A Look Inside Fakeer's Jhola :Part 3
Financing scams in Infrastructure : Oil & Gas, Highway, Power, Defence contracts and Electoral Bonds
Before going into the detailed chronology of the Electoral Bond purchases and political parties redemption of those bonds, I would like to thank some organisations whose online publications helped me a lot in researching for these articles:
Firstly Megha Engineering & infrastructure Limited (the whole group), they have made websites for all subsidiaries (except of course the shell companies like MEIL Global Holdings BV in Amsterdam) and even kept Petreven.com alive. Most of their corporate profile bragging led to one thread to another.
Corporate Directory websites Zuabacorp, Corporatedir and others helped a lot. Opencorporate helped searching for shell companies and companies overseas.
Similarly, online news Newsminute, Reporter's Collective, NewsLaundry,scroll etc and Hindu & Indian Express news was of big help.
But Godi Media (Pro BJP TV and online Media) was a serious hindrance, Times group and India Today group and that darn MoneyControl has become a fanboy of those companies who gave crores of rupees to BJP. Megha or MEIL is no exception in this case. MoneyControl wrote a scam of an article bragging about 1.87 lakh crore or Trillion rupees order book of MEIL group but failed to mention the borrowing charges of theirs. Let me refresh your memory of the borrowing patterns of flagship company MEIL itself. I shared this graph in part 1 also.
This chart is made from declared and registered borrowings from structured and lenders and doesn't not reflect loans from informal lenders or bank overdrafts or other bank securities which infrastructure players always have to give to guarantee timely completions and quality standards of their work. Under Law a borrowing becomes a charge when some assets are kept as guarantee for that loan, these charges are registered publicly so that other lenders know that which assets are pledged already.
Coming back to Order books in infrastructure sector, the order book is realised over a period of 5 to 10 years. But 22.5 billion US dollar worth is not a matter of joke. Although the industry leader in India, L&T had an order book of 8.5 trillion as reported by Godi Media couple of years back and they didn't have to splurge in Electoral Bond unlike Megha or Kalpataru group did (Well, L&T has proven track record unlike others in this field).
CHRONOLOGY, CHRONOLOGY, THAT DARNED CHRONOLOGY:
SBI and ECI has shared data from 12/April/2019, and on that day, Registered charges against Flagship Megha Engineering and infrastructure Limited were at Rupees 247,329,100,000.00
That would be 24732.91 crores.
On 12/April/2019, Fearless "Megha Engineering and Infrastructure Limited" bought 50 bonds of One Crore each. SBI's record show that they never register two Bonds of highest denomination of consecutive numbers.. but every branch was allocated a block of serial numbers.. they ended up giving up a full series of OC-5476 to OC-5512 and other bond numbers around it.
Ha ha ha ...poor SBI, their branch was running short of Bond numbers to sell!
On 16/April/2019, BJP encashed all 50 one crore denomination bonds ...
On 16th April, Megha Engineering purchased 15 more Electoral Bonds and Bond hungry BJP encashed them on 22nd April.
On 7th May, 2019, Megha Engineering purchased 25 bonds of Value of 1 crore each.
And surprisingly perhaps BJP personnel was sharing an auto-rickshaw with Congress supporters and misplaced 5 bond certificates there.. just joking because Congress party encashed 5 electoral bonds out of those 25 crore on 9th May, 2019.
BJP encashed 20 crore of those 7th May purchases on 10th May,2019.
On 9th May, 2019, Megha Engineering had bought 35 more one crore denomination Bonds. BJP encashed them on 10th May as well.. you can find 10th may Encashment details on pages 93-94 of Bond redemption PDF shared by ECI
And with that concluded that 2019 Indian Parliamentary Election Electoral Bond purchases and redemption cycle. In this cycle where SBI has given data only since 12/April/2019, MEIL purchased 125 crores of Electoral Bonds and who encashed them:
Incumbent BJP : 120 crore (1.2 billion if you like it, in that format)
Congress: 5 crore.
This means, MEGHA infrastructure group gave more than 1000 crores in Electoral Bonds when there were only local elections in states but major tendering process of BJP ruled central Government coincided with them. And as we just found out, they have donated heavily for BJP when they were trying to get back in power and in part one of this article, I have already mentioned quoting from their website that PM Modi had inaugurated their infrastructure projects in his first term.
Right now, they may seem to be a super cash rich infrastructure company, but truth lies elsewhere..
On 27/05/2019, a borrowing of 3,45,96,925 from Vedanta Limited was registered by Megha Engineering & infrastructure Ltd with "movable property ( not being pledged)" as description of the charge. That's quite peculiar, a company that can pay 125 crore to political parties in past 45 days .. can't pay 3.5 crores to Vedanta??
A look into previous years borrowings showed a mammoth sized charge of 14286,05,00,000 (14286.05 crore) given by SBICAP TRUSTEE COMPANY LIMITED.
It seems that was the source of MEIL's debt restructuring in 2018 and Electoral Bond splurge in 2019. As Megha Engineering reported two more borrowings shortly on 9th July, 2019.
1000,00,00,000 !!! Thousand Crore borrowing from Yes Bank. Strangely nothing was put out in the description, to tell other lenders which assets were kept as securities.
590,00,00,000 !! Wow! 590 crore borrowing from VISTRA ITCL (INDIA) LIMITED by "Pledge of Shares".
Funny "MoneyControl" puppets will never tell you that.
Then comes the next state election cycle on October 2019 and as if like a statutory payment, MEIL purchased 5 bonds of 1 crore each on 3rd October and gave it to BJP. Angered by this paltry amount as subscription, BJP run central Government sent Income Tax officials on a raid to Megha Engineering's premises, there are plenty of news reports from even Godi Media would vouch about the raid and even some outlets said an enforcement Directorate investigation started as well.
What BJP-supporting Godi Media won't tell you is that BJP encashed all 5 bonds on 11th October,2019. Bond numbers are:
OC-6774, OC-6772, OC-6771, OC-6767, OC-6769
I'm not saying Income Tax officers took those bonds and gave it to BJP.. but who knows.. ha ha ha..
Then came Pandemic of 2020 and next Electoral Bond cycle didn't start till late 2020.
But 125 crore of Election Bond to BJP proved a great investment for Megha Engineering & infrastructure Limited as they bagged the "Zojila Pass tunnel" contract on 14th August, 2020. Source:https://www.constructionworld.in/transport-infrastructure/highways-and-roads-infrastructure/meil-to-construct-zojila-pass-tunnel/24246
Incidentally, the news report also says, while the tender for this project was given only in August, 2020 .. PM Modi laid the foundation stone way back in 2018.
Classic Modigiri, make a PR Event when even tender is awarded to a soon to be bankrupt IL&FS and lay a foundation stone. Modi has 100 puppet TV channels who will call it a Masterstroke. You want proof, just goggle "Modi lays Foundation stone for zojila pass tunnel".
As of now, no traffic has gone through Zojila tunnel but Godi Media keeps calling this tunnel a jewel of MEIL's infrastructure portfolio.
MEIL had to donate in PMCARES fund,but that data is secret for now. So they were free to support opposition party, DMK instead of BJP.
They meanwhile has managed to acquire Drillmec SpA and defunct Petreven SpA from bankrupt Trevi-Finanziaria Industriale SpA, so they must be in good books of BJP.... because ED had no issues with how they acquired millions of Euros for their shell company in Amsterdam. That story I described in part I of Megha Untold stories.
On 23rd October and 27th October, they bought Electoral Bonds worth 10 crores each and gave it to DMK. They have business interests in Chennai and Tuticorin and encashed in DMK wave prevalent in Tamil Nadu.
They purchased another cache of 40 One Crore denomination Bonds, 3 days before the election and gave all of them to DMK. Although poor DMK could not encash them before 6th April, the Election day.
See the magic, at heart BJP supporter MEIL gave money to Opposition DMK, but gave it at a time when they could not use them for election campaign.
On polling day, when campaigning had stopped; only two things never stopped then...
Modi speech live on Godi Media
and
SBI selling Electoral Bonds.
And on 6th of April, the Tamil Nadu Election day, Megha Engineering buys 38 Electoral Bonds worth one crore each, 33 crore of which went to BJP and again they managed to give 5 crore to Congress party.. This 33 crore might be a gratitude payment for MEIL's Tamil Nadu based subsidiary SEPC POWER PRIVATE LIMITED's charges of 2449,16,00,000 held by Government controlled "Power Finance Corporation Limited" getting modified to grant them more time to repay. Modification happened on January, 2021.
DMK won that election convincingly, as a betting man, MEIL must be very successful. And loyalty proving payments to BJP kept, Modi Government happy.
Next came, Megha Engineering's 2021 October Bonanza, when there was no major Election in the state of Telangana, they bought 100 crore of Election Bonds to then ruling Telangana Rashtra Samity, now known as Bharat Rashtra Samity.
2019 or 2021: Beginning of ONGC Rig Replacement Scam ?!
We find in Construction magazine websites that MEIL has tied up with ONGC for 47 onshore Rig replacement for a whooping $860 bill.
Same news or rumour was doing rounds in 2019 as well.
What experience did they have to get such an order on 2021? Let's recap :
- They have acquired defunct Drillmec and Petreven from bankrupt Trevi-Finanziaria Industriale
- They have a tie up with Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec, for drill motor replacement for this ONGC deal, way back in 2019. (Source: https://www.constructionworld.in/energy-infrastructure/oil-and-gas/Wabtec-Wins-Drill-Motor-Deal-with-Megha-Engineering-Infrastructure/22427)
- MEIL has replaced one hydraulic rig at in the KLDDX oil well in Kalol oil field near Ahmedabad on April, 2021 (source : https://www.constructionworld.in/energy-infrastructure/oil-and-gas/meil-made-india---s-first-indigenous-hydraulic-rig-begins-ops/26531)
In the Wabtec story of 2019, it clearly looks like a rig refurbishment project but since 2021, ONGC, Government of India, Puppet Godi Media and MEIL is trying to sell it as Brand New Indigenous Made In India rigs.
And in 2019, MEIL didn't have any of the 3 advantages mentioned in bullet points above, then how did they get the order in 2019?
Everyone at ONGC however knows these are refurbished rigs and even in Kalol oilfield story, MEIL admits remaining 46 oil rigs are only getting assembled at Rajamundry Oilfields. They don't mention, where these "made in India" parts of the rigs were made.
Now onshore oil rigs are never thrown out when operation ends at an oil field, they are moved or dismantled and reassembled as an refurbished oil rig. Those are cost-effective ways for oil exploration. But ONGC price tag is extremely high for refurbished oil rigs, almost 10 times over Few real oil & gas experts I talkedwith agree on that..
But in the present circumstances, who in the media would call a Modi Government Scam, a Scam?
Back to 2022, PMCARES fund wasn't a fad anymore and BJP wanted Electoral Bonds and more ..
On 7th January 2022, Megha Engineering bought 70 One Crore denomination Electoral bonds, out of which 60 were encashed by BJP. Strangely enough JD(U) claimed they found 10 Electoral Bonds in a sealed Envelope and encashed them. 🤣🤣🤣
Incidentally JD(U) wasn't in alliance with BJP then but they fought Bihar state elections in alliance with BJP. When I started writing this blog, JD(U) was back in alliance with BJP and running the Bihar government in coalition with them. But this is a long post and I haven't checked news today; So I make no claim whether they are in NDA or not, now or by the time I finish this post.
What I know for a certainty, is that NHAI had floated a tender for Expressway between Amas-Darbhanga in Bihar and this double engine bribery via Electoral Bond bode well for MEIL. On March 5, tenders were opened and let me quote a Media report, from 5th March, 2022
"Megha Engineering and Infrastructures Ltd. is the only bidder for constructing 47 km Package 3 of the 230 km Amas – Darbhanga Expressway (NH-119D) after National Highways Authority of India (NHAI) opened technical bids on Friday.
This 4 lane access-controlled highway will be the first expressway in Bihar state. It will run in north-south orientation to link the outskirts of Aurangabad – Gaya – Patna – Darbhanga, and use portions of the under construction Patna Outer Ring Road and 9.75 km Kachchi Dargah – Bidupur Bridge projects.
Package 3 lies north of Patna and will connect village Kalyanpur (Km 0.000) to village Balbhadarpur (Km. 47.000). NHAI invited tenders its construction in January 2022 with a 2 year deadline and Rs. 1109 crore estimate.
Brief Scope: Construction of Four Lane Access Controlled Greenfield National Highway (NH-119D) under Bharatmala Pariyojana from village Kalyanpur (Design Ch. 0.000) to village Balbhadarpur (Design Ch. 47.000) (Amas-Darbhanga Package-III) in Bihar on HAM
Whether NHAI is satisfied or not with receiving just 1 bid remains to be seen. If they aren’t, then this will head to a retender. If they are, then Megha’s technical bid will be evaluated for the next steps in the tendering process.
In the future, this expressway will be extended from Darbhanga to Jaynagar on the India-Nepal border."
Do you think Government of India's NHAI retendered? Ha ha ha..
But MEIL's corruption is Nothing compared to Godi Media Times of India's Corruption, They intentionally kept quiet about 60 crore BJP got from Megha's 7th January Electoral Bond purchase and highlighted only JD(U)'s 10 crore.
I believe Megha Engineering may one day mend their way, but this Godi Media is far far more dangerous, Times of India is so ignorant, they don't even know it was a Central Government's tender and allotment was done by NHAI as this was a national highway project. So BJP's receiving 60 crore from MEIL was much bigger and crucial bribe than JD(U) getting 10 crore.
Irregularities were on part of NHAI, why they didn't retender when they received just one bid. They could have extended the date of submission and advertised that on Newspapers..
It is not Megha Engineering's fault that out of so many infrastructure companies, nobody else bid for Amas-Darbhanga Expressway.
But yes, the electoral Bond splurge does make them very suspicious.
But Bad Godi Media is making our task 10000 times more difficult with their misinformation campaign.
On 7th April, Megha Engineering again bought Electoral Bonds worth 25 Crore BJP got 5 crore and TRS (BRS) got 20 crore.
On the following day, 8th April, 2022, MEIL subsidiary "Evey Trans Private Limited" bought 6 crore and paid again to TRS.
AND AS AN HAPPY COINCIDENCE, OLECTRA & EVEY TRANS WINS 500 CRORE ORDER IN TELANGANA IN JULY, 2022.
if I quote this report further, you will find that Central Government was involved in this decision making as well, here it is :
"The Telangana State Road Transport Corporation (TSRTC) will get 300 electric buses from Hyderabad-based Olectra Greentech Limited (OLECTRA), a group company of Megha Engineering And Infrastructures Limited, for around Rs 500 crore.
The MEIL group company, Evey Trans Private (EVEY) has won the Letter of Award (LoA) to supply e-buses under the central government’s FAME-II scheme.
These 300 E-buses will be delivered over a 12-year period under a Gross Cost Contract (GCC)/OPEX format."
WHAT IS FAME-II ?
Faster Adoption & Manufacturing Electric (or Hybrid) vehicles scheme is called as FAME. It is run by National Automotive Board under Ministry of Heavy Engineering. The central government is kind enough to keep a website: https://fame2.heavyindustries.gov.in/Index.aspx
FAME-I Started in 2015.
FAME-II started in 2019 and was supposed to work upto 2022.
" Government has approved Phase-II of FAME Scheme with an outlay of Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019. Out of total budgetary support, about 86 percent of fund has been allocated for Demand Incentive so as to create demand for Electric Vehicles (xEVs) in the country. This phase aims to generate demand by way of supporting 7000 Electric Buses (e-bus), 5 lakh Electric Three Wheelers (e-3W), 55000 Electric Four Wheeler Passenger Cars (including Strong Hybrid) (e-4W)and 10 lakh Electric Two Wheelers (e-2W). However, depending upon off-take of different category of xEVs, these numbers may vary as the provision has been made for inter as well as intra segment wise fungibility. In addition, creation of Charging Infrastructure will also be supported under the Scheme."
So Telangana Government and other state governments had to choose from FAME listed manufacturers. Out of 7000 buses to support under this, most went to MEIL's Olectra and they were to be operated by Evey Trans.
This FAME schemes has been a great boost to Chinese EV manufacturers, who has been supplying most of the parts to India where final assembly gets completed. I have already mentioned Olectra and Chinese BYD collaboration in part 1 (ie the last blog post) of Megha Untold stories.
What Indian Corrupt Business Media won't tell you is that Olectra Greentech had registered charges of 283 crores each in favour of Government run SBI and SBICAP Trustees company Limited on May, 2022. In 2022, another big charge of 105 crore was registered for ICICI Bank.
Once has to be very good books of Finance Ministry to enjoy credit lines and order portfolio like that.
Olectra Greentech's vehicles are all under hypothecation and operation will be done by Evey Trans who will get operating profits.. I'll say good luck to Bankers for getting the loans back.
It is obvious, 12 year contract to get eBus won't be successful because of Olectra's debts (open charges: 11,564,395,400 or 1156. 43 crore as of Today); while in their Balance Sheet they reported only 654.0063 crores in total liability and in their P/L they reported only 70 crore as profit.
Their annual report also states that in AGM they have resolved to increase their debt limit to 5000 crore from then 1000 crore.
But still same contracts were rolled out in BJP ruled states like Goa, Deradun in Uttarakhand as well.. why, Ministry of heavy engineering had to forward pay, FAME-II subsidies.
Remember it started with BJP ruled Gujarat ... back when Olectra was called Olectra-BYD showing their Chinese collaborators identity.
When it comes to EV Four wheelers, big Auto tycoons like Mahindra and Bajaj gets FAME-II benefits. Nobody in Indian Media will dare to call out FAME-II scams.
More Payments followed in 2022,
MEIL bought 25 crore of Electoral Bonds and paid to then Telangana ruling BRS on 5th July, just weeks before this FAME-II order, Another happy coincidence, I guess!
MEIL bought 25 crore of Electoral Bonds and paid to then Tamil Nadu ruling DMK on 8th July..
MEIL bought 10 crore of Electoral Bonds and paid to then NDA on 10th October, 8 crore going to BJP and 2 crore to their local ally, Filmstar run "JanaSena" .
Megha Gas : let me introduce you to this MEIL subsidiary.
Although Petroleum and Natural Gas Regulatory Board allocates pipelines and gas grids to MEIL, the parent company, but the gas grid operations are done by this company:
They have a beautiful website called Meghagas.com
I also find in their short journey of 2.5 years, they managed to garner a borrowing charge from Yes Bank amounting to 50 crore.
I wish this entity all the best as it outbid Adani group in city gas grid contracts from PNGRB. They won 15 Distribution Geographical Area (GA) while Adani won 14 GAs. Yay, take that .. Adani!!!
In next and final part of Megha Untold stories (it not my fault, their bonds never seem to finish) , I will discuss rest of the Electoral Bond purchases, PNGRB contracts and other parties as well. Then I'll move to other infrastructure players who bought Electoral Bonds, why target one player when many did the same act.
Stay Alert, Stay Awake.. and wait for the update
