Lokayukta recommends prosecution of former RNN MD

Lokayukta NK Mehrotra on Monday recommended prosecution of CP Singh,former managing director of state government’s agency Rajkiya Nirman Nigam (RNN),under Prevention of Corruption Act for allegedly sub-contracting the construction works of various government projects worth Rs 858.95 crore in violation of rules during the previous government.

Written by Express News Service | Lucknow | Published: July 2, 2013 4:05 am

Lokayukta NK Mehrotra on Monday recommended prosecution of CP Singh,former managing director of state government’s agency Rajkiya Nirman Nigam (RNN),under Prevention of Corruption Act for allegedly sub-contracting the construction works of various government projects worth Rs 858.95 crore in violation of rules during the previous government.

In his report sent to Chief Minister Akhilesh Yadav and Chief Secretary Jawed Usmani,Mehrotra has recommended that the government should order the prosecution of Singh under Prevention of Corruption Act by an investigating agency,an inquiry be conducted into his income and assets acquired between 2007 and 2012,and the assets,if found disproportionate to his source of income in the inquiry,should be confiscated by the government. The Lokayukta has sought the action taken report (ATR) from the government within three months.

The complaint against Singh was filed by Lucknow-based lawyer Arunendra Mohan Shukla,who had alleged that various construction works allotted to RNN by the state government were given to other construction companies by the agency,many without even inviting tenders. The complainant had also accused Singh of acquiring various properties in Lucknow,Delhi and Mumbai during his tenure.

The Lokayukta said he found that in the allottment of projects worth Rs 858.95 crore between 2008 and 2010,there was a loss of about 25 per cent of total cost to the state exchequer because of delayed completion of projects,several revisions of the projects’ costs and lending of advance to the construction firms without any agreement for the loan.

Mehrotra said out of RNN’s 16 projects which he probed,as many as five — whose total cost was Rs 101.8 crore — were awarded to other construction firms without inviting any tenders. He said as many as five works of Rs 274.34 crore were given to construction firms by issuing tenders against specifications mandated by the Public Works Department (PWD).

Mehrotra said the construction projects which were probed included the construction of Manyavar Kanshi Ram Eco Park in Lucknow,UP Bhawan in Mumbai and medical colleges in Saharanpur and Ambedkar Nagar districts.

According to Lokayukta,Omaxe Infrastructure Pvt Ltd,which was given the work for construction of medical college in Saharanpur,was given an advance money of Rs 1.68 crore by the RNN,and another firm JN Infra Project Ltd,which was given the work of constructing medical college in Ambedkar Nagar,was given advance of Rs 2.25 crore,while there was no such provision in their agreements.

Mehrotra said he was also informed that the file pertaining to work allottment for construction of medical college in Saharanpur was also missing and the work has still not been completed. He said the construction of medical college in Ambedkar Nagar has also not been completed and the contractor has abandoned the project.

The officials in Lokayukta office said that Singh had claimed that no loss or profit occurred because of the process adopted during his tenure. The Lokayukta has also recommended disciplinary action against RNN engineers AK Pandey,AK Gautam and Shailendra Pratap Singh for their involvement in the projects.

Mehrotra said he has also asked the government to consider if it was reasonable to pay 12 per cent charges to RNN while it sub-contracts the work to other firms. He said that though he did not conduct an inquiry into Singh’s assets,he has recommended the government to conduct the inquiry.

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