CBI books Tata Consulting Engineers, JNPT officials for alleged running of cartel

MUMBAI: The Central Bureau of Investigation (CBI) has booked the project manager of Tata Consulting Engineers (TCE), the chief manager of the Jawaharlal Nehru Port Trust (JNPT) and unknown officials for allegedly causing a loss of Rs 800 crore to the exchequer by running a cartel and awarding contracts to selected international bidders.

According to a first information report (FIR) filed earlier this week, Sunil Kumar Madabhavi, the chief manager (PP&D) of JNPT at the time, in conspiracy with Devdutt Bose, the then project manager of TCE, a Tata Group company, allowed complementary bidding in the tendering process. By doing so, they allowed the formation of the joint venture by the solely eligible bidders - Boskalis Smit India LLP and Jan De Nul Dredging India Pvt.Ltd. (also known as BSI-JDN JV).

The agency has alleged that the Competition Commission of India guidelines were violated in the process.


The FIR adds that a shadow bidding arrangement was put in place to support the cartel formed by Boskalis Smit India and Jan De Nul Dredging India. It said "this was allowed by Madabhavi in connivance with Bose, project manager from M/s TCE and other unknown persons, thereby allowing the said cartel to participate in the bidding process for capital Dredging Phase-ll through their joint venture namely BSI-JDN JV."

ET has seen a copy of the FIR. It also said that payments amounting to Rs 348 crore in phase-ll for work already executed in phase-l, without actually performing the work, was paid, thereby causing undue advantage to BSI-JDN JV. The dredging work was carried out in two phases - Capital Dredging Project Phase I and Capital Dredging Project Phase Il.

The CBI has mentioned the period of the scam as 2003 to 2019, when the two phases were executed.

The FIR said "several stringent Project Qualifications (PQ) criteria and tailor-made specifications were inserted in the tender documents of Phase - ll to eliminate the Indian bidders from the competition and to the advantage of the international bidders".