Petronet LNG

Petronet LNG Infra LIVE March 15, 2020 32 www.infralive.com named Custom Made Pvt Ltd was incorporated in Mumbai with the following shareholding: Virat Singh Kumpavat (65 pc), and Roli Purnima Singh (35 pc). Both were the promotor Directors of the company. Ms Roli is the elder daughter of Mr Prabhat Singh. However, she resigned on August 30, 2017 (see scan-A at pg 33) and later sold her shares to Lavisha V Kumpavat, wife of Virat Singh Kumpavat. Later, on March 7, 2018, the name of the company was changed to Custom Made Films Pvt Ltd. D uring 2016 to 2018, Prabhat Singh, managing director & CEO of Petronet LNG Ltd (PLL) awarded three contracts on nomination basis through his family nexus. The details of these contracts are given below. 1. Preparation of documen- tary film of PLL's Dahej plant On July 12, 2016, PLL received a proposal from a firm called “Custom Made Film” for making a documentary film on PLL's Dahej plant at a total cost of Rs 15,81,250 inclusive of 15 per cent service tax. The firm asked for 50 per cent advance once shoot was done, and balance after comple- tion of the film. PLL processed the proposal the same day (PR No. 2000141 dated 12.07.2016). It did not carry out any negotiation with the party and issued order the next day (Service Order No. 4700001529 dated 13.07.2016). On August 1, 2016, PLL made an advance payment of Rs 721,875. The project was not completed in time. The deadline was extended till June 30, 2017 that too without application of liquidated damages (LD). On September 12, 2017, PLL released the balance payment of Rs 721,873. From the delay in completion, it is clear that there was no urgency for preparation of documentary. Therefore, the management should have followed a tender process instead of awarding the contract on nomination basis. On investigation, it was found that while the above happened, on March 24, 2017, a company Petronet LNG MD & CEO awarded 3 contracts on nomination basis through family nexus