SCR’s ‘inferior quality’ linen worth 13cr under CBI radar

Hyderabad: The Central Bureau of Investigation has filed a case against representatives of Bunkar Jatiya Hathkargha Sahkari Samiti Ltd (BJHSSL), a cooperative society based in Kanpur, and unidentified officials of South Central Railway, Secunderabad, for alleged irregularities in the supply of more than three lakh ‘substandard' bedsheets for use in trains.‘Estimated cost 12.8cr'The case arises from a tender issued by SCR's chief materials manager (CMM) in May 2023 for the procurement of 3,39,542 handloom cotton bedsheets, with an estimated cost of 12.8 crore. BJHSSL, being the lowest bidder (L1), secured the contract to supply 60% of the bedsheets (2,54,657 units) for 7.87 crore. The remaining 40% (1,69,770 bedsheets) was awarded to the West Bengal State Handloom Weavers' Cooperative Society Ltd.However, the first batch of 1,40,000 bedsheets supplied by BJHSSL in Oct 2023 failed quality checks by the textile committee, Hyderabad, which determined that the materials did not meet the required specifications. Despite this, BJHSSL proceeded to deliver the second batch of 1,14,657 bedsheets in Nov 2023 without further testing or quality assurance.Wrongful loss to SCR: CBIPayments for the second batch were processed, despite the issues raised in previous inspections. A sum of 3.5 crore was adjusted against the payment for the second lot, leaving an outstanding balance of 78.2 lakh. CBI alleges that this resulted in a wrongful loss to SCR and an unjust gain for BJHSSL.‘No standard protocols'The investigation further revealed that BJHSSL requested SCR to change the inspection agency from RITES, New Delhi, citing an overload of work at RITES. SCR officials approved the change to Intertek India Private Ltd without following the necessary verification procedures or standard protocols. This alteration in the inspection agency led to the acceptance of substandard materials.Moreover, officials issued unauthorised instructions to divert and accept materials at depots in Hyderabad and Secunderabad under pretext of emergency needs, despite lack of proper indent.Probe on pubic servantsCBI has charged BJHSSL and unidentified SCR officials under sections 120-B (criminal conspiracy), 420 (cheating) of the Indian Penal Code, and sections 13(2) read with 13(1)(a) of the Prevention of Corruption Act, 1988. The agency is investigating whether public servants received undue benefits for facilitating the acceptance of substandard supplies.