Directorate General of Hydrocarbons (DGH) – Regulatory Capture by Big Indian Oil/Gas Companies,CBI files Case (V K Sibal),CAG finds Massive Corruption (Gold Plating Reliance)

The Directorate General of Hydrocarbons (DGH) is under fire from various government investigative agencies like CBI and CAG .Note Director General of Hydrocarbons (DGH) is a regulator under the Indian Ministry of Petroleum and Gas which was established in 1993 post economic liberalization.DGH has been entrusted with several responsibilities like implementation of New Exploration Licensing Policy(NELP), matters concerning the Production Sharing Contracts for discovered fields and exploration blocks, promotion of investment in E&P Sector and monitoring of E&P activities including review of reservoir performance of producing fields.However the regulator has apparently connived with big Indian private oil and gas companies like Reliance,Cairn,BG to defraud the Indian treasury by billions of dollars.

Note Indian ministries and regulators have been found to be massively corrupt with the 2G Telecom Scandal facing the glare from the Supreme Court .Huge loss has been caused by ministers,corporate CEOs and various politicians a number of which are in jail right now.The CAG report had said that Reliance had doubled its cost in the KG-6 Basin leading to a huge loss for the Indian government.A number of other lapses (intentional) has been found by the DGH and the Ministry each time favoring the private oil and gas companies in India.Now the CBI has filed a case of corruption against the the former chief of the DGH V K Sibal for scuttling a probe by the Central Vigilance Commission (CVC) for showing undue favors to the private companies.Note India has been stuck by a number of scams in the stock market pertaining to mid cap and small caps.This has led to huge losses for investors with some companies like Reliance Telecom,Unitech having over 90% of their share values eroded.Reliance the biggest Indian company by market capitalization might be facing the same fate if the investigative agencies and the courts do their jobs.

Ex DGH V K Sibal under CBI scanner for hampering CVC probe

The CBI today said it will soon finalise a case against former Director General of Hydrocarbons V K Sibal for allegedly scuttling an enquiry by CVC for discrepancies in oil exploration works and contracts executed by domestic and foreign players.Besides this, CBI was also likely to register another case against him as the agency claimed it had sufficient documentary evidence against Sibal in alleged discrepancies in carrying out the work and favouring leading private players and foreign consultants involved in oil and gas field explorations.