Sailgate: PIL filed against irregularities in yachting – sport, services and import

A PIL has been filed by Anand Jondhale in the Mumbai High Court about irregularities in Sailing. Some of the stories are among those I exposed here. Others are ones I had been meaning to write. This quick post just places it all out for your convenience.

The PIL names:

1. Union of India
2. State of Maharashtra
3. The Secretary of the Ministry of Youth Affairs and Sports
4. President, The Yachting Association of India (YAI)
5. Captain Homi Motivala
6. Captain Arvind Raghuwanshi
7.  Lt. Col Gautama Dutta
8. Captain Monty Khanna
9. Captain Rajesh Sarin
10. The Commissioner of Customs
11. Central Intelligence Unit
12. The Chief Commissioner of Customs,Zone-I
13. The Director of Income Tax (Intelligence)
14. The Special Director,  Directorate of Enforcement
15. The Ministry of Shipping Mercantile
16. The Chief Surveyor and Marine Engineer
17. The Secretary, Home Department
18. Mr. Anil Ambani
19. Mrs. Tina Ambani
20. M/s. Reliance Transport & Travels Pvt. Ltd.

This Petition is being moved for an exemplary action in relation to corruption by certain personnel of Armed forces in the Sports of Yachting, illegal commercial exploitation of boats/yachts for personal benefits without valid permissions and customs clearance which has resulted in huge misappropriation of taxpayers money spent by the Ministry of Youth Affairs and Sports for winning an Olympic Medal in the Sports of Yachting and the unchecked, unimpeded, unhindered, unrestricted movements of boats and yachts which has already caused a gigantic terror attack on the city of Mumbai on 26th November, 2008.

…

4.1 The Petitioner states that, the Government of India is spending crores of rupees through the Ministry of Youth Affairs and Sports to win an Olympic medal in the sport of yachting and this is done through Yachting Association of India (YAI) which is headed by none other than the Chief of Naval Staff. The Petitioner would like to bring the following facts to the notice and request for exemplary action in relation to corruption by certain personnel of the armed forces in the sport of yachting and illegal commercial exploitation of boats for personal benefits without valid permissions and customs clearance. The Petitioner states that, in June 2005, the Honorary Secretary General of the YAI had reported cases of misappropriation of Government funds by some serving / retired armed forces personnel. A xerox copy of report of the Honorary Secretary General of the YAI dated 03/06/2005 is annexed herewith and marked as Annexure “A” to this Petition.
The Petitioner states that, It was brought to the notice of the President YAI, that a few yachtspersons who had participated in overseas events, during 2004 – 2005, had allegedly submitted false bills and supporting documents and thus claimed excess funds from the Ministry of Youth Affairs & Sports, Government of India, through the YAI.

4.2. The Petitioner states that, accordingly, the Indian Navy conducted an enquiry to ascertain the facts and determine the total amount misappropriated, so that necessary action could be initiated to punish the guilty and the excess money claimed by submission of false bills by them could be refunded to the Ministry of Youth Affairs & Sports, Government of India. The Petitioner further states that, It was established that some of the yacht persons had indeed falsified bills, receipts and other supporting documents and claimed excess funds. A copy of the report dated 28/11/2005 submitted by Captain Rajesh Sarin to the Honorary Secretary General is annexed herewith and marked as Annexure “B” to this Petition.
The Petitioner states that, it can be noted that while the investigation / inquiry were conducted most of those who had submitted false accounts were serving with either the Indian Navy / Indian Army and once it was established that they were guilty of misappropriation of Government funds, no action was initiated to punish the guilty and for unknown reasons token sums were recovered and deposited with the Ministry of Youth Affairs and Sports, Government of India in late 2011. A copy of the YAI letter dated 22/11/2011 is annexed herewith and marked as Annexure “C” to this Petition.

4.3. The Petitioner further states that, those found guilty of embezzlement were quietly let off and Captain Homi Motivala, Captain Arvind Raghuwanshi and Lt Col Gautama Dutta resigned from the armed forces, without any action being taken against them. The Petitioner states that, it is pertinent to mention that when the enquiry was being conducted by Captain Rajesh Sarin, the then President of the YAI and Chief of the Naval Staff had appointed Captain Monty Khanna as the Secretary General of the YAI. It was during his tenure that the necessary actions on the guilty had to be initiated, however, he manipulated the system in such a manner that all those found guilty were permitted to get away. The same officer, who is now promoted to the rank of Rear Admiral, has once again been appointed as the Secretary General. This is in utter disrespect of the high standards of morality that should be exercised by the Indian Armed Forces and action needs to be forthwith taken on the guilty and the YAI Secretary.

4.4 The Petitioner further states that, some of the yachtspersons are operating bank accounts in foreign countries. It is pertinent to mention that no individual is permitted to open a bank account outside India without the approval of the Reserve Bank of India, however, despite knowing the rules no action was ever initiated against such officers by the administrators of the YAI. Several of the active defense personnel and participating in government funded sports events have been fraudulently claiming pension from the ministry of sports and youth affairs since 1998 despite being actively participating and claiming sports prize. The Petitioner states that, YAI had recommended Captain Homi Motivala for the cash award, for coaching sailors, who had won a Gold Medal at the World Championship. This bogus claim of coaching was refuted by some members of the YAI and when it was established that the claim had been irregularly made, Captain Motivala, was asked to donate Rs. 7.50 lakhs to the YAI and no further action was ever taken. In addition, Captain Motivala was recommended for award of the Dronacharya Award which was conferred by the Government of India in 2003. The Petitioner states that, it is pertinent to mention that when it was found that he was not eligible for the cash award or conferment of National honor, why no action was ever taken to revoke these awards and even today these officers get their monthly pension for cheating. A xerox copy an email dated 03/05/2004 from Commodore S. K. Mongia to Admiral Madhvendra Singh describing aforesaid illegal activities is annexed herewith and marked as Annexure “D” to this Petition.

4.5 The Petitioner states that, Property of the Indian Navy is being commercially utilized by a Private Limited Company which has been registered with the address of Indian Naval Waterman Ship Training Centre, Colaba, Mumbai. Commander R Mahesh,a serving Naval Officer, is one of the Board of Directors of this Private Limited Company. This is against all rules of the Armed Forces. How can pvt ltd company operate from defence property? A copy of the incorporation certificate and PAN CARD of the said company is annexed herewith and marked as Annexure “E” to this Petition.

The Petitioner states that, there was a time when the citizens of India, our great country used to look at the officers of the armed forces with great respect due to their dedication to this country and for their willingness to sacrifice their lives to protect the country. However the incidents highlighted above, have tarnished the image of the armed forces. The xerox copies of the news paper reports regarding the scam committed by the Respondents Nos. 5 to 7 are annexed herewith and marked Annexure “F” to this petition.

4.6. The Petitioner states that, Lt Col Gautam Dutta has been found guilty of several financial irregularities in the Army Court of Inquiry but his father Maj Gen S Dutta threatened and pressurized the enquiry officer. Lt Col Gautam Dutta quietly resigned from the Army to escape punishment and set up Marine Solutions Pvt Ltd to import luxury yachts for the rich and famous. The Petitioner states that at the behest of Respondents Nos. 18 to 19, 120 feet luxury yacht TIAN was imported by marine solutions by fraud to cheat the customs of import levies. The xerox Copy of the notice u/s. 124 of the Customs Act issued by the Commissioner of Customs (Imports) in this matter is annexed herewith and marked as Annexure “G” to this Petition.

TIAN was impounded by the Customs and it was given provisional release restricting the movement of the TIAN yacht. TIAN commander captain Homi Motivala who also resigned from the Navy because of an enquiry into financial irregularities and got Dronacharya award on bogus claims has been filing false TIAN YACHT MOVEMENT REPORTS with the Customs. TIAN is not supposed to leave Mumbai harbour without customs approval but the Goa Port Master and Harbor Master reports show that TIAN has been in Goa Panaji port regularly. Commander Homi Motivala has submitted passenger and cargo manifest of TIAN yacht with Goa Port Authority at the same time the Customs Fortnightly Movement reports shows TIAN is in Mumbai harbor. The Petitioner states that, TIAN is a Pleasure Yacht from Ferretti, Italy and cannot be used for any other purpose except for passenger transport but the Cargo manifest submitted with the Panaji Port reveals Iron Ore cargo on TIAN. After inflatable dinghy-borne terrorists laid siege to Mumbai in the country’s worst terror attack four years ago, security agencies and politicians both at the Centre and State had spoken of improving coastal security. Four years later little seems to have changed. The xerox copies of Detention Memo, Port Clearances, Vessel Profile, Provisional Release Letter are annexed herewith and marked as Annexure “H Coll.” to this Petition.

4.7 The Petitioner states that, Marine Solutions also operates an illegal party barge ISOLA at the restricted Mora coast, Uran. ISOLA was originally constructed as a dumb service pontoon meant for transportation of waste and scraps from ship to shore and was registered as DUMB SERVICE PONTOON PIT STOP at KALYAN in 2009 but has been operating as a luxury floating hotel ISOLA from 2010 onwards by Lt Col Gautam Dutta and his father Maj Gen S Dutta without permission or approvals from Mumbai Port Trust, Mercantile Marine Department of the Shipping Ministry, Coast Guard, Navy and the local authorities like the Maharashtra Maritime Board. ISOLA is frequented by top business corporates and bureaucrats with music and free flowing liquor on the high seas posing grave security threat and risk to the shipping traffic and underground power and data cables linking the commercial capital Mumbai to the financial world centers viz. Hong Kong, Singapore, London and New York. All relevant documents are annexed herewith and marked as Annexure “I” to this Petition.

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:: SYNOPSIS ::

Year 2003:

Captain Motivala was recommended for award of the Dronacharya Award which was conferred by the Government of India.

03/05/2004:
Commodore S. K. Mongia writes to Admiral Madhvendra Singh describing the illegal activities of the Respondents Nos. 5 to 7.

June 2005:
The Honorary Secretary General of the YAI had reported cases of misappropriation of Government funds by some serving / retired armed forces personnel. It was established that some of the yacht persons had indeed falsified bills, receipts and other supporting documents and claimed excess funds.
YAI had recommended Captain Homi Motivala for the cash/Dronacharya award, for coaching sailors, who had won a Gold Medal at the World Championship.This bogus claim of coaching was refuted by some members of the YAI and when it was established that the claim had been irregularly made, Captain Motivala, was asked to donate Rs. 7.50 lakhs to the YAI.

2009-10:
Property of the Indian Navy is being commercially utilized by a Private Limited Company which has been registered by the Respondents Nos. 5 to 7 with the address of Indian Naval Waterman Ship Training Centre, Colaba, Mumbai. Commander R Mahesh,a serving Naval Officer, is one of the Board of Directors of this Private Limited Company. This is against all rules of the Armed Forces. How can pvt ltd company operate from defence property?

22/11/2011:
While the investigation / inquiry were conducted most of those who had submitted false accounts were serving with either the Indian Navy / Indian Army and once it was established that they were guilty of misappropriation of Government funds, no action was initiated to punish the guilty and for unknown reasons token sums were recovered and deposited with the Ministry of Youth Affairs and Sports.

Year 2011 :
Lt Col Gautam Dutta (R.No.7) quietly resigned from the Army to escape punishment and set up Marine Solutions Pvt Ltd to import luxury yachts for the rich and famous. At the behest of Respondents Nos. 18 to 19, 120 feet luxury yacht TIAN was imported by Marine solutions by fraud to cheat the customs of import levies. A notice u/s. 124 of the Customs Act was issued by the Commissioner of Customs (Imports) in this matter.

TIAN was impounded by the Customs and it was given provisional release restricting the movement of the TIAN yacht. TIAN commander captain Homi Motivala who also resigned from the Navy because of an enquiry into financial irregularities and got Dronacharya award on bogus claims has been filing false TIAN YACHT MOVEMENT REPORTS with the Customs. TIAN is not supposed to leave Mumbai harbour without customs approval but the Goa Port Master and Harbor Master reports show that TIAN has been in Goa Panaji port regularly. Commander Homi Motivala has submitted passenger and cargo manifest of TIAN yacht with Goa Port Authority at the same time the Customs Fortnightly Movement reports shows TIAN is in Mumbai harbor. The Petitioner states that, TIAN is a Pleasure Yacht from Ferretti, Italy and cannot be used for any other purpose except for passenger transport but the Cargo manifest submitted with the Panaji Port reveals Iron Ore cargo on TIAN. After inflatable dinghy-borne terrorists laid siege to Mumbai in the country’s worst terror attack four years ago, security agencies and politicians both at the Centre and State had spoken of improving coastal security. Four years later little seems to have changed.

Marine Solutions also operates an illegal party barge ISOLA at the restricted Mora coast, Uran. ISOLA was originally constructed as a dumb service pontoon meant for transportation of waste and scraps from ship to shore and was registered as DUMB SERVICE PONTOON PIT STOP at KALYAN in 2009 but has been operating as a luxury floating hotel ISOLA from 2010 onwards by Lt Col Gautam Dutta and his father Maj Gen S Dutta without permission or approvals from Mumbai Port Trust, Mercantile Marine Department of the Shipping Ministry, Coast Guard, Navy and the local authorities like the Maharashtra Maritime Board. ISOLA is frequented by top business corporate and bureaucrats with music and free flowing liquor on the high seas posing grave security threat and risk to the shipping traffic and underground power and data cables linking the commercial capital Mumbai to the financial world centers viz. Hong Kong, Singapore, London and New York.