NBCC (India) a Mini-ratna PSU slipped into the red today, going down over 3.5% to Rs.245; but from that level, it recovered and is now at Rs.252. It is almost like the market knows that no charges stick or matters so it took the opportunity to buy when the stock fell.

The stock is down on CBI registering corruption charges against NBCC’s Chairman-cum-managing director, Anoop Kumar Mittal and others for alleged corruption in the Rs. 2,150-crore redevelopment project of ITPO Complex at Pragati Maidan. Two accused, including a government official, have been arrested for their alleged role.

The CBI FIR states that NBCC (India) had awarded a work contract to the joint venture of Shapoorji Pallonji and Company Pvt. Ltd. and Shapoorji Pallonji Qatar WLL. Capacite Structures was allegedly trying to get a sub-contract from Shapoorji Pallonji.

The CBI stated that the deal was influenced by a government official who had demanded a Royal Enfield bike as an illegal gratification to exert his influence on Mittal and get the deal swung in favour of Capacite Structures.

The company has issued a clarification stating that it has no role to play in the alleged corruption charges as it is the contractor’s prerogative to engage the agencies in line with contract requirement. It stated that the tenders are invited in fully transparent manner through open competitive bidding system as per the CVC guidelines. An EPC tender was invited by NBCC by following due procedures on design and build basis and Letter of Award (LOA) was issued to M/s Shapoorji Pallonji and Co (P) Ltd & M/s Shapoorji Pallonji Qatar WLL (JV) on September 8, 2017.