J&K ACB Unearths Multi-Crore Mughal Road Scam

Date:

Books Former Chief Engineer, HCC in the Scandal

FARHAN BUKHARI

SRINAGAR, Nov 12: In a high-stakes crackdown on alleged corruption, the Jammu and Kashmir Anti-Corruption Bureau (ACB) has registered a case against former Chief Engineer Raman Puri, who helmed the Mughal Road Project under the Public Works Department (PWD), along with beneficiary company M/s Hindustan Construction Company Ltd. and other unnamed individuals.

The case, filed under the stringent Prevention of Corruption Act, followed an exhaustive investigation by the ACB, which uncovered serious allegations involving dubious payments and financial discrepancies in the construction of the vital Mughal Road connecting Bufliaz to Shopian-Pulwama. According to sources, the misconduct of officials and contractors has inflicted colossal financial losses on the state exchequer, raising red flags over accountability and transparency within major public projects.

The ACB investigation revealed that the tender for the Mughal Road project was initially floated on March 15, 2005, under the supervision of the Joint Commissioner Works/Chief Engineer, with the project eventually awarded to M/s Hindustan Construction Company Ltd. for a massive sum of Rs 214.4 crore. Following a state-sanctioned approval from the State Contract Committee, a formal agreement (No. 61 PW(R&B) of 2006) was signed on February 6, 2006, with an initial timeline for completion set for February 28, 2009. However, despite repeated extensions, the project remained incomplete even beyond the extended deadline of February 15, 2012.

During this period, the cost soared, and a supplementary agreement further inflated the budget by Rs 126.64 crore, pushing the new completion target to March 31, 2011.

What raises suspicion is the clandestine manner in which Puri, then Chief Engineer, reportedly dealt with company representatives from Hindustan Construction. Investigation sources indicate Puri engaged with these representatives outside official premises, skirting established protocol. Allegedly, these informal meetings were aimed at extracting unauthorized financial benefits. In one particularly incriminating incident, Puri allegedly signed a letter on the company’s letterhead, accepting mutual conditions that granted the construction firm undue advantages.

This agreement included an escalated compensation clause covering February to December 2012, leading to a substantial arbitration award of Rs 21.52 crore plus an additional Rs 11.27 crore in favor of Hindustan Construction.

The arbitral decision, dated March 28, 2019, reportedly stemmed from this agreement, with Puri’s actions resulting in further penalties for the government while waiving any liquidated damages that could have been levied against the firm. According to ACB sources, the mismanagement and unauthorized concessions in the contract, without the necessary approvals, meant that the state lost approximately Rs 54 crore due to waived penalties and extended deadlines, all of which have now come under intense scrutiny.

This development has sparked discussions about the extent of corruption within large-scale infrastructure projects, where state funds and public trust are at stake. Under section 5(1)(d) read with section 5(2) of the Jammu & Kashmir Prevention of Corruption Act, 2006, and section 120-B of the Ranbir Penal Code (RPC), FIR No. 23/2024 has been registered at the Anti-Corruption Bureau (ACB) station in Srinagar. Sources reveal that Puri, a resident of Trikuta Nagar, Jammu, along with M/s Hindustan Construction Company Ltd., are facing serious charges of conspiracy, abuse of power, and fraud to benefit private entities at the expense of state resources.

The case, which is still under investigation, highlights the complex web of influence and misconduct in public projects and has raised demands for more stringent oversight on contract awards and project management. Investigative sources confirm that more revelations may come to light as the probe intensifies, with accountability measures likely to follow against all parties involved in the alleged scheme.

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