BHEL awarded 2 contracts to banned firm: CAG

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BHEL
New Delhi, Jul 10: In a latest report by the government's official auditor Comptroller and Auditor General (CAG) pointed out that Bharat Heavy Electrical Ltd (BHEL) awarded two contracts worth Rs 26.61 crore to a company which was banned by the power equipment manufacturer.

CAG said, "The company contravened its laid down guidelines and ethical practices by placing contracts worth Rs 26.61 crore to a banned firm."

Earlier, the banned company was found to have indulged in forming a cartel to bag orders quoting higher prices. The allegation about formation of the cartel was made by the Heavy Power Equipment Plant, a unit of BHEL in 2006, after which the company was banned from doing any business with the power manufacturer.

The report said, "Notwithstanding such a ban, the Project Engineering Management, another unit of BHEL, awarded two works to the banned firm at a total price of Rs 26.61 crore on the plea that these were 'ongoing' contracts as the tenders had been invited before issue of the banning order."

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