instructions:

“Introduction of Marker in PDS Kerosene:

4. Presentation by M/s. Authentrix on marking of adulterants.

4.1 Earlier, the R&D Centre, IOC on behalf of the Industry had floated global enquiries and identified the marker system of M/s. Authentrix as meeting the requirements/characteristics for implementing marker in potential adulterants. It was decided in November, 2005 to implement marking of PDS kerosene in the State of Andhra Pradesh. But, during the meeting taken by Secretary (P&NG) on 12.4.2006, it was decided that there was no need for undertaking field trials in one state; instead marking of potential adulterants at refineries/manufacturing units and import locations all over the country should be implemented by 1.7.2006. IOC was advised to coordinate implementation of the above on behalf of Industry. OIC/Industry held several meetings with M/s. Authentix to finalise modalities for marking of potential adulterants.

4.2 In today’s meeting, M/s. Authentix along with M/s. SGS Inida (Police)Ltd made a presentation on doping of markers in adulterants. M/s. Authentix/OMCs stated that doping of marker be undertaken at supply locations such as terminals and depots as marking at refineries would not be feasible on account of logistic constraints.

4.3 M/s. Authentix confirmed that they would require 8 weeks from the date of placing order by OMCs to supply market, test kits, impart training and implement the marker programme.

4.4 Detailed deliberations were held on introduction of marker in adulterants and the following decisions were taken:

(i) OMCs would implement marking of kerosene all over the country effective 1.10.2006.

(ii) IOC would coordinate on behalf of the Industry and finalise the modalities/contract and ensure placing of orders/signing of contracts or agreements with M/s. Authentix within 10 days.

(iii) Marker would be doped in kerosene at supply locations such as terminals/depots.

(iv) Test kits would also be provided to retail outlet dealers to enable them test MS/HSD at the time of receipt from OMCs.

(v) Dealers would also be imparted training on testing of product using the test kits of M/s. Authentix.

(vi) IOC WOULD OBTAIN TESTING PROTOL FROM m/S. Authentix to mitigate legal issues, if any.

(vii) OMCs would discontinue marking of MS/HSD at Mumbai and Delhi effective 30.9.2006 on implementation of markers in kerosene commencing 1.10.06.

(viii) Adequate publicity campaign would be undertaken on implementation of marker in kerosene.” (Emphasis supplied).

4.7 Based on such clear-cut and specific instructions issued by Respondent No. 12, i.e. the Secretary Shri Shrinivasan, Respondent No. 2 to 5 without raising any objections over this blatantly illegal proposal constituted an Industry Committee of Marker, comprising officers of 4 public sector oil companies, for the purpose of putting a rubber-stamp on the proposal which had already been finalised earlier by Respondent No. 12, Shri Shrinivasan. Accordingly, this committee, in lightening speed, prepared a report on 26th July, 2006. Hereto annexed is the copy of this report and the same is marked as EXHIBIT-"E". Based on this report huge commercial orders were given to M/s. Authentrix/SGS. It is learnt that the aggregate value of the contract so awarded, without calling any public tenders, is to the tune of about Rs. 200 crores.

4.6 The Petitioner further came to know that for the reason of these illegal actions, the Officers’ Association of the Oil Sector filed a complaint with the Central Bureau of Investigation with reference to corruption having been practised by Respondent No. 12 and also by other persons. Hereto annexed is the copy of the said complaint filed before the CBI and the same is marked as EXHIBIT-"F". However despite the fact that it was incumbent on the CBI to have registered an FIR at once in terms of section 154 of Cr.P.C., yet the CBI failed to perform its statutory functions and till now has not registered the requisite FIR against high-level functionaries.

4.7 The Petitioner further submits that it is the clear-cut provision in the CBI Manual that CBI has to curb corruption at high places. Despite the fact that there has been a blatant and conspicuous action of corruption at high places having mammoth pecuniary consequences and also having a long drawn out socio-economic implications, yet the CBI has not performed the functions the way it should have.

4.7 The Petitioner submits that for the reason of such actions contrary to law, the authority of the people who have been accorded statutory functions to control adulteration of petroleum products have been undermined. This authority has now been conferred on a private party i.e. Respondents No. 10 and 1. This has been done without making any commensurate changes in the law in this reference.

4.8 It is further submitted that any statutory authority can only be accorded to persons who have been appointed in accordance with law and the same cannot be given to a private agency. If this is done this shall militate against the established system of governance.

4.9 The Petitioner humbly submits that since the aforesaid actions violate specific provisions of law, accordingly, this PIL is being filed for seeking necessary relief in relation thereof. As to what are the specific grounds and the specific legal provisions which have been violated in the matter these are detailed under the heading GROUNDS.

GROUNDS:

4.1 FIRST: Huge contract of the value of Rs. 200 crores awarded without issuing global tenders and without even doing the basic work of preparing specifications and cost estimates:

It is an established stipulation which has been made not only in the ‘purchase manuals’ of the departments but has also been so stipulated in the instructions issued by the Central Vigilance Commission, that for any large purchase there has to be open tenders. This is more so, because the purchase here is not for a proprietary item since there are several firms who are into this business.

Since in this case, the value of supply was large and since there were several international companies who were in this business of petroleum product markers, as such, it was necessary for open tenders to be called globally and thereafter, the selection be made for the best offer as per the prescribed procedures for evaluation.

However, in this case, the Respondents No. 10 and 11 were awarded contract without the issuance of any global/open tender and that this was done on the basis of single offer. This is clearly apparent from the orders given by the Respondent No. 12 vide the minutes circulated on 12th July, 2006 (EXHIBIT-"D").

In this reference, the instructions issued by the Central Vigilance Commission are clear some of which are quoted hereunder from the ’Guidelines for Purchases’ issued by the CVC:

6.0 Notice Inviting Tender:

“6.1 Against the most preferred and transparent mode of Global tender enquiry/Advertised tender enquiry, some of the Organizations are generally issuing limited tender inquiry to select venders, irrespective of the value of purchase. Further, the credentials of the firms and the criteria adopted for selection of such venders, in most of the cases, are not put on record. This not only results in lack of competition but also favoritism to the select vendors. It has been noticed that even in cases where Advertised/Global tender inquiries were issued, the same were published in the local dailies and not in any National Newspaper and particularly in Indian Trade Journal, Calcutta, which is a Government publication and is regarded as the standard medium for advertising tender notices in India. The main purpose of issuing Advertised/Global tender inquiry is to give wide publicity. It has been noticed that the Organizations do not forward the copies of the tender notices to the registered/past/likely suppliers and while in case of imported stores, the copies of the tender notices are not being forwarded to Indian Missions/Embassies of major trading countries.

In order to give wide publicity, generate enough competition and to avoid favoritism, as far as possible, issue of advertised/Global tender inquiries should be resorted to and published in ITJ and select National Newspapers. The copies of the tender notices should be sent to all the registered/past/likely suppliers by UPC and also to the Indian Missions /Embassies of major trading countries in case of imported stores.

… …

6.3 …………. In case of proprietary purchases, the detailed justification for purchase from a single vendor is not being placed on record. As by issuing single tender, the competition is totally eliminated and the possibility of paying higher prices cannot be ruled out.

• It is imperative that the purchase on Single tender basis be made with the detailed justification in its support and with the approval of Competent Authority, including associated finance.” (Emphasis supplied).

The Petitioner humbly submits that from the aforesaid it is clearly apparent that there has been a very crystal clear violation of established and prescribed principles of purchase through the process of competitive bidding and transparency. This sacrosanct principle was breached in this case so as to accord pecuniary favours to private parties.

4.2 SECOND: Private company personnel illegally assigned to perform statutory functions under the Essential Commodities Act, 1955 – authority of those accorded statutory powers of search and seizure got undermined:

It is seen from the scope of the contract that Mssrs. SGS i.e. Respondent No. 11, shall be checking all the petrol pumps once in every 4 months and shall then be booking the guilty persons whose samples fail.

It is also seen that the statutory powers of checking petrol pumps have been given to “Sales Officer” of the public sector oil companies of the rank of “Sales Officer” and above, vide Clause 7 of the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005, issued under the Essential Commodities Act, 1955, which is annexed hereto and marked as EXHIBIT-"G". The relevant part of the said order is quoted hereunder:

7. Power of search and seizure –


(1) Any Gazetted officer of the Central Government or a State Government or any police officer not below the rank of Deputy Superintendent of Police duly authorized, by general or special order of the Central Government or a State Government, as the case may be,
or any officer of the oil company, not below the rank of sales officer, may, with a view to securing compliance with the provisions of this Order, or for the purpose of satisfying himself that this Order or any order made there under has been complied with or there is reason to believe that all or any of the provisions of this Order have been and are being or are about to be contravened.-


(a) enter and search any place or premises of a dealer, transporter, consumer or any other person who is an employee or agent of such dealer or transporter or consumer,


(b) stop and search any person or vehicle or receptacle used or intended to be used for movement of the product;


(c)
take samples of the product and seize any of the stocks of the product and the vehicle or receptacle or any other conveyance used or suspected to be used for carrying such stocks and thereafter take or authorize the taking of all measures necessary for securing the production of stocks or items so seized before the Collector or District Magistrate having jurisdiction under the provisions of the Essential Commodities Act, 1955 and for their safe custody pending such production;


(d) inspect, seize and remove with, such aid or assistance as may be necessary, books, registers, any other records or documents of the dealer, transporter, consumer or any other person suspected to be an employee or agent of the dealer, transporter or consumer;


(2) While exercising the power of seizure provided under sub-clauses( c) and (d) above, the authorized officer shall record in writing the reasons for doing so and a copy of such recording shall be provided to the dealer, transporter, consumer or any other concerned person, as the case may be.


(3) The provisions of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure shall, as far as may be, apply to searches and seizures under this Order.” (Emphasis supplied).

The Petitioner submits that notwithstanding the fact that the statutory powers of checking petrol pumps and for conducting search and seizures were given to the “Sales Officer” of oil companies, yet, with a view to according pecuniary favours to Respondents No. 10 and 11, Respondent No. 12, i.e. Secretary Petroleum, Shri Shrinivasan bypassed these legal provisions. In this way, Respondent No. 12 violated the law to favour private parties.

It is submitted and reiterated that when a statutory Notification made under the Essential Commodities Act, 1955, has accorded powers to “Sales Officer” to check petrol pumps and take samples, such powers could not have been conferred to private parties, namely, those in employment with Respondents No. 10 and 11. Obviously, this when seen from the fact that a mammoth order of about Rs. 200 crores was issued without public tenders and without doing any cost estimates, these all seem to have been done for oblique reasons.

4.3 THIRD: Conferring illegal statutory powers to private persons shall undermine the prosecution and administrative action process and will thus help adulterators:

The Petitioner submits that for the reason of the impugned contract, statutory powers have been conferred to private people to check petrol pumps and to initiate the process of administrative action for cancellation of petrol pump licence and to prosecute the offenders under the provisions contained in section 3 and 7 of the Essential Commodities Act, 1955, where punishment could go upto 7 years in imprisonment.

It is submitted that since Oil companies are statutory Corporations, as such for all administrative actions, they are required to follow the rules of natural justice and to abide by the provisions of law. Further, for the process of prosecution and trial of offences under Essential Commodities Act, 1955, all the rules of natural justice and legal provisions would be required to be followed.

The Petitioner submits that for the reason of the illegal of the exercise of statutory powers by the private persons, the entire process when it shall be subject to judicial scrutiny with reference to prosecution in criminal cases and also in the quasi-judicial process of taking administrative action for cancellation of petrol pump licence, these all shall get undermined ,and which in turn shall help the culprits escape.

The Petitioner submits that for this reason this contract turns inimical to public interest and as such it would become necessary for the same to be rescinded.

4.4 FOURTH: No requisite exercise done to prepare the estimated cost of the proposed work based on which further modalities of purchase is done – violations of CVC Circular:

The Petitioner humbly submits that it is an established procedure of effecting purchases to prepare the estimated rates before any contract is awarded. This ensures that there cannot be rigging of prices vis-à-vis the intrinsic cost of the supplies. In case the purchase is on a single offer basis then this requirement of preparing cost estimates becomes critically vital. However, in this case, no such cost estimates were made.

It is learnt that there are about 250 personnel deployed by the Respondents No. 10 and 11 for checking purposes. Further, it is seen that the quantity of marker put in kerosene is very little and that its import prices are shown to be astronomical. It could very much be possible that the profits could be to the tune of 500% to 1000% percent of the cost against the desirable average of 10 – 20% .

It is submitted that had there been an intensive exercise for preparign the cost break-up and the cost estimates, the price arrived at could have been more rational and credible.

It is further reiterated that the omission to make the cost estimates becomes enormously glaring for the reason that even the tenders were not called in this case and the entire dealing was done on a single bid basis.

That it was required to have made an estimated cost is clearly stipulated in para 5 of Chapter 5 the CVC Manual on purchase. The said chapter 5 of the CVC Manual is annexed herewith and marked as EXHIBIT-"H". the relevant part of which is quoted hereunder:

“As the estimated rate is a vital element in establishing the reasonableness of prices, it is important that the same is worked out in a realistic and objective manner on the basis of prevailing market rates, last purchase prices, economic indices for the raw material/labour, other input costs, IEEMA formula, wherever applicable and assessment based on intrinsic value etc.” (emphasis supplied).

It is seen thus from the above, that for the purpose of according pecuniary favours to Respondents No. 10 and 11, Respondent No. 12 through Respondents No. 2 to 5, i.e. the 4 public sector oil companies, violated these eminent principles of purchase and also violated the CVC guidelines in this reference.

4.5 FIFTH: No Environment Impact Assessment was done for introduction an extraneous substance i.e. the marker, in petroleum products – violation of Environment Protection Act, 1986:

It is seen that the zeal of Respondent No. 12, to accord pecuniary favours to private parties was so intense, that he ordered the purchase to be effected without the matter being examined by all the concerned statutory departments.

It is apparent that the action of putting marker in the petroleum products could lead to serious consequences on the standards of emission. In order to deal with such a thing, the following action was required to have taken by Accused No. 1 before he ordered the mixing to the marker chemical in the petroleum products:

(a) To obtain an Environmental Clearance through the process of making an Environment Impact Assessment in terms of the EIA Notification of 1994 (as prevailing in the year 2005 which has been later replaced by EIA of 2006 with analogous provisions). Since the act of the introduction of marker in the petroleum product was an act of modernisation, and since it altered the earlier EIA done with reference to the chemical composition of the final products, as such an Environmental Clearance in this respect was required for modernisation and change.

This requirement is apparent form the legal provisions contained in the said Notification, which is quoted hereunder:

2) Requirements and procedure for seeking environmental clearance of projects:

I.(a) Any person who desires to undertake any new project in any part of India or the expansion or modernization of any existing industry or project listed in the Schedule-I shall submit an application to the Secretary, Ministry of Environment and Forests, New Delhi.

It seen that entry No. 4. for “Petroleum Refineries including crude and product pipelines, isolated petroleum product storages”, an EIA and consequent Environmental Clearance was required. This however, was not done. (Emphasis supplied).

(b) To take the amended consent from the Pollution Control Board under section 21 the Air (Prevention and Control of Pollution) Act, 1981, since the addition of markers would alter the emission standards. This mandatory act however was not done.

It is also pertinent to note that there have been extensive environmental exercises conducted for the introduction of emission norms. As to how would the emission be affected by the markers, this fact was not ascertained. Obviously, if that had to be done, in that case, the conspiracy to award pecuniary favours to Accused No. 2 and 3 would have got frustrated.

4.6 SIXTH: Chemical composition of marker kept secret to suppress the real cost of the chemical vis-à-vis the price paid – criminal prosecution of the adulterators to be done on the basis of a secret chemical – no person can be deprived of his liberty based on a secret test process – violation of Article 14 and 21 of the Constitution of India:

It is submitted that Respondents No. 10 and 11 were given the tasks of sampling of the product. Without prejudice to the fact that sampling is a statutory procedure which a private party was not empowered to perform, the same notwithstanding, the chemical composition of the marker and its scientific co-relation with the testing procedure was kept as a business secret. Further, no technical evaluations were done to test the authenticity of the testing procedure.

It is also seen, that since the entire action would involve testing of the chemical composition of the marker to detect adulteration and based thereupon criminal prosecution was statutorily required to have been launched by lodging First Information Report (FIR) under section 154 Cr.P.C. for violation of Essential Commodities Act, 1955, for violation of the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005. As per section 10-A of this act the offences under section 7 are cognisable by the Police.

It is further submitted that as per section 7 of the Essential Commodities Act, 1955, the same entails a punishment of upto 7 years in imprisonment. If a person’s personal liberty is to be curtailed under such circumstances, this cannot be done on the basis of testing of a secret chemical.

It is vehemently reiterated that the fundamental consideration of natural justice would call for making the full process of testing the chemical presence of the marker to the person who is charged with offence and who may suffer imprisonment of upto 7 years. This is a fundamental Constitutional requirement in a liberal democratic state.

When the chemical composition of the marker was statutorily required to be known, and also that all other infrastructural requirements were also known, as such, it was required to have prepared the estimated cost of the purchase. This was all the more required because here the purchase was on the basis of a single bid.

It is further submitted that the report of testing shall be reckoned as an opinion of experts in terms of section 45 of the Indian Evidence Act, 1872. As per section 51 of this Act, the following is stipulated:

“51.Grounds of opinion, when relevant: Whenever the opinion of any living person is relevant, the grounds on which such opinion is based are also relevant.

Illustration:

An expert may give an account of experiments performed by him for the purpose of forming his opinion.”

It is seen that it is a statutory requirement that if any testing is done of a chemical product complete details of such testing is required to be given as per the provisions of the Indian Evidence Act, 1872, quoted above. However, in this case, the chemical composition of the marker and its scientific nexus with the results of testing has not been made specific. In fact, much of the chemical properties of the marker have been kept as a business secret. Obviously, this is against the statutory requirement.

It is thus seen that for highly suspicious reasons, Respondent No. 12, ordered the purchase to be made of a secret chemical based on which people would have got subjected to gruelling criminal prosecutions. It is needless to add that for an efficient administration of the State criminal prosecutions would have to be necessarily done on right persons for the right reasons and right evidence. Unfortunately, because of this statutory infringement, the critical problem of fuel adulteration has turned haywire and the "Rule of Law" in this sphere has suffered a substantial jolt.

In sum, laws were violated to accord a pecuniary advantage to private persons by a public servant. This thus constitutes an offence under section 13(1) (d) of the Prevention of Corruption Act, 1988.

4.7 SEVENTH: Statutory procedure for testing given in Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005, - statutory procedure bypassed and replaced by the procedure imposed by a private company:

The Petitioner humbly submits that it is a settled position in law that if there is a prescribed statutory procedure, in that case, it is that procedure alone which has to be followed. No self-devised procedure can be erected, howsoever plausible it may be, to replace such statutory procedure. The correct way to do so has to be by making an amendment to the statutory procedure.

It is seen that the procedure followed by Respondents No. 10 and 11 in this case would require sampling of the impugned product. However, as per Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 it is the authorised officer alone who can conduct sampling. This is apparent from Clause 7 and 8 of the said Order that the authorised officer is the Sales Officer of a Government Oil Company who can take samples. The statutory provisions in this respect are quoted hereunder:

8. Sampling of Product :-

(1) The authorized officer under clause 7 shall draw the sample from the tank, nozzle, vehicle or receptacle, as the case may be, in clean aluminum containers, to check whether density and other parameters of the product conform to the requirements of Bureau of Indian Standard specifications number IS 2796 and IS 1460 for motor spirit and high speed diesel respectively. Where samples are drawn from retail outlet, the relevant tank-truck sample retained by the dealer as per clause 3(b) would also be collected for laboratory analysis.

(2) The authorized officer shall take and seal six samples of 1 litre each of the motor spirit or three samples of 1 litre each of the high-speed diesel. .......

(3) The sample label shall be jointly signed by the authorized officer who has drawn the sample, and the dealer or transporter or concerned person or his representative and the sample label shall contain information as regards the product, name of retail outlet, quantity of sample, date, name of the authorized officer, name of the dealer or transporter or concerned person or his representative;

(4) The authorised officer shall forward the sample of the product taken within ten days to any of the laboratories mentioned in Schedule III or to any other such as laboratory when it may be notified by he Government in the Official Gazette for this purpose,for analysing with a view to checking weather the density and other parameters of the product conform to the requirements of Bureau of Indian Standard specifications No. IS 2796 and IS 1460 for motor sprit and high speed diesel respectively.

(5) The laboratory mentioned in sub -clause(4) shall furnish the test report to the authorised officer within twenty days of receipt of sample at the laboratory.

(6) The authorised officer shall communicate the test result to the dealer or transporter or concerned person and the oil company, as the case may be, within five days of receipt of test result from the laboratory for appropriate action.” (Emphasis supplied).

From the aforesaid statutory provisions, it is clear that it is the “AUTHORISED OFFICER” alone who can take samples. It is also seen that it is the authorised laboratories alone which can test such samples.

Notwithstanding such statutory stipulations, yet Respondent No. 12 went ahead and conferred statutory authority to draw and test samples to private persons have no authorisation despite the fact that the law provided for otherwise. In this way, Respondent No. 12, by abusing his official position and by violating express provisions of law accorded a pecuniary favour to Respondents No. 10 and 11.

4.8 EIGHTH: Petroleum Planning & Analysis Cell, whose job was only to conduct a study and to frame specifications, was made to exceed its brief and thereby recommended the names of Accused No. 2 and 3 for the contract:

It is submitted that the job assigned to the Petroleum Planning & Analysis Cell was only to conduct a study with reference to markers. However, instead of doing this study and to examine if there are resources available in India in this reference, and also if it can be locally manufactured, without looking into such comprehensive factors, the said Cell straightway recommended the name of Respondent No. 10 for awarding contract.

Thus, when the brief of the Cell was only to conduct a technical study, the act of this Cell in exceeding its brief for according pecuniary favours of a huge nature, becomes clearly an act of criminal misconduct. Obviously, as apparent from the circumstances, it is Respondent No. 12, which was the ‘invisible hand’ directing the entire sequence of actions. The exact nexus in this respect shall become apparent during the course of statutory investigation in terms Chapter XII of the Code of Criminal Procedure, 1973.

4.9 NINTH: No Approval was taken from the state authorities under the Standards of Weights and Measures Act, 1976:

It is apparent that through the process of introduction of the markers in the petroleum products, the consumers would be getting effectively less net quantity of the chemical product which they would be buying from petroleum products dispensing outlets. Since this would have implications with reference to the weight of the net product, as such, it was required that approval be taken from the Department of Legal Meteorology for the introduction of an extraneous element in the petroleum products. This legal requirement, however, was not fulfilled. Obviously, it was done to accord pecuniary favours to private parties.

4.10 THIRD: The credentials of the Mssrs. SGS was not ascertained before order was given:

It is the basic requirement of approval of any tender that the credentials of the parties be ascertained in a proper manner. In this respect, the background of the promoters and of the management team of the company/firm be found out. In such purchases, several other documents would be required to be submitted. In this case, no such requisite exercise was done and a contract having a pecuniary value of about Rs. 200 crores was awarded on the basis of a single offer and without conducting any mandatory exercise of preparing the cost estimates.

4.11 ELEVENTH: No approval of Finance Ministry was taken:

Without prejudice to the fact that marker is not a proprietary product since there are several manufacturers, yet, if at all a single tender had to be called presuming that this marker was a proprietary product, in that case, the following conditions were required to be satisfied:

(a) To first ascertain it was a proprietary product.

(b) To make an estimate of the value through cost break-up.

(c) To justify the entire action for dispensing with tenders.

(d) To take approval of the Finance Department.

(e) To take specific approval of the Competent Authority.

The aforesaid is substantiated from the CVC instructions in this reference the text of which has been in the foregoing and which for the sake of convenience is once again quoted below:

6.3 …………. In case of proprietary purchases, the detailed justification for purchase from a single vendor is not being placed on record. As by issuing single tender, the competition is totally eliminated and the possibility of paying higher prices cannot be ruled out.

• It is imperative that the purchase on Single tender basis be made with the detailed justification in its support and with the approval of Competent Authority, including associated finance. (Emphasis supplied).

It is seen that notwithstanding the instructions issued by the CVC, and by violating the established procedures of purchase and by sacrificing the eminent canons of financial propriety, the said pecuniary favours were bestowed by Respondent No. 12, with the help of Respondents No. 2 to 5, to Respondents No. 10 and 11.

4.12 TWELFTH: Renewal of contract done by repeating the violations of laws detailed herein:

It is further submitted that the contract was initially awarded for a value about Rs. 100 crores for one year. Once that period was over, it was required that fresh tenders be called for effecting further purchases of goods and services. However, it seems that the rules in this respect were given a complete go-by and the contract was arbitrarily extended by a further period of one year. In this way the quantum of the scam increased from the initial Rs. 100 crores to Rs. 200 crores.

4.13 THIRTEENTH: Private parties made to perform statutory functions without their being made public servants – such persons getting immunity from corruption laws:

It is submitted that for the reason of the impugned contract, private parties have been given statutory functions of conducting seach and sampling action in the petrol pumps. This work is generally done by statutory functionaries who are governed by the provisions of Prevention of Corruption Act, 1988.

It is submitted that in case the officers of this private company while performing their functions indulge in corruption, in that case there will be no remedy before the affected parties to seek a redress from Anti-Corruption agencies. Had it been otherwise, the public servants performing statutory functions would have got governed by the provisions of Prevention of Corruption Act, 1988.

The Petitioner humbly submits that this situation is illogical and becomes discriminatory and is against the principles enshrined in Article 14 of the Constitution of India.

4.14 FOURTEENTH: Clear-cut offence of criminal misconduct by public servant made out against public servants:

The Petitioner humbly submits that the aforesaid affords a reasonable opportunity to suspect that an offence under section 13(1)(d) of the Prevention of Corruption Act, 1988, has taken place. This is apparent from the said provisions from this Act which is quoted hereunder:

13 . Criminal, misconduct by a public servant- (1) A public servant is said to commit the offence of criminal misconduct, --

……….
(d) if he, --

(i) by corrupt or illegal means, obtains for himself or for any other person any valuable thing or pecuniary advantage; or

(ii) by abusing his position as a public servant, obtains for himself or for any other person any valuable thing or pecuniary advantage; or

(iii) while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public, interest; or”

From the legal provisions quoted above, it is clear and apparent that the public servants have abused their official position by awarding contract on a single offer basis without preparing any previous cost estimates by flouting CVC Manual which they otherwise were obliged to follow. The said public servants have also acted in a manner which is contrary to law. That being so, there is a clear-cut case made out for registering FIR under these cognisable sections of law for the purpose of conducting investigation as per the provisions contained in Chapter XII of the Code.

5. The Petitioners humbly submit that for the reasons cited in the foregoing paras, particularly the violations of laws catalogued with precise specifics, in para 4.1 to para 4.14 above, relief including interim relief may be granted to the Petitioners as is prayed hereunder.

6. The Petitioners further submit that a substantial cause of action has arisen within the jurisdiction of the Hon’ble Court. The two oil companies which have placed order i.e. HPCL and BPCL have their Headquarters in Mumbai and have placed orders from Mumbai. The private company i.e. SGS (India) Ltd. also has got its Headquarters in Mumbai. The criminal complaint which has been filed in the matter has been done before the Joint Director, CBI, West Zone, Mumbai. That being so, this Hon’ble Court can therefore, entertain and try this Petition.

7. The Petitioners further submit they have no other remedy but to approach this Hon’ble Court under Article 226 of the Constitution of India.

8. The Petitioners has not filed any other Petition in respect of the subject matter of this Petition in any Court in India except as mentioned above.

9. That Petitioners will rely on documents a list whereof is annexed hereto as also other documents which are in the exclusive possession of the Respondents.

10. The Petitioners further submit that there is no delay or latches that may be attributed in the filing of this Petition.

11. The Petitioners submit that the prescribed Court fees have been paid.

PRAYERS

For the specific reasons cited in the foregoing, the Petitioners pray for the issuance of appropriate Writs under Article 226 of the Constitution of India as under:

(A) THAT Respondent No. 1 to 5 be directed to cancel the orders given to a private company to perform statutory functions which only statutory functionaries can perform.

(B) THAT Respondent No. 1 to 5 be directed to cancel the contract given to Mssrs. Authentrix and its Indian subsidiary, namely, SGC (India) Ltd. since the same violates a host of laws including the Essential Commodities Act, 1955, Environment Protection Act, 1986 and the express instructions issued by the Central Vigilance Commission.

(C) THAT the Central Bureau of Investigation be asked to register a Regular Case in the matter against the accused persons without delay and to conduct proper investigation under Chapter XII of the Cr.P.C.

(E) THAT during the tenure of pendancy of this Petition, personnel of private company, namely, SGS (India) Ltd. be asked not to perform any statutory functions under the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005, issued under section 3 of the Essential Commodities Act, 1955.

(F) That the cost of this Petition may be awarded.

(G) Any other relief order which this Hon’ble Court may deem fit to pass in the interest of justice.

PETITIONER

Place: Mumbai

Date: 15th June, 2008

Petition Drafted by: Y.P. Singh, Advocate

ADVOCATE FOR THE PETITIONERS

VERIFICATION

We, the Petitioners above-named, solemnly declare that what is stated in paragraphs Nos. 1 to 5 of this Petition is true to the best of my knowledge and what is stated in remaining paragraphs is stated on information and belief and I believe the same to be true.

Solemnly affirmed on

This ______ day of December, 2007.

DEPONENT DEPONENT

BEFORE ME BEFORE ME

4.1 FIRST: Statutory functions conferred on private

Contract awarded without preparing specifications:

One of the basic rules for effecting any purchase is that detailed specifications for the product have to be determined. It is only after such specifications are made that they form the basis of the issuance of global tenders.

It is apparent from the enclosed papers that no attempt was made at all to first define the specifications of the product solicited for purchase. Obviously, the intention of omitting this procedure was to accord favour to this private party. Had the specifications been made precise, in that case, several parties would have come forward to making their offers for the supply of the solicited items.