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CBI seeks IAT order from govt in urea scam

The Central Bureau of Investigation has requested the government to furnish the copy of the order of the International Arbitral Tribunal in which the National Fertiliser Limited had filed a claim for recovery of Rs 1.33 billion from the Turkish firm Karsan which failed to honour the urea import contract.

CBI sources claim that Karsan has lost in the IAT and has been directed to pay back Rs 1.33 billion along with damages and interest to the NFL.

However, the copy of the order has neither been given to the CBI nor produced in the court of special judge where the criminal case against Karsan and seven others is going on.

CBI claims that if NFL supplies to the court the copy of the IAT order it will strengthen their hands in the case.

On July 27,1995, NFL and Karsan signed the contract for import of 200 metric tonnes of urea through a commercial agent, Sambasiva Rao of Hyderabad. But Karsan failed to supply the urea, even though the entire Rs 1.33 billion was remitted in advance.

Since the two Karsan officials, Cihan Karanci and Tuncay Alankus, are in custody since last October and were not able to go to Amsterdam, the three-day proceeding of the ITA were held in New Delhi.

Karsan had also filed counter claims against NFL for breach of the two million-tonne urea import deal.

The three-member IAT tribunal, constituted by the International Chamber of Commerce, was headed by the Amsterdam-based IAT chief Albert Vandenberg. Justice Madhukar Kenia was the representative of NFL whereas Paolo Mikchele Patocchi represented Karsan.

All proposals, including out-of court settlement by Karsan to settle the deal, have been turned down by the government.

UNI

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