SC asks Telangana govt, BHEL for original files in irrigation project case
This story was originally published at 17:40 IST on 26 December 2024
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NEW DELHI – The Supreme Court has asked the Telangana government to give the original file relating to the preparation of estimates for Palamuru Ranga Reddy Lift Irrigation Project and Bharat Heavy Electricals Ltd. to provide the original file relating to its joint venture agreement with Megha Engineering Infra Ltd.
"BHEL will file an affidavit about the details of the equipment made by it and supplied, and the payments received for the projects in question. The affidavit shall be filed within four weeks from today," the bench of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar said. The court will hear the case next on Feb. 10.
The apex court was hearing a public interest litigation by Nagam Janardhan Reddy, a former member of the legislative assembly of Andhra Pradesh. Reddy questioned the pricing of 145 MW motors and pumps, which were procured by the Telangana government for the purpose of Palamuru Ranga Reddy Lift Irrigation Project.
The petition alleged that the procurement process led to exorbitant pricing and resulted in enriching the agency Megha Engineering, through which motors and pumps were procured. Reddy alleged that while the cost of each pump and motor was estimated by the Engineering Staff College of India at INR 1.18 billion, the Telangana government paid INR 1.79 billion, resulting in avoidable loss to the public exchequer.
The price paid to BHEL for the procurement of the 145 MW motors was a meagre amount and Megha Engineering has made enormous profits, the petitioner said. The Telangana government had initially pegged the cost of electro-mechanical equipment at INR 59.60 billion as estimated by the Engineering Staff College, said the petitioner. However, this was increased to INR 83.86 billion without following the standard procurement procedures, the petitioner alleged.
The Telangana High Court had in 2018 rejected Reddy's petition. The petitioner moved the apex court challenging the high court's order.
Earlier this year, Megha Engineering had emerged as the second-biggest buyer of electoral bonds at INR 5.86 billion rupees since 2018. The company had donated INR 1.95 billion to Bharat Rashtra Samithi, which rulled Telangana from 2014 to 2023.
On Thursday, shares of BHEL ended 1.0% higher at INR 241.75 on the National Stock Exchange. End.
Reported by Surya Tripathi
Edited by Saji George Titus
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