Nasty gift for outgoing GAIL director PK Jain

Vol 18, PW 18 (07 May 15) People & Policy

Outgoing GAIL director finance PK Jain received the worst possible farewell gift on his last day at work on April 30 when the oil ministry froze his retirement benefits pending the outcome of a corruption investigation.

Jain is under scrutiny for his involvement in the award of a Rs68cr ($11m) petrochemicals facilities contract at Vijaipur in Madhya Pradesh to Delhi-based contractor Avinash Em. On April 26, the Central Vigilance Commission (CVC) sent an interim report to the ministry accusing GAIL's Empowered Committee on Contracts and Procurement (ECCP) of favouring Avinash when awarding the contract on May 1, 2012.

“We have examined the contract award,” says an officer close to the investigation. “Other irregularities after that contract will also be investigated.

We have suspicions about the role of the ECCP, the tender committee and the consultant (EIL).” PETROWATCH learns the CVC carried out a three-day inspection of GAIL’s contract files with Avinash Em from April 14-16.

GAIL’s ECCP is headed by chairman BC Tripathi, director finance Jain and (then) director projects RD Goyal. “As Jain was retiring on April 30 the CVC expedited its report and sent it to the ministry for action,” says a source.

“This matter is related to the award of a contract based on a fake company balance sheet. Jain’s role was crucial as he heads the finance department.

He will now be charged.”

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