NEW DELHI: Indian government said there was a clear case of concealment by a consortium of Japanese firms, M/S Sumitomo Corporation, in the appointment of the Delhi based M/S Jyotsna holdings as consultant in an oil and natural gas commission (ONGC) contract for supply of pipeline, PTI reports.
Minister for petroleum and chemicals, M.S. Gurupadaswami, assured the lower house of parliament. that stern action would be taken against officials of the ONGC and the gas authority of India in case any “collusion” was discovered, Replying to questions by L.K. Advani and Jaswant Singh (both BJP), he said Rs 65 million was deposited in a London bank as remuneration for the services rendered by Jyotsna holdings, owned by the wife and the mother in law of Lalit Suri, a Delhi based businessman, who was drawn into controversy over the deal last year.
The minister informed an agitated house that the then first additional solicitor general of India had said action could be taken against the Japanese consortium by not giving further ONGC contracts to it.
The ONGC has been instructed to take action accordingly. It has also been advised to resort to arbitration or to file a suit for appropriate relief,” he said.
Apparently dissatisfied with the minister’s initial remarks, Advani and Jaswant Singh wondered why the government was trying to shield those involved in the dubious deal which was struck during the Congress (I) rule.
Jaswant Singh said action against Sumitomo, a qualified technical firm, amounted to cutting one’s own nose to spite the face. Instead action should have been taken against Jyotsna holdings.
The minister contented that the government approached the attorney general and the additional solicitor general as soon as the transaction came to light.
He said it had been established that Jytosna holdings had no technical competence or expertise to advice Sumitomo corporation in the highly technical supply of pipelines. It was engaged in liaison as an agent.
The minister pointed out that the Jyotsna holdings were engaged in supplying aircraft to the Delhi flying club.
‘The minister said Jyotsna’s equity capital as Rs 100,000 and its directors were Ms. Jytosna, wife of Lalit Suri, and her mother, Ms, Raj Kumari Nanda.
Article extracted from this publication >> December 29, 1989
