Smelling a rat in the selection of a system integrator for the supply, installation and management of outdoor surveillance systems worth R59 crore for the police on a turnkey basis, the Haryana government has decided to order an inquiry by the vigilance bureau (VB).
The issue pertains to the selection of outdoor surveillance systems for Gurgaon and Faridabad police commissionerates.
Chief minister Bhupinder Singh Hooda has given his approval for a vigilance probe. The project has been put on hold and an official of the Haryana State Electronics Development Corporation (HARTRON) placed under suspension.
Purportedly, a Germany-based company, LevelOne Communications, perceived to be having an Indian subsidiary, LevelOne Communications India Pvt Ltd, was selected as the system integrator on the basis of being the lowest bidder by HARTRON.
Inconsistencies galore
Investigations revealed that no company by the name of LevelOne Communication, Germany exists. Levelone is a brand of Digitial Data Communication GmbH, a company based in Germany.
Babu Joseph, who signed the agreement on behalf of LevelOne with HARTRON, says he owns an Indian company by that name and “was authorised by the German entity to sign the agreement on its behalf as he was a director of the German company.” Joseph said they were in no way connected to Digital Data Communication (DDC).
However, balance sheet papers submitted by LevelOne say that LevelOne Communication Group is a 100% subsidiary of Digital Data Communication GmbH, while a certificate issued by the company's chartered accountant states the company is a 100% subsidiary of LevelOne Communication Group, Germany. It is also learnt that the information submitted by Joseph's company to the ministry of corporate affairs states, “LevelOne Communications (India) Pvt Ltd is neither a subsidiary company of any holding company nor has a subsidiary company.”
{{/usCountry}}However, balance sheet papers submitted by LevelOne say that LevelOne Communication Group is a 100% subsidiary of Digital Data Communication GmbH, while a certificate issued by the company's chartered accountant states the company is a 100% subsidiary of LevelOne Communication Group, Germany. It is also learnt that the information submitted by Joseph's company to the ministry of corporate affairs states, “LevelOne Communications (India) Pvt Ltd is neither a subsidiary company of any holding company nor has a subsidiary company.”
{{/usCountry}}No money given to bidder: HARTRON MD
HARTRON managing director Ankur Gupta said, “We haven’t given money to the selected bidder. Their bank guarantee of R5.90 crore is with us.”