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Bengaluru, Feb 8 (PTI) The BJP in Karnataka today alleged that a Rs 7,000 crore scam has taken place in importing sand from Malaysia and selling it at an exorbitant price in the state.
Raising the issue in the Karnataka Legislative Assembly, opposition BJP leader Jagadish Shettar said Mysore Sales International Limited (MSIL) had awarded the contract to a bogus company, Poseidon FZE, through a tender to import 180 lakh tons of sand for five years.
“The company has given EMD documents at Axios Credit Bank in Singapore, but this bank has no branch in Singapore,” Shettar said, releasing documents about the alleged scam.
Shettar alleged that the import price of the sand flown from Malaysia is Rs 107 per 50 kg bag, but it was being sold at an exorbitant price of Rs 200 per 50 kg bag.
“I can understand if there is a hike in selling price to say Rs 10 to Rs 15, but an increase of Rs 93 cannot be accepted.This is a scam of huge dimensions,” he said.
Shettar said it is an international crime and MSIL officials are involved and should be thoroughly investigated.
“I am ready to submit the documents before the government and request the government to initiate investigation into it,” he added.
Shettar said MSIL had given the tender to the company which had no experience in these types of transactions and business.
“The tender was given to Poseidon FZE without Cabinet approval,” he alleged.
Poseidon FZE was prima facie a bogus company as it gave phone numbers and address, which are not in existence, Shettar claimed.
He also said the company was not registered before the tender process began and instead it was registered afterwards in UAE.
“MSIL had floated the tenders in last May,” he said.
Shettar alleged that MSIL officials illegally tweaked tender conditions to help Poseidon FZE to supply sand from Malaysia.
Not only the tender conditions were changed, but also import-export norms violated while fixing the quality control agency, Shettar said.
“I request government to bring to book culprits including MSIL officials, who could have misled the ministry,” he said.
Replying to Shettar’s allegations, Industries Minister R V Deshpande requested him to submit the documents and assured the House that a probe would be initiated.
“The officials and others will be punished if found guilty. The government does not have any intention to protect the culprits,” he added.
This is published unedited from the PTI feed.
