Inquiry into SPGL 'irregularities' sought

By Our Special Correspondent

HYDERABAD, OCT. 13. The State Committee of the CPI(M) has demanded a thorough enquiry into the `irregularities' in the Spectrum Power Generation Limited (SPGL).

In a letter written to the Chief Minister, Mr. N. Chandrababu Naidu, a copy of which was released to the press, Mr. B. V. Raghavulu, secretary of the State Committee, alleged that the Chairman and Managing Director of SPGL had siphoned off at least Rs. 30 crores from the company by way of fake contracts given to companies floated in the names of his relatives.

This money was subsequently recycled and brought as equity into the company, by the so-called affiliates of Jaya Foods.

He alleged that the CMD had virtually entered into a `kickback arrangement' with Rolls Royce and received kickbacks.

He said in the name of privatisation and globalisation of the power sector, public money had been looted from Indian financial institutions.

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Section  : Southern States
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