SHCIL’s e-stamping technology agreement with Crimson Logic, a reputed Singapore company, is also interesting. Although it involves sensitive revenue project, the agreement is valid for only 5 years with no technology transfer. Worse, the actual contract is signed with Unitech Value Solutions Pvt Ltd (UVS), a clandestine SSL subsidiary, registered at Winsland House Singapore, 239519. UVS in turn has an agreement with SHCIL.

To sum up, SHCIL bags the e-stamping contract, but a Singapore-based subsidiary of its own subsidiary SSL, (effectively the grand-child of SHCIL) routes the money. SSL is a brokerage company, now 76 per cent owned by private individuals and foreigners. More importantly, SHCIL’s majority shareholders — all government institutions — are completely in the dark about these secret deals. The key to the investigation ordered by the government will be to ferret out the real beneficiaries of UVS. This company’s existence is clearly superfluous, but it is ideally placed to receive kickbacks from suppliers and manipulate SHCIL as well as SSL.

Under the technology supply agreement with SHCIL and UVS, Crimson Logic will be paid Singapore $25 million over five years at 5 million a year through UVS. But how much UVS really pay Crimson Logic for the technology? An investigation will provide the answer. Curiously, the agreement with Crimson Logic included technology to be provided for e-stamping operations in countries such as Pakistan, Bangladesh, Myanmar and Bhutan. Were these technology cost loaded on to the Indian e-stamping programme? In fact, we have specific information about large payment of Singapore $3,60,000 has already been made to the Singapore company on March 15, 2007.

... contd.