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Mining troubles: Rajasthan High Court orders ACB to probe RSMM Calcite case

RSMML MD Bhanu Prakash Yeturu is on the line of fire. In a 2-year old Calcite supply case, HC orders ACB to probe allegations against Yeturu

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Goverdhan Singh and Bhanu Prakash Yeturu
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More troubles are brewing for IAS Bhanu Prakash Yeturu. Rajasthan High Court, acting on a petition filed by one Parmeshwar Pilania, has directed Director General, ACB to initiate a preliminary investigation into Calcite scam case and file an FIR within 15 days if proved criminal. Justice B  L Sharma pulled up ACB DG Alok Tripathy, I G Sachin Mittal and IG V K Singh for not initiating any action even 2 years after the matter came into their cognisance.

The petitioner has accused Rajasthan State Mines and Minerals Limited (RSMML) Managing Director Bhanu Prakash Yeturu and the then Financial Advisor T R Agrawal to connive with owners of Surabhi Process slapping a loss of Rs 2 crore to the exchequer.

What's the matter

RSMML procures Calcite as an additive mineral for its unit has n Jhamar Kotda.

For the procurement of Calcite, a legal tender process is followed in which it is ensured that the supplier has its own mines and capacity. But in June 2013, before issuing the tender, precondition of supplier being a mine owner was relaxed. Due to which those suppliers who were not having their own mines too became eligible for the bid. The petitioner has accused Yeturu of benefitting Surabhi Process by relaxing conditions in the tender which resulted in loss of Rs 2 crore to the exchequer.

How the Game was Played

After removing the clause of 'owning mine', the tender was opened in favour of Surabhi Process on January 3, 2014. A similar order was issued in favour of M/s Kalpana Minerals and Chemicals on July 10, 2014. After winning the bid, Surabhi Process supplied RSMML marble blocks and limestone in place of Calcite and received payment worth crores billing it in the name of Crystoline Metamorphoral Calcarea additive. The then Senior Manager of RSMML reported that irregularity and brought it on file. But payment of Rs 2.14 crore was made without seeking any explanation.

Bid cancelled after complaint

The case was brought to the notice of Mines Directorate as to how payment was made despite observation of Senior Manager. The Mines Directorate clarified that no other mineral can be supplied on mining lease approved for marble blocks. After that on 26th June, 2015, the agreement of Surabhi Process and Kalpana Mineral was quashed. Both the companies had mining lease issued only for marble blocks. In such case, both the companies were the beneficiaries of removing the precondition.

After quashing the agreements, Yeturu invited the bid again to procure Calcite. Surprisingly, the name of the mineral was changed from Calcite to additive. In the tender, Surabhi Process not only got priority but also the rate of supply contracted earlier at Rs 786.82 was a increased to Rs 1050. This gave Surabhi Process a monetary benefit of Rs 87 lakh to Rs 1 crore. Had the name of mineral been written Calcite or marble block other companies could easily have participated. By just changing name of the mineral, RSMML got Surabhi Process as the single bidder.

Gordhan Singh, counsel, High Court said that the case will be fought till the justice is meted out. "We will not let hard earned money of public go to wrong hands. We have been fighting for the cause for last two years. Had the case been not serious, the court would not have given strong directions," he said.

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