ACB registers FIR against Ex-Chief Engineer, Mughal Road Project, M/s Hindustan Construction Company, others

Conferred undue benefits to HCC; huge loss to Govt exchequer

STATE TIMES NEWS
JAMMU: Jammu and Kashmir Anti Corruption Bureau has registered an FIR under Prevention of Corruption Act, on outcome of a verification into the allegations relating to award of payments in the construction of Mughal Road from Bufliaz to Shopian-Pulwama, wherein the then Chief Engineer Raman Puri purportedly admitted the claims of the company, which the department controverted. The matter involved serious financial stakes, resulting huge loss to the government exchequer
During the course of verification, it came to fore that tender was invited through Joint Commissioner Works/Chief Engineer Mughal Road Project PWD (R&B) Department on March 15, 2005 and after due procedure, the award of contract was allotted to M/s Hindustan Construction Company Ltd. for Rs 214,40,00,000 by Development Commissioner Works on the approval/ recommendation of State Contract Committee. An agreement into this effect was entered vide Agreement No. 61 PW(R&B) of 2006, dated Feb 6, 2006 wherein the date of start was March 1, 2006 and date of completion as 36 months i.e Feb 28, 2009. Thereafter, the supplementary agreement drawn on 25.01.2010 has been entered into the parties for Rs 126.64 crores, with date of completion as March 31, 2011. The extension of time was further granted with time of completion upto Feb 15, 2012. As the work was not completed upto the prescribed time-Feb 15, 2012, the company again raised the issue for grant of extension of time for delay. The matter was referred to Arbitration for settling the disputes so raised.
The verification conducted further revealed that Chief Engineer Raman Puri used to interact/meet with representatives of M/s Hindustan Construction Company Ltd outside his office without following the codal procedure with an intention to extract undue benefit. The then Chief Engineer in connivance with M/s Hindustan Construction Company Ltd. taking undue advantage of prior escalation clause, signed a letter on the letter head of construction company, agreeing to the mutual conditions including accepting of prior escalation for the period w.e.f Feb 15, 2012 to March 31, .2012, which resulted in the arbitration award of Rs 21.52 crore plus Rs 11.27 crore in favour of Hindustan Construction Company and corresponding loss to the government exchequer.
By acting in this manner, the then Chief Engineer, Mughal Road Project PWD (R&B) Department namely Raman Puri, by abuse of his official position and in lieu of criminal conspiracy with beneficiary company, exceeded his powers/competence and accepted the terms and conditions of Contractor M/s Hindustan Construction Company Ltd which formed the basis of award by Arbitration tribunal dated March 28, 2019, thereby conferred undue benefit to the company with extension of time for which no prior order/communication stands issued, besides prevented imposition of liquidation of damages to the tune of Rs 54.00 Crore on company for its in-ability to complete the project in stipulated time etc.
The aforementioned facts constitute commission of offences punishable under section 5(1) (d) r/w Section 5 (2) of J&K PC Act Svt 2006 & section 120-B of RPC against Raman Puri, then Chief Engineer, Mughal Road Project, PWD (R&B) Department R/o Trikuta Nagar Jammu, beneficiary company M/s Hindustan Construction Company Ltd. and others. Consequently FIR 23/2024 has been registered in P/S ACB Srinagar. Further investigation in the case is going on.