BUSINESS

RIL-Sibal 'nexus': Oil min providing files to CBI

Source:PTI
February 18, 2010 17:19 IST

The oil ministry is providing Central Bureau of Investigation with all files relating to decisions made by former oil regulator V K Sibal to aid the agency's probe into allegations of his collusion with private operators.

"There are some 35 decisions (made by Sibal as DGH) that are being probed by CBI. Like in any other corruption case, they (CBI) wrote to us seeking files and we are providing all that they have sought," a ministry official said.

Allegations against Sibal include approving Reliance Industries' four-fold increase in capital expenditure to $8.8 billion for the nation's largest gas field KG-D6 in return of personal benefits.

All files detailing the basis on which the approval was done are being given to the CBI, he said.

Both Sibal and Reliance have denied any wrong-doing saying higher capex was not a result of artificial inflation (gold platting) but due to spurt in input costs like drilling. Asked if a CBI team had visited the ministry, the official vehemently denied the rumour saying information was sought in routine manner and was being provided.

Other charges against Sibal include 'nexus with private parties' and his 'obtaining pecuniary advantage in award of contracts and supply of information of sensitive data of resources'.

Also, the process followed in levying liquidated damages on companies for not fulfilling exploration commitments was found arbitrary and so was the award of contracts for speculative surveys.

The CBI has registered three preliminary enquiries against Sibal alleging 'gross abuse and misuse of public office' as the director general of Directorate General of Hydrocarbons for five years to October 31, 2009.

The official said CBI had written to the ministry seeking files pertaining to the decisions which are being provided. Sibal was denied an extension of service as DGH till his superannuation in January 2012 following the allegations.

Although he denied any wrong-doing, he was forced to revert to his parent firm Oil India on October 31 2009 as group general manager -- a rank which he held prior to becoming the DG, DGH.

He immediately applied for early retirement but OIL rejected his application as vigilance probe against him was pending.

Sibal then went on three months leave but joined the company this month.

Charges of conflict of interest were levelled against him as the DGH office in Noida on the outskirts of the national capital was rented from a company that was a contractor for DGH.

Also he lived in a rented house owned by a firm that subsequently was awarded oil blocks.

Image: V K Sibal

Source: PTI
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