New Delhi, July 09: The Comptroller and Auditor General of India has pulled up BHEL for awarding contracts worth Rs 26.61 crore to a company banned by the power equipment manufacturer itself from doing businesses with it.
“The company contravened its laid down guidelines and ethical practices by placing contracts worth Rs 26.61 crore on a banned firm…,” CAG said in its report for March 2008.
The Heavy Power Equipment Plant, a unit of Bharat Heavy Electrical Ltd, banned in March 2006 all business dealings with a firm which was found to have indulged in forming a cartel to bag an order quoting higher prices.
“Notwithstanding such a ban, the Project Engineering Management, another unit (of BHEL), awarded (June\October 2006) two works to the banned firm at a total price of Rs 26.
–PTI