The generous terms of the contract, which give a Kolkata-based firm use of the building on land valued at around Rs 3,000 crore for 21 years, are part of an agreement concluded in April 2003 with the Institute of Genomics and Integrative Biology (IGIB). The PPP agreement for the land — owned by the Council of Scientific and Industrial Research (CSIR) — was signed when IGIB was headed by Samir Brahmachari, who currently heads CSIR.
As in-charge of IGIB, Brahmachari negotiated an agreement with Chatterjee Management Services (CMS) to set up Centre of Genomic Application (TGCA) at the building, which is at the centre of the controversy. Unusually, the agreement gave the private player the right to use the building for 21 years if the project, for any reason, became unviable. This clause is now likely to deliver the premises to CMS as the TCGA activities were suspended since 2011 after the project began incurring losses.
On visiting the site, TOI found the building is lying vacant. A block next door is buzzing with action, but not the building with Application Genomics facade. As per the agreement — a copy is with TOI — IGIB was to provide land for the TGCA building and install equipment, while the private partner provided capital for its construction as well as recurring costs. In a sharp indictment, the CAG found the PPP agreement, drawn by IGIB under CSIR, to favour CMS.
TOI tried to contract CMS through email and phone, but could not get response.
But Brahmachari, who is now DG, CSIR, defends the agreement saying it was lauded as a "best practice" in the field of science. "Ownership of land still belongs to CSIR and it can buy back the building on payment of its book value to the private partner," he told TOI.
The DG blamed 'vested interests' backed by multi-national companies led to audit and inquiries which forced closure of the project. The CAG report tabled in Parliament, however, notes "due diligence" in the process of selecting private partner was not done and IGIB entered into agreement without waiting for the consultant's (E&Y) report, which was hired by the Institute itself.
"The agreement drawn up with the private partner favoured the later and did not have adequate provisions for safeguarding government interests," the CAG said.
Brahmachari disagreed with auditor's finding, saying CSIR never opts for tender or inviting bids in a scientific project. Arguing that the auditor ignored the performance of TCGA and benefits of a world class genomic facility, the DG lambasted CAG, saying auditors are generally graduates who don't understand science.
According to the total outlay of Rs 26.05 crore of the project, the government's share (major equipment) was Rs 13.55 crore, and private contribution (building construction and equipment) was Rs 12.50 crore. But, the cost of land to be provided by CSIR for the proposed building was not included in total plan outlay, the report said.
After CAG report and complaints of irregularities, the issue has reached the Prime Minister's Office as senior CPM leader Sitaram Yechury has written two letters demanding a CBI probe.
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