Question : PURCHASE OF HOUSE FOR CMD OF GAIL



(a) whether a new house has been purchased for the residence of CMD of GAIL recently;

(b) if so, the reasons therefor and the total amount spent on purchase and its renovation separately;

(c) whether prior approval of the Board of General Body was taken therefor;

(d) if so, the details thereof;

(e) the reasons for not opting for house on rent/lease rather than spending huge public funds; and

(f) the officials responsible therefor and action likely to be taken in this regard?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRIMATI SUMITRA MAHAJAN)

(a) Yes, Sir.

(b) It has been reported by the GAIL that the house allotted to earlier C&MD was allotted to another Director of GAIL. Therefore, GAIL decided to purchase a house for the C&MD, GAIL. The house was purchased at a cost of Rs.3.27 crores and renovation of the said house was done at a cost of about Rs.76 lakhs.

(c)&(d) GAIL Board of Directors had approved purchase of the house for C&MD at a total cost of Rs.3.27 crores for the residence, official use of C&MD, GAIL and usage of one of the floors of the house for holding Top Management Meetings and/or for Guest House for International visitors. Subsequently, GAIL Board was informed about the expenditure incurred on renovation and furnishing of the premises.

(e) GAIL had considered it more economical in long term to purchase the house than renting the house for C&MD.

(f) Unless the charge of irregular action is established question of action against officials does not arise.