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( 275 Pages) Vol 1 ( Preliminary Report) of Sarkaria Commission

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( 275 Pages) Vol 1 ( Preliminary Report) of Sarkaria Commission SARKARIA COMMISSION OF INQUIRY (Appointed under Act No. 60 of 1952 to inquire into the Allegations against the erstwhile Chief Minister and other Ministers of Tamil Nadu) FINAL REPORT VOLUME 2 [On Serial Nos. 14 and 17 referred to the Commission vf'HOCabinet Secretariat (Department of Personnel and Administrative Reforms) Gazette Notification No. S.O. 74 (E), dated 3rd February 1976. ] CONTENTS (Discussion of evidence and findings on allegations.) Allegation Serial ndnber.Svyect. Paobs VOLUME 1. 1 Mck&lfl "Pictures • • • • • • •• •• • • •• 1-19 • • » • •• • • 2 Anjukam Pictures. •» . 20-26 4 Immovable properties of Chief Minister Thiru M. Karunanidhi at Gopalapunun, Madras. 27-34 5 Anjukam Pathippaganx . 35-42 6 Son’s house at Tiruvarur. 43 7 Thirumathi Dharma . 44-52 8 Thiru Amirtham, Nephew. 53-56 9 Thiru Vaidyalingam, P.A. to Chief Minister . 57-60 10 Veeranam Project. 61-128 13 Family concerns of J. K. K. Angappa Chettiar and Brothers .. 128-138 VOLUME 2. 14 Disposal of Samayanallur Power Station . 1-48 17 Sugar Scandal . «• . 51-210 VOLUME 3. 18 Tanjorc Co-operative Marketing Federation _ .. .. — 1-54 20 Kodaikanal—Palani Road. 54-55 21 D. M. K. Party and Private Trusts — (A) The Madras D.M.K. Charitable Trust. 56-60 (B) The Madurai District D.M.K. Charitable Trust .. .. 60-62 (C) Navalar Nedunchezhian Educational Trust . 62-68 (D) Perarignar Anna Arakkattalai .. 68-74 (E) Mandram Trust . 74-75 (F) Rama Arangannal Arakkattalai .. 75-76 ii Allegation Serial mmtber. Pages VOLUME 3—cora. (G) Kalaignar Karunanidhi Charitable Trust .. .. .. 76-77 (H) Anna Trust .. ** .. •• •• W-W (I) Muthuvelar Arakkattalai »« .« . 78-8P (J) Dr. Vetrichelvi Anbazhagan Trust . 80-81 Conclusion on (A) to (J) — . 81-83 23 (1) Vallanadu Land Development Bank. 84-213 (2) Tanjore Urban Bank affairs .. .. *. «• «■ •• 213-214 (3) Tanjore Central Co-operative Bank affairs. 214 (4) Dharmapuri District Central Cooperative Bank rfkirs ,. 215-217 . VOLUME 4.'* 24 Using the State Machinery and Armed Gangs to organise D.M.K. Trade Unions — (i) Simpson Company affairs 1-27 28-29 (iii) State ElectHeify Board aflbirs . 30-33 25 Intimidation and attack on the Press 34-60 26 Misuse of State Apparatus fcnf Party purposes. 61-66 27 Misuse of Police to crush all opposition — (a) Incident on 27th August 1972 at Singampuneri in Ramanatha- puram district 68-72 (6) Incident in October 1971 at St. Xavier’s College, Paiayam- kottai in Tirunelveli.Di*rtot. 72-73 (c) Incident in the month of S4pte«cbtf lfTl mt KndavampWti near Bhavani in Coimbatore District. 73-74 (d) Incident in November 1971 at Karivalamvandanallur in Tirunelveli District . 74-75 (e) Incident in January 1972—Attack on Trade Uldon Leaders .. 75-76 (/) Incident on 26th February 1972at NamAkalfaBafcm District. 76-77 (g) Incident on 27th February 19T2, at Tlrupattar Town to Rama- nathapuram District . 77-79 (A) A (/) Incidents at Peddanaickenpalayam, Sattur, Manamadurai, etc. .. .. .. 79-&0 28 Sakthi Pipes Ltd. * . 81-110 Summary of Conclusions. 111—129 General Observations . 131-136 Annexure ‘ A ’—Statistical information regarding Affidavits, etc, received. 137-140 VOLUME 2 Vol. II—A ALLEGATION NO. 14 (DISPOSAL OF SAMAYANALLUR POWER STATION) AGAINST Shri O. P. Raman, former Minister for Electricity AND Shri M. Kanmanidhi, former Chief Minister This Allegation as adumbrated in the Memorandum of Shri M. G. Ramachandran, reads as follows:— “SAMAYANALLUR POWER STATION Worth Rs. 1 lO'OO lakhs—Sold for Rs. 58‘00 lakhs—By O. P. Raman, Minister of Electricity, under instructions by Chief Minister—In spite of acute shortage affecting the Tamil Nadu and the Industries, a dark game of corrupt bargain was made behind the screen without correct procedure. The entire Samayanallur Power Station was dismantled and sold for Rs. 58’00 lakhs. The purchaser is believed to have realised so far Rs. 80-00 lakhs and still he has got stocks worth Rs. 25'00 lakhs. Selling public property for filling the pockets of Ministers will be fully evidenced on an enquiry.” The full facts of the case as they emerge from the records, are as follows:— There was a Thermal Power Station at Samayanallur in Madurai District. It was constructed between the years, 1947 and 1954. A four MW electricity set was installed there. It was com¬ missioned on 12-1-1951. A second unit of 10 MW on this Station was commissioned in the year 1954, increasing the total installed capacity of the Thermal Station to 14 MW. The cost of the whole plant and machinery was Rs. 106 lakhs. In 1965, the Madras State Electricity Board (hereinafter referred to as the ‘ Board ’) set up a High Power Committee known as the Economy and Efficiency Committee to examine and report on the measures to be adopted to reorganise and streamline the various generating units vesting in the Board. The Secretary of the Board in his D.O. letter No. 1737/C/68-1, dated 8-4-1968, addressed to the Chief Engineer, Electricity Board, intimated that the Technical Member of the Board had suggested reduction in the cost price of the power by shutting down uneconomical generating sets to the extent possible, and that this suggestion might be placed before the Economy and Efficiency Committee. The Secretary further requested the Chief Engineer to submit a note by 11-4-1968. Accordingly, the Chief Engineer forwarded a note to the Secretary of the Board. The main points brought out in this note were:— (a) The cost per unit sent out from Samayanallur was more than 12 paise due to the high cost of coal delivered at Samayanallur and the low efficiency of the Turbo-alternator sets. Power was available at much cheaper rate from Neyveli and Kerala. (ib) The 14 MW installed capacity of Samayanallur Thermal Station formed only 1% of the installed capacity of the grid and as such, the disposal of the set would have negligible effect on the grid capacity. (c) With Madurai tied in with a super-Thermal Station at Neyveli and Kerala grid, the need to form up the Papanasam and Periyar generation with Samayanallur set, was no longer there. 2 The Economy and Efficiency Committee at its meeting held on 16-7-1968, discussed the proposal for closing down the Samayanallur Thermal Station and decided that further coal supply to the Station should be stopped and the Station closed down as soon as the coal stock was ex¬ hausted. The Board accepted this recommendation at its meeting on 25-10-1968, and asked the Chief Engineer to submit a note on the disposal of the plant and machinery of Samayanallur Thermal Station. The Chief Engineer in his letter dated 8-1-1968 addressed to the Board, made these recommendations:— (a) That the Thermal Station be closed down and the plant and machinery available there (excepting the transformers, station battery, H.T. Switch Gear, Cables, static machine tools and railway siding), disposed of by inviting open tenders. (b) That the land and the building of the Station be retained, pending further examination of their continued use. The reasons stated in the note in support of the above recommendations, were:— (i) The cost per unit sent out from Samayanallur worked out to 12'32 paise in 1967-68 as against 8'8 paise at Basin Bridge. (ii) The low efficiency of the turbo alternator sets at Samayanallur in view of their smaller size compared with the sets in Basin Bridge. (iii) The Station was running during summer months, only as a thermal back-up, when the irrigation discharge at Papanasam was low, that is, from October to June. (iv) The contribution of the Station to the grid was just 1 % compared to 26% of Neyveli Thermal Station. The recommendations made by the Chief Engineer were approved by the Technical Member and the Chairman of the Board on 30-7-1969 and 3-8-1969 respectively, and open tenders were ifivited by publication of tender notice in newspapers. The plant and machinery offered for sale were classified into nine specifications numbered as E. 1171 to E. 1179. Tenders were opened on 15-10-1969. It was found that the total of the highest individual offers for all these specifications was Rs. 34,66,786. In view of this disparity between the depre¬ ciated book value and the offers, no tender was accepted. An instructed by the then Chairman of the Board (Shri K. R. Radhakrishnan), a telegram was sent on 3-12-1969 to the Director, Central Water and Power Commission, New Delhi, enquiring whether the boilers and T.A. sets available at Samayanallur were required by other States or Union Territories. On receiving a reference from the Central Water and Power Commission, New Delhi, the Chief Engineer, in his letter, dated 16-1-1970, addressed to the Chief Engineer for Electricity, Punjab State Electricity Board, sent a statement showing the details of the various equipments, spares, etc., available for disposal at Samayanallur and enquired whether the Punjab State Elec¬ tricity Board was interested in purchasing the Power Station. The officials of the Punjab Board visited Samayanallur and inspected the plant and machinery. Thereafter, the Chairman of the Punjab Board in his letter dated 6/9-2-1970 addressed to the Chairman, Tamil Nadu Board, intimated that the Punjab Board proposed to purchase the 10 MW and 4 MW thermal sets subject to certain conditions. Subsequently, the representatives of the Punjab Board on 9-3-1970 met the Members of the Tamil Nadu Board. The Punjab Board offered Rs. 42 lakhs, excluding two diesel locos and the 40 tonne weigh bridge, for the plant and machinery of the Power Station, and further agreed to pay sales-tax if the transaction wa^-eligible to sales-tax.
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