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Indian Express
30-06-2025
- Indian Express
Delhi ACB arrests engineer and contractor over misuse of irrigation and flood control funds of Rs 4 crore
The Delhi government's Anti-Corruption Branch (ACB) arrested an executive engineer and contractor of the irrigation and flood control department on Monday for the alleged misappropriation of more than Rs 4 crore over works that were never executed. ACB chief Madhur Verma said in a statement, 'The arrested accused have been identified as Gagan Kureel (under suspension since December 2023) and Arun Gupta, proprietor of M/s Baba Construction Company.' 'Multiple violations of the CPWD Works Manual, GFR-2005, and CVC Guidelines were detected. It also came to fore that fraudulent payments exceeding Rs 4.6 crore were made to contractors for non-existent civil works. RCC (reinforced cement concrete) drains and roads in Village Siraspur, North Delhi, were found to exist only on paper and not on the ground. Apart from this, fake performance bank guarantees worth R 2.24 crore were submitted and accepted in gross violation of established Rules,' the statement further read. The investigations began after a complaint was received by the vigilance branch of the irrigation and flood control department. A preliminary inquiry was initiated by a committee of engineers formed by the department's principal secretary to verify the works in question. The committee found that in four cases, 100 per cent of the tendered amount was disbursed, even though no work had been executed. The fraud involved the submission of forged bank guarantees and manipulated measurement and material test records. Following the findings, prior sanction under section 17A of the Prevention of Corruption (Amendment) Act 2018 was obtained and in March the FIR was registered. The ACB further said in the statement, 'M/s Baba Construction Company was awarded three tenders worth approximately Rs 5.3 crore for construction of both-side Reinforced Cement Concrete drains and roads in Siraspur, North Delhi. No work was executed, yet Rs 4.2 crore was released fraudulently.' Similarly, according to the ACB, M/s Amba Construction Company received Rs 43.74 lakh against a contract valued at Rs 38.98 lakh for repair and painting work at the CTP Network in Burari, North Delhi. Again, no work was found on site, the agency said. Sakshi Chand is working as an Assistant Editor with the Indian Express. She has over a decade of experience in covering crime, prisons, traffic and human interest stories. She has also covered the communal clashes in Kasganj, Aligarh, Trilokpuri riots as well as the North-East Delhi riots. Apart from being a journalist, she is also a National level basketball player and a coach. Before joining the Indian Express, she was working for The Times of India. ... Read More
Hindustan Times
05-06-2025
- Politics
- Hindustan Times
Classroom case: Probe said to focus on Jain; Sisodia's role also under scanner
Former Public Works Department (PWD) minister Satyendar Jain is the primary focus of the investigation being carried out by Delhi government's Anti-Corruption Branch (ACB) into the alleged irregularities in the construction of classrooms, while formed deputy chief minister Manish Sisodia is being probed for giving post-facto approval to the project, officials aware of the matter said on Wednesday. Jain has been summoned to appear before the bureau on June 6, and Sisodia on June 9. Both Aam Aadmi Party (AAP) leaders are to be questioned at the ACB's office in central Delhi. Senior ACB officials said the investigation was launched based on statements by contractors and architects, many of whom have pointed to Jain's direct involvement in procedural lapses and financial mismanagement. 'We will be able to make a definitive statement on their roles only after the probe is complete and the charge sheet is filed,' said one official. As for Sisodia, investigators said he granted post-facto approval for the project in 2018-19—nearly three years after the construction was completed. He also allotted deposit work for the project, a move that may not in itself be criminal, but is under scrutiny. 'Post-facto approvals are retroactive decisions often taken without prior sanction. Similarly, in deposit work, one department provides funds to another, and execution is the latter's responsibility. These are procedural acts. But we are probing deeper to determine if his actions were merely procedural or indicative of culpability,' said an investigator, requesting anonymity. According to ACB, the alleged irregularities occurred during the AAP government's drive to expand classroom infrastructure in Delhi's government-run schools. The case concerns the construction of 12,748 semi-permanent classrooms across multiple school campuses. The project was initially valued at ₹860 crore, but subsequent cost escalations—largely carried out without fresh tenders or adherence to procurement norms—brought the total to over ₹2,800 crore. ACB's April 30 FIR names both Jain and Sisodia and invokes Section 13(1) of the Prevention of Corruption Act, along with IPC Sections 409 (criminal breach of trust) and 120-B (criminal conspiracy), following clearance under Section 17-A of the POC Act. Summons issued to the two leaders cite their roles in the decision-making process and ask them to provide written submissions and supporting documents. 'Allegations have been levelled against several then-government functionaries, including you by name... Non-compliance with this notice may attract legal proceedings,' the notice reads. Both Jain and Sisodia have denied wrongdoing in earlier public statements. Officials said a key part of the investigation is focused on how consultants and architects were appointed without following Central Vigilance Commission (CVC) guidelines or the CPWD Works Manual. Cost escalations were allegedly pushed through by these consultants without inviting fresh bids, thereby bypassing competitive tendering. A senior official involved in the probe said, 'Contracts worth ₹860 crore were awarded, and then inflated by up to 90%, eventually reaching nearly ₹2,892 crore. A sum of ₹205 crore from this escalation was for what were termed 'richer specifications'—upgrades that had no financial justification or transparency.' Investigators further allege that although the classrooms were built as semi-permanent structures (SPS)—designed to last about 30 years—the cost per classroom averaged ₹24.86 lakh, nearly five times the market cost of ₹5 lakh per room. 'That figure is comparable to what would be expected for fully reinforced concrete (RCC) buildings with a lifespan of 75 years,' said one official. 'No justification was provided for why SPS was chosen over permanent structures if the cost was almost the same.' Another revelation that has drawn serious concern is the concealment of a report by the Chief Technical Examiner (CTE) of the CVC. The report, issued in February 2020, flagged several procurement violations and showed how amendments made after contracts were awarded contributed to massive financial losses. However, it was allegedly kept under wraps for nearly three years. The investigation was prompted by complaints filed by BJP leaders, who alleged that the AAP government manipulated costs and procedures to favour select contractors.
Hans India
01-05-2025
- Politics
- Hans India
FIR lodged against Sisodia, Jain in classroom ‘scam' case
New Delhi: The Anti-Corruption Branch (ACB) has registered a case against former Delhi Deputy Chief Minister and Education Minister Manish Sisodia, and former Public Works Department (PWD) Minister Satyendar Jain, in connection with an alleged scam in the construction of classrooms at exorbitant costs during the Aam Aadmi Party (AAP) government's tenure. According to the ACB, a massive scam worth approximately Rs 2,000 crore has been unearthed in the construction of 12,748 classrooms and school buildings. It has been alleged that semi-permanent structure (SPS) classrooms -- with a lifespan of around 30 years -- were constructed at costs comparable to reinforced cement concrete (RCC) structures, which have a 75-year lifespan. This, despite no evident financial advantage in opting for SPS. The project was reportedly awarded to 34 contractors, many of whom are allegedly associated with the AAP. Investigators claim that significant cost escalations and deviations were observed, and none of the projects were completed within the stipulated time. Consultants and architects were appointed without following due procedure, and escalated costs were facilitated through them. The Chief Technical Examiner (CTE) of the Central Vigilance Commission (CVC) had flagged numerous irregularities in a report dated February 17, 2020. However, this report remained suppressed for nearly three years. The report noted violations of several clauses of the CPWD Works Manual 2014, General Financial Rules (GFR) 2017, and CVC guidelines, particularly in post-tender decision-making, which led to inflated project costs and financial loss. Complaints from BJP leaders Harish Khurana, MLA Kapil Mishra, and Neelkanth Bakshi had alleged corruption in the construction of 12,748 classrooms at a cost of Rs 2,892 crore. The average cost of construction came to Rs 24.86 lakh per room, compared to an estimated Rs 5 lakh per room under normal conditions in Delhi. The CVC report found that the actual cost of SPS classrooms – Rs 2,292 per sq ft -- was nearly equivalent to the cost of permanent pucca structures, which ranged from Rs 2,044 to Rs 2,416 per sq ft. Richer specifications were adopted without financial justification, defeating the cost-saving purpose of SPS construction. During the financial year 2015-16, the Expenditure Finance Committee had approved the project with instructions to complete it by June 2016, without allowing any scope for cost escalation. Despite this, contract values were later increased by 17 per cent to 90 per cent, leading to an escalation of Rs 326.25 crore -- including Rs 205.45 crore attributed solely to the upgraded specifications. No fresh tenders were issued to accommodate these changes, violating CVC norms. In at least five schools, work worth Rs 42.5 crore was executed without proper tenders, using existing contracts.
Hans India
30-04-2025
- Politics
- Hans India
FIR lodged against Sisodia, Jain in classroom construction case
The Anti-Corruption Branch (ACB) has registered a case against former Delhi Deputy Chief Minister and Education Minister Manish Sisodia, and former Public Works Department (PWD) Minister Satyendar Jain, in connection with an alleged scam in the construction of classrooms at exorbitant costs during the Aam Aadmi Party (AAP) government's tenure. According to the ACB, a massive scam worth approximately Rs 2,000 crore has been unearthed in the construction of 12,748 classrooms and school buildings. It has been alleged that semi-permanent structure (SPS) classrooms -- with a lifespan of around 30 years -- were constructed at costs comparable to reinforced cement concrete (RCC) structures, which have a 75-year lifespan. This, despite no evident financial advantage in opting for SPS. The project was reportedly awarded to 34 contractors, many of whom are allegedly associated with the AAP. Investigators claim that significant cost escalations and deviations were observed, and none of the projects were completed within the stipulated time. Consultants and architects were appointed without following due procedure, and escalated costs were facilitated through them. The Chief Technical Examiner (CTE) of the Central Vigilance Commission (CVC) had flagged numerous irregularities in a report dated February 17, 2020. However, this report remained suppressed for nearly three years. The report noted violations of several clauses of the CPWD Works Manual 2014, General Financial Rules (GFR) 2017, and CVC guidelines, particularly in post-tender decision-making, which led to inflated project costs and financial loss. Complaints from BJP leaders Harish Khurana, MLA Kapil Mishra, and Neelkanth Bakshi had alleged corruption in the construction of 12,748 classrooms at a cost of Rs 2,892 crore. The average cost of construction came to Rs 24.86 lakh per room, compared to an estimated Rs 5 lakh per room under normal conditions in Delhi. The CVC report found that the actual cost of SPS classrooms – Rs 2,292 per sq ft -- was nearly equivalent to the cost of permanent pucca structures, which ranged from Rs 2,044 to Rs 2,416 per sq ft. Richer specifications were adopted without financial justification, defeating the cost-saving purpose of SPS construction. During the financial year 2015-16, the Expenditure Finance Committee had approved the project with instructions to complete it by June 2016, without allowing any scope for cost escalation. Despite this, contract values were later increased by 17 per cent to 90 per cent, leading to an escalation of Rs 326.25 crore -- including Rs 205.45 crore attributed solely to the upgraded specifications. No fresh tenders were issued to accommodate these changes, violating CVC norms. In at least five schools, work worth Rs 42.5 crore was executed without proper tenders, using existing contracts.
