CBI books Tata Projects, arrests 5 company executives in bribery probe

Executive director of Power Grid also held for 'granting favours' in NE projects

The Central Bureau of Investigation (CBI) has filed a criminal case against Tata Projects and arrested its five executives and one government official belonging to Power Grid Corporation over illegal gratification charges.

The probe relates to the power system improvement project in the north-eastern region.

The accused were produced on Thursday in the Panchkula court, where they were sent to a CBI remand until July 15, the official said.

The action follows search operations at 11 premises by the federal agency since Thursday morning -- in Gurugram, Noida, and Ghaziabad where it has recovered numerous alleged incriminating documents, materials, digital devices, and Rs 93 lakh in cash from the residence of Bimlendu Shekhar Jha, executive director of Power Grid Corporation.  

The agency has also arrested five executives of Tata Projects, including Vice-President Desh Raj Pathak and Assistant Vice-President R N Singh.

It was noted that Tata Projects had bagged tenders, pertaining to a comprehensive scheme for the northeastern states, especially Arunachal Pradesh and Sikkim, from Power Grid.

Jha, who was posted in Itanagar, was under the CBI's surveillance after the agency got inputs that he was allegedly receiving bribes from the executives of Tata Projects and other companies for “granting favours”.

Tata Projects was given the contracts under the World Bank-funded North Eastern Region Power System Improvement Project, a comprehensive scheme for improving the power infrastructure of the region. The company was working in the Sikkim and Arunachal Pradesh regions under the said scheme.

“Jha was acting in pursuance of a criminal conspiracy extending favours to Tata Projects for several works, including preparation of inflated bills, early clearing of bills, and price variation clause, in lieu of demand and acceptance of illegal gratification from the company," a statement from the CBI said.

Tata Projects stated: "We adhere to strong norms in all our business transactions and have zero tolerance for any compromise on the same. We would extend our complete support to the relevant authorities."

There was no response from Power Grid on the arrests.

Tata Projects -- in existence for just over 40 years -- has acquired expertise in executing large and complex urban and industrial infrastructure projects, and in implementing complete mining and metal purification systems, according to its website.

The Noida airport project at Jewar is one among a series of high-profile assignments that the Rs 13,679-crore company has bagged in recent years. It is also involved in the construction of the new Parliament building as part of the government's ambitious Central Vista project in Delhi, as well as the Trans Harbour Link in Mumbai. 

The case

Tata Projects given contracts under the World Bank-funded North Eastern Region Power System Improvement Project

Bimlendu Shekhar Jha, executive director of Power Grid, allegedly extends favours by preparing inflated bills and tweaking variation clause

Search conducted at 11 locations in Gurugram, Noida, and Ghaziabad

Accused sent in CBI remand until July 15