JNPT likely to scrap deal with CFC operator
The country's largest container port, Jawaharlal Nehru Port Trust (JNPT), is likely to scrap a contract with Arvind Dubash-owned DBC Port Logistics, formerly Speedy Multimodes, after JNPT's auditors found discrepancies in the rates charged by the company, reported TheEconomic Times.
On July 24, JNPT had sent a final showcause notice to Speedy Multimodes – giving it 15 days to reply – and said if the board of trustees at JNPT found the response to be unsatisfactory, then it would terminate the contract, two JNPT board members said on condition of anonymity.
Speedy Multimodes had won the licence in 2007 to operate the container freight station (CFS) at JNPT, spread across 68 acres. It is the largest CFS facility at the port.
The terms and conditions of the agreement said that the rates at the CFS were to be governed by the ones approved by the Tariff Authority for Major Ports (TAMP).
But after complaints raised by board members and customers that DBC was charging higher rates, JNPT had appointed a chartered accountant to look into the allegations. Later in May, the auditors submitted their report, which said that the rates charged were higher than those mandated by TAMP.
In their report, the auditors noted, "DBC has charged higher rates than those mandated by TAMP. We were told that these were actually all-inclusive charges for various services rendered. However, it is pertinent to mention that no documentary evidence was provided to substantiate its claim."
"Speedy had started overcharging nearly a year after they won the contract in 2007. Their contract should have been terminated then, but due to various reasons, we could not take that decision. But now, we are of the view that the contract should be terminated," a board member at JNPT told ET.
DBC Ports Logistics defended itself, saying it didn't overcharge customers, and concerns were raised mainly by competitors since DBC's rates were much less than others. It has also warned of strong legal action if their contract is terminated.
