At a recent meeting, the board of trustees of Jawaharlal Nehru (JN) Port decided to continue with the
agreement of DBC Port Logistics to operate a container freight station (CFS).
The port management was authorized by the board to consider levying a penalty on DBC as a deterrent against potential contractual breaches in future.
It may be recalled that in May 2012, the port authority decided to cancel the agreement over complaints that DBC was violating the licence contract by charging customers more than the rates accepted by the tariff.
The board decided to revoke the cancellation because an audit report prepared by accounting firm NK Shah and Associates does not substantiate or prove the charges made against DBC. Therefore, the board feels that the contract cannot be terminated.
NK Shah and Associates was asked by the port authority to audit the rates charged by DBC after the portÂ’s board of trustees decided to conduct a check of DBCÂ’s transactions by an external auditor following complaints of over-charging.
The audit report ready by NK Shah and Associates had concluded that DBC had violated the license contract by charging consumers more than the charge set by the Tariff Authority for Major Ports (TAMP) and by sub-letting the licensed premises to other parties for doing business, another trustee who attended the meeting said on condition of anonymity.
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