ACB registers case against CE Mughal Road Project, HCCL

Excelsior Correspondent

JAMMU, Nov 12: Jammu and Kashmir Anti-Corruption Bureau has registered a case against Raman Puri, then Chief Engineer, Mughal Road Project, PWD (R&B) Department, beneficiary company M/s Hindustan Construction Company Ltd and others.
The case under Prevention of Corruption Act has been registered on outcome of a verification conducted by ACB into the allegations relating to award of payments in the construction of Mughal Road from Bufliaz to Shopian-Pulwama, wherein the Chief Engineer 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 after tender on 15.03.2005, the award of contract was allotted to M/s Hindustan Construction Company Ltd for Rs 214,40,00,000 and an agreement into this effect was entered, according to which the date of start of work was 01.03.2006 and date of completion as 36 months i.e 28.02.2009. Thereafter, the supplementary agreement drawn on 25.01.2010 was entered into the parties for Rs 126.64 crores, with date of completion as 31.03.2011. The extension of time was further granted with time of completion upto 15-02-2012.

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As the work was not completed upto the prescribed time i.e 15.02.2012, 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 revealed that then Chief Engineer Raman Puri, 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 15.02.2012 to 31.12.2012, which resulted in the arbitration award of Rs 21.52 crore plus Rs 11.27 crore in favour of HCCL and corresponding loss to the Government exchequer.
By acting in this manner, Chief Engineer 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 company which formed the basis of award by Arbitration tribunal dated 28.03.2019, thereby conferred undue benefit to the company with extension of time for which no prior order/communication was issued, besides prevented imposition of liquidation of damages to the tune of Rs 54.00 crore on the company for its in-ability to complete the project in stipulated time etc.
Consequently a case FIR No. 23/2024 has been registered in this connection in Police Station ACB Srinagar. Further investigation in the case is going on.