The Enforcement Directorate (ED) has registered a money laundering case against middleman Sanjay Bhandari and others including South Korea-based Samsung Engineering Co. Limited (SECL) in connection with an “illegal” consultancy agreement for a Gujarat-based project worth ₹6,744.32 crore.
Also read: CBI books Sanjay Bhandari, Samsung Engineering for ‘corruption’ in Dahej project
The probe is based on a case instituted by the Central Bureau of Investigation (CBI) on June 30. Among the suspects are unknown officials of ONGC Petro Additions Limited (OpaL), Santech International FZC in the United Arab Emirates (UAE), in which Mr. Bhandari was a director; Foster Wheeler Energy Limited (FWEL)-UK; and Hong NamKoong, the then SECL senior manager.
The CBI has alleged that Santech International entered into a consultancy agreement with SECL in October 2007, in violation of the terms of a contract between OPaL and SECL. The accused received about $50 lakh from SECL in June 2009 for the job.
The agreement was for ensuring favours to the SECL consortium in the award of the Dual Feed Cracker Unit project contract in Gujarat’s Dahej.
Also read: ED submits charge sheet against defence dealer Sanjay Bhandari via email
In the income tax returns, Mr. Bhandari did not share details of the Santech International’s overseas account and receipt of funds, as alleged.
According to the CBI, the tender document did not have any provision for advance payments. However, the OPaL board approved it on the bidders’ request. In its 2015 report, the Comptroller and Auditor General had objected to it, while also observing that the project completion was delayed.
The agency suspects a link between the payment for consultancy and purchase of a London property by Mr. Bhandari by acquiring 100% shares of Vertex Management Holdings Limited-U.K. for 19 lakh pounds. He was the company’s owner from December 2009 to November 2012. The same property was later sold to UAE-based Skylite Investments in 2011-12.
Mr. Bhandari’s role is being probed in several defence contracts. In June 2019, the CBI had registered a case against him and others for alleged corruption in the ₹2,895-crore deal for 75 Pilatus basic trainer aircraft in 2009.
The Enforcement Directorate has already filed a charge sheet against the middleman in a separate money laundering case, on the basis of the Income-Tax Department's findings.
