Say Hello to Another
Scam
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Unnatural Alliance
The CNG controversy has taken a new turn, with doubts being raised about the propriety of the Delhi Government's selection of Nugas as the sole supplier of the conversion kit.

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ENVIRONMENT: CNG

Hashmi's Intentions 'Mala Fide'

Equally suspicious is how Nugas managed to convince the Delhi Government to order CNG kits at that price. When the government floated a tender in July 1999, it received offers as low as Rs 1,65,000-2,48,000 per kit. Among those who participated was RFAT. But the tender was called off by Hashmi on the grounds that none of the participants had met all the tender requirements. "We were awarded the first tender in March on the strength of our technology. So how could we be written off in July? Obviously, Hashmi's intentions were malafide," rails Singh. It is also from the prices quoted for first generation kits in this tender that Khurana estimates the dimensions of the scam. As a former transport minister in Delhi he alleges that the Nugas kits, at close to Rs 5 lakh for private operators, are double the rate of what they should have been. This raises the stakes of the scam to around Rs 200 crore-an amount Khurana claims will get siphoned away into private kitties.

Nugas suddenly appears to have hit a rough patch and now even its technology is being questioned. On April 10, hundreds of private operators were shocked when the Ministry of Surface Transport informed them that the certificate issued to Nugas' CNG kit by the IIP "is based on the emission norms of 1992 and, therefore, usable in buses manufactured up to March 1996" but "the certificate is invalid for vehicles manufactured after March 1996".

So if Nugas knew it could not convert buses manufactured after 1996, why did it take registration amounts for the kits from private operators? In the fir lodged by Himmat Singh, general secretary of the DTC Private Operators Welfare Association, it is mentioned that "this fact was never brought to my notice by Ramesh Handa and his agents ... Handa, knowing fully well that he was not in a position to convert my bus (year 2000 model), deliberately induced me to part with the Rs 10,000 booking amount".

What made matters worse for Nugas was a letter issued by the IIP to the Ministry of Surface Transport. Also dated April 10, it confirmed that the certificate issued by it was invalid for "all the vehicles manufactured after March 1996" as far as conversion was concerned. RFAT now says that it was offering third generation technology and yet the Delhi government opted for Nugas with its first generation technology for converting diesel buses into CNG ones.

All this has come as a huge blow to Nugas which is now threatening to sue the IIP. Nugas' spokesperson Yash Pal Arora says that there was a collective effort by some people in defaming the reputation of the firm as well as spreading rumours about the validity of its certificate. Nugas also claims to be in the possession of a certificate it received from an Ahmadnagar-based organisation on January 1, 2001, that permits it to sell its CNG kits to all transporters without validity problems.

These conflicting claims indicate that the CBI may be forced to initiate a probe. Until the many discomforting questions that have arisen are answered, the CNG controversy promises to spiral into a political and business storm.

MetroScape

Wealth Of Art
April 8 saw an unabashed get together of Mumbai's Who's Who when the annual Harmony Show, well known as "Tina Ambani's baby", celebrated its sixth showing at the Nehru Centre.
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Looking Glass

Bangalore Hotel:
Park.hotel

Mumbai Store:
Regent Watch and Jewellery Boutique

A war of words is on at the Jammu border where India is trying to build a fence to stop infiltration, much to Pakistan's dislike, reports
INDIA TODAY's Special Correspondent Ramesh Vinayak in Despatches.