CBI registers a case against M/s BJHSSL for supply of poor quality bed sheets to SC Railway

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The Central Bureau of Investigation (#CBI) has filed a case against Kanpur based firm – M/s Bunker Jatiya Hathkargha Sahkar Samiti Ltd. (#BJHSS) and unidentified officials of South Central Railway (#SCR) for alleged irregularities in the supply of more than three lakh‘substandard’ bed sheets for use of passengers in trains. The Firm has made a criminal conspiracy with SCR personnel to make wrongful gain in the supply of bed sheets. These transactions were conducted during July 2023 and November 2023.

A written report dtd. 31.12.2024 of S. Dhanunjay, Inspector of Police, CBI, ACB, Hyderabad Branch has been received by the Head of Branch, CBI, Hyderabad alleging that, during the period between July, 2023 and November, 2023, the representatives of M/s #BJHSSL having its Registered Office at E-11, Khapra Mohal, Kanpur, pin-209 004, have entered into a criminal conspiracy with unknown public servants of South Central Railway (#SCR), Secunderabad in the matter of supply of #bedsheets and obtain wrongful gain for themselves and corresponding wrongful loss to SC Railway, Secunderabad.

The said report of S. Dhanunjay, Inpector of Police was based on a Preliminary Enquiry conducted by him in PE 0352024A0003 on the above allegations. The following are the brief facts disclosed during the Preliminary Enquiry.

The O/o Chief Materials Manager (#CMM), SC Railway, Secunderabad floated a #GeM Bid No. GEM/2023/B/3409974, dt.05-05-2023 for procurement of 3,39,542 handloom cotton bed sheets at an estimated cost of Rs.12.80 crores with detailed specifications and terms & conditions. The #Tender Committee headed by the CMM evaluated 13 bids received in this regard and recommended for placement of Purchase Order (PO) as under.

  1. 60% of the required quantity i.e., 2,54,657 bed sheets from L-1 firm M/s BJHSSL for a total sum of ₹7,86,58,454/- vide PO No. 79231448204829, dtd. 28-07-2003, and
  2. 40% of the required quantity i.e., 1,69,770 bedsheets from L-2 firm M/s West Bengal State Handloom Weavers’ Coop. Society Ltd., Kolkata for a total sum of ₹5,24,38,557/- vide PO No. 79231448204831, dtd. 28-07-2023.

M/s BJHSSL supplied the 1st lot of 1,40,000 bedsheets on 05.10.2023 and 06.10.2023. Subsequently, upon receipt of complaints, the #Vigilance Department of SC Railway, Secunderabad conducted checks and sent samples to the Textile Committee, Hyderabad for the testing. The Test Report dt.09.11.2023 disclosed that the supplies made by M/s BJHSSL on the above two dates were not in accordance with the specifications.

Accordingly, the Vigilance Department vide letter dtd. 10.11.2023 forwarded the Test Report to the consignee i.e. General and Signal Stores Depot (G&S/Stores Depot), Mettuguda, Secunderabad and Principal Chief Materials Manager (PCMM), SC Railway, Secunderabad for further necessary action.

Subsequently, a joint inspection was conducted by Dy.CMM G&S/MFT in the presence of representatives of M/s Intertek India Pvt., Ltd. and M/s BJHSS Ltd, Kanpur on 18/19.01.2024 and the samples were sent to #RITES, New Delhi for testing. The tests conducted by the RITES, Delhi also revealed that the supplies made by M/s BJHSS Ltd, Kanpur were not in accordance with the specifications mentioned in the PO.

The 2nd lot of 1,14,657 bed sheets sent by M/s BJHSS Ltd, Kanpur were received by Dy.CMM/G&S, Mettuguda on 08.11.2023, 13.11.2023, 22.11.2023 and 27.11.2023 without ordering for re-test of the quality.

It is also revealed that O/o #PCMM did not order for re-testing of the material, even though the first lot had failed the quality test and was aware of this fact.

An amount of ₹3,54,15,254/- towards for supply of the 2nd lot of 1,14,657 bed sheets was adjusted out of ₹4,32,43,200/- already paid to M/s BJHSSLtd, Kanpur against the supply of 1st lot of 1,40,000 bed sheets on 05.10.2023 and 06.10.2023. Thus an amount ₹78,27,946/- has not been recovered till date which is wrongful loss to the SC Railway and corresponding wrongful gain to M/s BJHSS Ltd, Kanpur.

In pursuance of criminal conspiracy, unknown officials of PCMM, SC Railway at the behest of M/s BJHSS Ltd and M/s West Bengal State Handloom Weavers’ Coop. Society Ltd., Kolkata, certain relaxations were given on technical parameters by the O/o PCMM, South Central Railway that too after placing the Purchase Orders.

In pursuance of criminal conspiracy, with an intention to cheat South Central Railway, M/s BJHSSL vide their letter dated 14.09.2023 falsely reported that RITES, which is the inspecting agency for testing the quality of the bed sheets as per the PO dt.28-07-2023, did not inspect the material claiming that they are over burdened. Therefore, M/s BJHSSL requested SC
Railway to change the inspection agency for supply of material immediately.

Accordingly, the O/o PCMM issued letter 15.09.2023 for change of Inspection Agency from RITES to Intertek India Pvt Ltd., deliberately ignoring to verify the
genuineness of claim of M/s BJHSSL, from RITES. They also deliberately avoided to intimate the change of the Inspecting Agency to RITES.

Subsequently, taking advange M/s BJHSSL supplied substandard bedsheets as mentioned above in two lots and obtained wrongful gain.

Without following the prescribed procedure and opening multiple e-office files, the O/o PCMM, SC Railway issued Modification Advice (MA) changing the inspection agency from RITES to M/s Intertek India Pvt. Ltd., and this fact was not made known in the #IMMS (Integrated Material Management System) followed by the SC Railway.

Subsequently, Dy. CMM/HQ, SC Railway issued unauthorised directions to G&S Stores Depot, Mettuguda and the Mechanical Coaching Depots at Hyderabad and Secunderabad for diverting and accepting the material in the name of emergency and without any indent or requirement from them.

The above facts discloses commission of supply and acceptance of substandard bedsheets by M/s BJHSSL, Kanpur and unknown officials of SC Railway in a clandestine manner causing wrongful loss of ₹78,27,946/- has not been recovered till date which is wrongful loss to the South Central Railway and corresponding wrongful gain to M/s BJHSS Ltd, Kanpur.

Hence, a Regular Case u/s 120-B r/w 420, 420 of IPC and Sec. 13(2) r/w 13(1)(a) of the P.C. Act, 1988 (as amended in the year 2018) is registered against M/s BJHSSL, Kanpur and unknown public servants of SC Railway, Secunderabad and any other private persons/firms, for taking up investigation.

Since the above information reveals commission of offence(s) under above sections. CBI has Registered the case and took up the investigation.

The CBI is investigating whether public servants received undue benefits for facilitating the acceptance of substandard supplies.