New Delhi: Former Jammu and Kashmir governor Satyapal Malik is under investigation by the Central Bureau of Investigation for allegedly benefiting from kickbacks received during the award of a Rs 2,200 crore contract for civil work at a hydroelectric project in Jammu’s Kishtwar district, ThePrint has learnt.
Malik said in October 2021 that he had received an offer of a Rs 300 crore bribe to clear two files when he was the J&K governor from 23 August 2018 to 30 October 2019. One was for civil work worth Rs 2,200 crore at the Kiru hydroelectric project. In April 2022, the CBI booked Chenab Valley Power Projects Pvt Ltd (CVPPPL) officials, among others, in the case.
Malik, who has claimed to be a witness in the case so far, turned suspect after his alleged involvement came to the fore during the CBI investigation, said a source. The CBI never called Malik a witness but had earlier called him in for questioning for “clarifications”.
“He has been claiming to be a witness or a whistleblower in the case. But, during our investigation, we found him connected with the beneficiaries of kickbacks. He is suspected to be one of the beneficiaries now, and we are probing that,” a source said.
The CBI, the source said, has found a lack of due process during the tendering and is currently scrutinising all seized documents.
“First, the tender was cancelled in a board meeting after it was deemed inappropriate. Then, suddenly, it was revived and awarded to Patel Engineering in the next meeting,” the source said.
ThePrint tried to contact Malik over the telephone. However, his friend, who received the call on his phone, said, “He is admitted and not in a condition to talk as of now and will be available only later.” This report will be updated once Malik responds.
On Thursday, the CBI searched 30 places, including three premises belonging to Malik in Delhi, Haryana’s Gurugram, and Uttar Pradesh’s Baghpat. The raids, said a CBI spokesperson, found digital and documentary evidence of cash deposits and investments in fixed deposits and properties in various cities.
However, Malik said the agency is targeting him as he has been openly critical of the government.
The other file that had come up in Malik’s claims was a group medical insurance scheme for government employees. The CBI booked Anil Ambani’s Reliance General Insurance Company and Trinity Reinsurance Brokers in that case.
“After going to Kashmir, two files came to me (for clearance) — one belonging to Ambani, and another to an RSS-affiliated man, a minister in the previous Mehbooba Mufti-led PDP-BJP coalition government, claiming to be very close to the prime minister (Narendra Modi),” Malik had said in 2021. “I was informed by secretaries in both departments that there is a scandal and I accordingly cancelled both deals.”
During a gathering at an event in Jhunjhunu in Rajasthan in October 2021, Malik further said, “The secretaries told me ‘You will get Rs 150 crore each for clearing the files,’ but I told them that I had come with five kurta-pajamas and would leave with that only.”
Also read: Kiru Hydropower corruption case: CBI searches J-K ex-Guv Satya Pal Malik’s premises
Two FIRs
The hydel project’s contract award did not follow e-tendering guidelines, according to the CBI FIR. Its investigation found Patel Engineering got the contract via inappropriate means, and kickbacks were involved.
The accused named in the FIR include IAS officer Navin Kumar Choudhary, the then CVPPPL chairman; M.S. Babu, the then CVPPPL managing director; M.K. Mittal and Arun Kumar Mishra, the then CVPPPL directors; Patel Engineering Ltd; and unidentified others.
The FIR, which ThePrint had accessed, said the 47th CVPPPL board meeting decided on re-tendering with a reverse auction after the cancellation of the ongoing tendering. But that did not happen, and Patel Engineering won the contract, according to a decision taken at the 48th meeting.
The company was allegedly favoured over others and won a contract in violation of rules in exchange for “pecuniary benefits”, the source told ThePrint.
According to the other FIR in the medical insurance scheme, unidentified officials in the finance department of the Jammu and Kashmir government abused their position in conspiracy and connivance with Trinity Reinsurance Brokers, Reliance General Insurance Company, and other unidentified public servants and private persons to commit the offences of criminal conspiracy and criminal misconduct.
The FIR said they caused “pecuniary advantage to themselves and wrongful loss to state exchequer” from 2017 and 2018 and “cheated the government of Jammu and Kashmir”.
The FIR said the contract awarded to Reliance General Insurance glaringly deviated from government norms. There was no online tender, and conditions that had originally been there, such as a stipulation that the vendor should have experience working in the state and have a turnover of Rs 5,000 crore, were removed.
(Edited by Madhurita Goswami)
Also read: Was told I will get Rs 300-cr if ‘Ambani’, ‘RSS-linked man’ deals are cleared: Satya Pal Malik