Vasundhara may get dragged into Lalit-Nitin licence plate case
The nexus between controversial businessman Nitin Shah, allegedly involved in several illegal activities, and former IPL commissioner Lalit Modi had come to light in the award of contracts for the High Security Registration Plates (HSRP) during the first tenure of Vasundhara Raje as the Chief Minister of Rajasthan. The Rs 800 crore scam pertained to awarding the contract to M/s Shimnit Utsch for Rs 1,100 for four wheelers and Rs 650 for two wheelers, allegedly due to the influence Modi wielded over the Raje government; while, after it was revoked by the Ashok Gehlot government, the charges came down to Rs 220 (for four wheelers) and Rs 77 (two wheelers). Shah was convicted by the Sessions Court in Delhi for the murder of his employee Lalit Suneja some years ago, along with Babloo Srivastava, an alleged associate of underworld don Dawood Ibrahim. The sessions court verdict was overturned by the high court in a debateable judgement by Justice R.S. Sodhi on a technical ground and the matter is now pending in the Supreme Court for final disposal.
According to disclosures by the state government functionaries, the bureaucrats and officials of the transport department who did not cooperate with Lalit Modi and his associate Shah, were transferred out and harassed. The law enforcing agencies are investigating the purpose of the scam, which was to share the spoils with Shah and Modi and could even singe the Chief Minister.
The requirement for HSRP had become essential for all the states after the amendment to Rule 50 of the Central Motor Vehicle Rules, 1989, in order to ensure uniform display of registration number plates. The high security number plates, with reflective aluminium sheets, allow display all over the country and are expected to act as a formidable tool against vehicle theft and use of vehicles for committing thefts. They are tamper proof and come with a five-year guarantee.
After the review of the arrangement in Rajasthan, governments in Karnataka and Goa — where the said company had been duping unsuspecting vehicle owners — also terminated the contracts as they found large scale violation of rules and due to the fact that money being charged for the plates was several times its actual cost.
However, in a significant development with far reaching ramifications, the Ministry of Road Transport and Highways, realising that something was amiss, has written to six northeastern states for initiation of CBI investigations into the cartelisation of the three companies — Shamnit Utsch, Ms Real Mazon, Ms Tonnjes Eastern Security Teachnologies Ltd — with linkages to Nitin Shah in respect of HSRP. The ministry has even filed an affidavit in the Apex Court on 28 October 2014. Ministry secretary Vijay Chibber has individually addressed letters to the chief secretaries of the six states and the CBI, following a complaint by the Association of Registration Plates Manufacturers of India. Chibber has stated that “since the matter is of urgent public importance, I request you to kindly look into the matter personally, and expedite the notification as requested by the CBI”. He has further said that the CBI has requested the state governments to issue necessary notification under Section 6 of the DSPE Act, 1946 (Act 25 of 1946) for taking the investigation of cases by the agency.
Nitin Shah, when contacted, said that all the charges and allegations against him were totally wrong and baseless. “I have done nothing illegal. The matter is pending in the Supreme Court. There is no proof of any kind against me.” Asked why the Ministry of Roadways and Transport as well as the CBI would write to states for seeking permission to proceed against him, he said that he had documents to show that he had not infringed on any rules or committed any irregularities.
Sources said that under normal circumstances, the CBI would have started the probe, but due to perhaps instructions from seniors during the tenure of Ranjit Sinha as the CBI boss, the organisation sought permission from states to begin investigations. Persistent efforts to get a response from the CBI for over a week proved futile. The official spokesman said on Saturday that he would revert once the concerned official responds.
The state of Meghalaya has already granted the permission, but for reasons best known to the CBI, no Regular Case (RC) is yet to be registered. It is alleged that Nitin Shah has used his influence to delay the investigations. The Meghalaya government permission has been granted, which was evident in the affidavit filed in the high court on 11 June 2015 in a public interest litigation writ petition filed by an activist, Wanbok S. Lyngdoh in May this year. In the said PIL, the petitioner has levelled serious allegations against another director and promoter of Shimnit Utsch India Private Limited, who is “engaged in several illegal activities”. In this regard, an international media report has been enclosed by the petitioner, where one of the directors — Helmut Jungbluth — was convicted in 2011 by an Egyptian court for corrupting government officials. Interestingly, Jungbluth was a director in Shimnit Utsch Limited at the time the HSRP contract was awarded to the company.
Earlier the CBI had informed the Centre and various state governments in the Northeast that they had verified the matter and had found that there was sufficient material for registration of a criminal case against Nitin Shah and his cartel companies and they could be proceeded under Sections 120 B read with Section 420 IPC, and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Action, 1988. These sections were in respect of contracts of HSRP implementation in the states to companies floated by Nitin Shah “who is a convict in a murder case and therefore, ineligible to get contract in the said scheme, awarded by states of Manipur, Mizoram, Sikkim, Arunachal Pradesh, Meghalya and Nagaland.”
Sources said that the Intelligence Bureau, in response to a query from the Prime Minister’s Office, had also confirmed that Nitin Shah was the owner of Shimnit Utsch India Pvt Limited and was instrumental in floating two front companies — Ms Real Industries Ltd (now known as Real Mazon Private Limited) and Ms Tonjeies Eastern Security Technologies Pvt Limited. The IB report also names Shah as an accused in the Lalit Suneja case tried at the Karkardooma courts along with Babloo Srivastava and others.
The IB report further talks about various aspects of Nitin Shah and his companies. Therefore, when the CBI initiates its investigation, it shall look into the cartelisation of companies owned by Shah and whether such companies were being run illegally through foreign funding as hawala trading or whether influence was exerted on government functionaries by the way of illegal gratification and other means for obtaining contracts. The CBI, in view of the very grave allegations in the IB report, would also verify criminal antecedents, if any, of Shah and his involvement with Babloo Srivastava and his associates. In addition, Shah’s previous background where he is suspected to have been detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) by the Enforcement Directorate would be gone into.
The High Court of Allahabad and Lucknow in MB 7447/2011, relying upon circulars and IB reports against Nitin Shah, had his cartel companies annulled and the entire HSRP tender process in the state of Uttar Pradesh, and further exemplary cost/fine/CBI inquiry was imposed on erring officers of state and bidder concerned M/s Shimnit Utsch India Private Limited with which M/s Test Securities is also associated. The court opined that “from the IB report vide letter no.U.O.No. 430/31/c/6/2005 ES, I dated 19.03.2005, it may further be …circular dated 18.05.2005, sent by ministry of Home Affairs (Internal Security) prima facie reveals that opposite party No.3 was established by one Nitin Shah, who has been convicted in a criminal case hence, floated another company, i.e. respondent no 3 Shimnit Utsch India private limited by Rushang P.Shah… it seems to be violative of Order, 2001 (supra) and the Circular dated 18.05.2005 of ministry of Home Affairs”. However, the high court matter was referred to the Supreme Court where it is pending for final disposal.
It is pertinent to mention that the IB report submitted against Nitin Shah and his cartel companies has not been challenged in any judicial proceedings and has attained finality and holds good.
The CBI has already informed the Centre and various state governments that they have verified the matter and have found that there was sufficient material for registration of a criminal case against Nitin Shah and his cartel companies.
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