CHENNAI: The Ministry of Ports, Shipping and Waterways is soon expected to initiate certain policy reforms with regard to tendering at ports to tighten the process. This mainly to avoid tendering oversight and prevent similar conflicts in future infrastructure work, in the wake of the CBI case registered on former officials of Jawaharlal Nehru Port Trust (JNPT) and personnel from Tata Consulting Engineers today (June 21), said a government source familiar with the development.
The CBI registered a fresh case against these officials and two international dredging companies in the Capital Dredging Project—designed to deepen navigational channels near Mumbai to accommodate larger vessels. This project was under scrutiny for alleged irregularities totaling over ₹800 crore.
In the case, the CBI claimed that officials from JNPT and TCE colluded to create a cartel, manipulating tender outcomes to favour specific foreign bidders
This apparent favoritism and suppression of competition reportedly inflated project costs, with total public losses pegged at around ₹800 crore .
The Investigators allege that cost estimates were deliberately inflated.
Reports from independent bodies—including IIT Chennai, the National Institute of Oceanography, and other advisors—who had certified the dredging work were allegedly sidelined
During the project, the dumping site for dredged material was redirected, deviating from environmental clearance conditions—an action reportedly suggested by advisors who later participated in investigating the project, raising conflict-of-interest red flags.
The Boskalis–Jan De Nul JV, which executed the dredging, had moved to arbitration seeking unpaid dues of around ₹200 crore and additional claims worth about ₹130 crore due to scope changes and delays
The FIR named a TCE project manager and the then Chief Manager at JNPT, along with unspecified officials, accusing them of orchestrating the ₹800 crore loss through cartelisation and biased contract awards
This action follows a three-year preliminary inquiry, launched to sift through allegations ranging from inflated costing to biased tender processes and unjustifiable project extensions.
The CBI is probing deeper—examining financial trails, identifying other involved parties, and gathering technical evaluation reports.
If sufficient evidence is gathered, the CBI could proceed with charges under the Prevention of Corruption Act and relevant sections of the Indian Penal Code, both for public servants and private associates.
Arbitration initiated by the dredging JV remains active, particularly concerning unpaid dues and altered project scope. These parallel proceedings may influence the financial responsibilities and legal accountability of the accused.
The dredging was vital for JNPT’s expansion—over 150 larger vessels have since docked post-completion. Allegations of overpayments undermine the project’s financial legitimacy