ACB unearths fraud case at Khrew Industrial Estate; files case against SICOP Manager

2 September 2024

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Srinagar, Sept 2: A Joint Surprise Check (JSC) was conducted by the J&K Anti Corruption Bureau (ACB) into allegations that work for the construction of a U-shaped RCC drain at Industrial Estate Khrew was illegally allotted by the Estates Manager, SICOP, to M/S URW at a cost of ₹108 lakh and was further extended by adding a large quantum of work amounting to ₹263 lakh in violation of the laid-down procedures.

The probe conducted during the JSC revealed that the work for the construction of the U-shaped RCC drain at Industrial Estate, Khrew, was indeed illegally allotted by the Estates Manager, SICOP, to M/S URW at a cost of ₹108 lakhs, and was subsequently extended by adding a large amount of additional work, totaling ₹263 lakhs, without following the proper procedures.

The investigation further uncovered that the Project Manager (Executive Engineer) SICOP, Kashmir, issued an offline NIT (No. 6-SICOP of 2019 dated 11.11.2019) inviting bids from Class ‘A’ and Class ‘B’ Contractors for the execution of work related to the construction of the U-shaped RCC drain at Industrial Estate Khrew, with an advertised cost of ₹99 lakh, which violated SRO-196 of 2011. Four bids were received, three from Class A Contractors and one from a Class B Contractor. Despite the ineligibility of the Class B Contractor, the work was allotted to M/S URW for ₹107 lakh.

It was also found that, as per SRO-196 of 2011, the Class ‘B’ Contractor was eligible only for contracts up to ₹50 lakh. The SRO makes it clear that only Class ‘A’ Contractors were eligible for the work at Industrial Estate Khrew, which had an advertised cost of ₹99 lakh and an allotment value of ₹107 lakh. The Project Manager not only facilitated the illegal allotment to M/S URW but also granted significant extensions amounting to ₹2,69,57,658/- beyond the allotted cost of ₹107 lakh.

In this manner, the Project Manager, under a well-knit conspiracy with the proprietor of M/S URW, in exchange for pecuniary benefits, dishonestly and fraudulently abused his official position. He first invited the participation of Class B Contractors in the aforementioned NIT in violation of prevailing norms to facilitate the participation of the beneficiary Class ‘B’ Contractor in the bidding process, allotted the work in his favor despite his ineligibility, and subsequently favored him with substantial extensions beyond the scope of the original allotment, thereby conferring undue benefit upon himself and the beneficiary.

These actions by the Project Manager, SICOP Kashmir, and the beneficiary proprietor of M/S URW constitute offenses punishable under Section 7 of the Prevention of Corruption Act 1988 and Section 120-B of the IPC.

As a result, FIR No. 05/2024 has been registered at the Police Station ACB Anantnag, and the investigation is underway. Following the registration of the case, a search warrant was obtained from the Special Judge of the Anti-Corruption Court Pulwama, and searches were conducted simultaneously at multiple locations, including the residential houses of the accused and the accused beneficiary proprietor of M/S URW. During these searches, some incriminating documents relevant to the case were found and seized.

Further investigation into the case is ongoing.

As a policy, Ziraat Times does not reveal the full identity of the accused until investigations are completed.