GAIL India slaps show-cause on Rolls-Royce

Tags: News
State-owned gas utility GAIL India has slapped a show-cause notice on Rolls-Royce for allegedly not disclosing a commission of Rs 30 crore paid to agents in contracts worth Rs 1,639 crore.

Rolls-Royce has over the years supplied 63 out of the 72 gas turbines installed on nationwide pipeline network of GAIL. The British company also provides spares and services to the turbines.

Unlike the defence deals, PSU tendering allows for commission to be paid to agents but that has to be declared upfront during the bidding process.

Sources with direct knowledge of the development said Rolls-Royce allegedly paid a commission of 10-11.3 per cent in 24 spares and services deals to agent Aashmore, Singapore, without declaring the same at the time of bid submission.

In another contract for new engines, a fee of 2 per cent was paid to another firm Infinity in addition to the pre- declared commission of 2 per cent paid to its authorised spares and service agency Turbotech Energy Services in New Delhi.

When contacted, GAIL Chairman and Managing Director B C Tripathi confirmed sending show-cause notice to Rolls-Royce.

"GAIL has issued a show-cause notice to Rolls-Royce for not disclosing in the bids commission to be paid. Based on their response, further course of action will be taken," he said.

An email sent to Rolls-Royce for comments remained unanswered.

The show-cause by GAIL comes close on the heels of the Defence Ministry putting on hold all deals with Rolls-Royce until investigation into allegations of bribes being paid for supply of aircraft engines, is completed.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • E-auction and eventual privatisation of coal industry are welcome steps

    The government’s decision to privatise the scam-ridden coal industry through a presidential ordinance will eventually end the monopoly of public sec

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Rajgopal Nidamboor

Synchronous balance is vital for one and all

Imagine that you are playing an electronic game, or actually ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture