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The Hindu
The Hindu
National
PTI

CWG scam | CBI to seek extradition of Chinese national accused in Shivaji Stadium upgradation work

The CBI will soon move for the extradition of Chinese national Jiashu Zhao wanted in connection with one of the 2010 Commonwealth Games scam cases related to the upgradation of Delhi's Shivaji Stadium, officials said.

The CBI has so far failed in its efforts to get a Interpol Red Notice issued against Jiashu, an alleged representative of China Railway Shisiju Group Corporation in India, they said.

The premier agency could not execute non-bailable warrants against him because of the absence of Mutual Legal Assistance Treaty (MLAT) between India and China, they said.

The officials refused to give further details on the unsuccessful attempts to secure Red Notice from the Interpol against him during the last three years.

Jiashu has been named as an accused alongside senior NDMC officials in a chargesheet filed by the CBI in connection with the case, they said.

The competent authority had declined to grant sanction to prosecute then NDMC Chairman Parimal Rai in the case.

The court had already taken cognisance of charges against other accused officials and private persons in the case, they said.

Jiashu’s trial was separated from other accused after CBI could not execute summons and NBW against him, they said.

The agency has now decided to move with an application for the extradition of the accused Chinese national, they said.

The case pertains to alleged corruption in the upgradation of Shivaji Stadium for the 2010 Commonwealth Games.

What is 2010 CWG scam?

The NDMC had invited tenders worth ₹80.85 crore on February 16, 2008 for the upgradation of Shivaji Stadium including its Sports Facility Block, Hockey Stadium warm-up pitch, two-level basement for parking with the premises and other works such as electrical, fire fighting and protection as a composite exercise.

The civic body had awarded the work to China Railway Shisiju Group Corporation represented by Jiashu at ₹160.27 crore on June 9, 2008 for which was 98.23% above estimated cost of ₹80.85 crore, the officials said.

The tender allowed rates quoted by lowest bidder in case they were within 10% above the justification of rates.

The NDMC officials allegedly prepared quotations on an inflated rate of certain items so that the "justified rates" could reach closer to the quoted rate of the Chinese Company declared as L-1, the agency has alleged.

The CBI has alleged that accused NDMC officials R.S. Thakur and V.K. Gulati knew that the China Railway was ineligible yet they "deliberately committed number of omissions and commissions to favour" it.

This tender was not a global tender so the condition of tender notice did not suit a foreign contractor. As per the contract condition, Joint Venture (JV) or sub letting was not allowed.

A company, Simplex Project Ltd.(SPL), was interested in the project but lacked enough experience to meet the eligibility criteria, the agency has alleged.

The company decided to enter in a 'work agreement' with China Railways for the project with a condition that in case the Chinese company is a successful bidder and awarded the work by NDMC, execution of the project will be entrusted to SPL which will execute, complete and remedy the work in accordance with the provisions of the contract.

The tender documents were sold to 11 companies but only six submitted bids for the project including China Railway.

In spite of red flags raised by the Finance Department about the eligibility of the Chinese company, the officials allegedly circumvented the explanation and did not explain as to how the said company was eligible as per the tender conditions.

It is alleged that China Railways, after winning the bid, sublet the entire work to Simplex Projects Limited which executed the project, in spite of lacking enough experience, in violation of the tender conditions which was within the knowledge of accused officials.

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