To, The Chief Minister, Government of Meghalaya Shillong

13/05/10

SUB: COMPLAINT ABOUT IRREGULARITIES IN PURCHASE OF CGI SHEET BY HOUSING DEPARTMENT AND SUPPLY OF THE SAME BY THE AUTHORISED DEALER OF STEEL AUTHORITY OF INDIA LTD BETWEEN 2003-2006 Dear Sir, We in Meghalaya Right to Information Movement would like to appreciate your statement in the press about calling for records and pro-actively investigating the irregularities in purchase and supply of CGI sheets in the Housing Department. We would therefore like to officially lodge a complaint about purchase of CGI sheets by Housing Department and supply of the same by the Authorised Dealer of Steel Authority of India Ltd. This complaint is based on access to official documents provided by the Right to Information Act 2005. Let us apprise you of the facts shared at the Public Hearing on 4th May 2010, where all the stakeholders were invited, including officials of the Housing Department, SAIL and Authorised dealer of SAIL. There was a short supply of CGI sheets to Housing department by the authorized dealer of SAIL between the years 2003-2006. Refer to Annexure 2 & 3 . Annexure 2 is the official reply to RTI from Housing department and lists the quantity of CGI sheets received by officers of your department and Annexure 3 is the official reply by SAIL about the quantity lifted by the dealer from SAIL. Let us summarise it for you. Year Quantity Claimed to Quantity lifted by the have been received by dealer from SAIL Housing (in MT) Stockyard, Guwahati (In MT) 2003-2004 1392.90 152.40 2004-2005 1510.516 1181.94 2005-2006 1470.03 1265.45
1.

This can only be possible if there is an active collusion between Housing department and the dealer to shortchange the public. Checks and balances in the department conveniently failed to detect this anomaly, for example they managed to convert 152.40 MT of CGI sheets to 1392.90 MT. This level of cheating of public money and trust beggars belief. Blame for this squarely lies on the department and its officers and the dealer. This carries not only a concrete financial implication, but also can be translated into a number of poor, who because of this blatant corruption were denied 3 bundles of CGI sheets (refer Annexure 5 Assembly

debates 11th DECEMBER, 2006 ). Let us now summarise this financial implication.
Year Quantity Claimed to have been received by Housing (in MT) Amount paid for CGI Sheets (in rupees) Average Price/MT paid by housing (Freight, tax, margin etc. delivery to dist. headquarters (in rupees/MT) 37,762.85 43,125.40 51,522.58 Quantity lifted by the dealer from SAIL Stockyard , Guwahati (In MT) SAIL Price excl TAX, freight etc.(G) (in rupees/M T) Short Fall Excess Money paid by Housing Department to the dealer/supplier

20032004 20042005 20052006 Total Exces s Mone y paid to the Dealer /Suppl ier

1392.90 1510.516 1470.03

5,25,99,878 6,51,41,605 7,57,39,738

152.40 1181.94 1265.45

28,350 30,000 30,166

1240.5 328.576 204.58

4,68,44,815.40 1,41,69,971.40 1,05,40,489.40 7,15,55,276.20

This criminal misconduct does not stop with short supply. It extends to the quality of CGI sheet supplied. Between 2003-2006, according to a reply by the Minister in Meghalaya Legislature on Assemby Debates 11th DECEMBER, 2006 (Refer to Annexure 5) class VII CGI sheet was purchased by the department and distributed to the beneficiaries. But Housing departments reply and copies of dealers bills tell a different story (Annexure 4 & 6 ). Year Quality Claimed to Quality Claimed to have have been been distributed by the received by minister Housing (A) 2003-2004 CLASS VIII CLASS VII 2004-2005 CLASS III CLASS VII 2005-2006 CLASS I CLASS VII
2.

But if you refer to photographs of SAILs invoices taken during the inspection on 16/04/08 ordered by Central Information Commission, New Delhi (Annexure 7 & 8 & 9) and their reply (Annexure 3) it is clear that the dealer has been lifting the cheapest and lowest quality CGI sheet from them, i.e. Class VIII(eight). So in spite of all the inspection, dealer managed to palm off Class VIII sheets to Housing Department and department in its turn shifted the shoddy goods to the poor and

dispossessed, while paying the dealer for non-existent Class III(three) and Class I(one) CGI sheets This criminal misconduct meant that the dealer was paid almost Rs. 2 crores illegally. These are the facts substantiated by Housing Departments and SAILs own RTI replies. We have only put two and two together and brought to public and now to your notice this galling and criminal activity done by the dealer in collusion with Housing department. So now keeping these facts in mind, we request you to:
1.

Initiate an enquiry. Call for all the records from SAIL and Housing Department including Invoices to confirm all our findings.

2.

Initiate criminal proceedings against those public servants who allowed this criminal breach of trust, misappropriation, cheating and fraud to take place. 4. While enquiry is conducted suspend all the officers responsible for misconduct and if enquiry finds them guilty, take action on them according to law. 5. While enquiry is conducted suspend all orders and bill payment to the dealer from government. And when found guilty recover all the money misappropriated with penalty interest from the dealer. Furthermore blacklist her and her firm from all future government contracts. 6. Have open and transparent tender process for all future purchases of this magnitude. We emphasise that the enquiry needs to be quick and decisive to send a message to the public that government takes the issue of corruption seriously.
3.

Thanking You,

Meghalaya Right to Information Movement

Annexures Application under RTI Act 2005 to the Department of Housing, Govt. of Meghalaya. 2. Reply from Housing No. DH/Tech/8/2006/4 dated 9th August 2006 3. Reply from SAIL PR/RTI/8/2006-07/67 dated 19 March 2007
1.

4. 5. 6. 7.

8. 9.

Reply from Housing No. DH/Tech/8/2006/6 dated 16th October 2006 Assemby Debates WEDNESDAY, THE 11th DECEMBER, 2006 http://megassembly.gov.in/bulletin/2006/11-12-2006.htm Bills submitted by the dealer to Housing department and passed by housing department. Order of Central Information Commission Decision No. 1828/IC(A)/2008 F. No. CIC/MA/A/2007/00503 dated 11th January 2008 allowing us to inspect SAIL records Inspection report CMO/Rec/BSO/Guw/RTI/08-09 dated 16/04/08 Photographs of Invoices from SAIL taken during inspection of records at SAIL Branch office in Guwahati