Decade old case comes back to haunt former Punjab Power Corporation CMD KD Chaudhary
At the heart of the investigation is a 66 KV substation in Ludhiana’s Basant Avenue, constructed between 2011 and 2015.
The complaint states that the proposal for the 66 KV substation at Basant Avenue was prepared and approved despite serious violations of PSPCL guidelines. (Express Photo by Gurmeet Singh) A decade-old case related to the installation of a substation of the Punjab State Power Corporation Limited (PSPCL) in Ludhiana’s Basant Avenue has resurfaced, leading to the arrest of former CMD K D Chaudhary by the Vigilance Bureau in a case under the Prevention of Corruption Act.
Chaudhary, who retired in March 2017, was named in an FIR registered on April 25, 2026. The alleged irregularities date back to 2011–2015, when Chaudhary served as CMD. He is accused of “colluding” with builder Amit Garg, director of Damini Resorts and Builders Private Limited, to set up the substation “deep inside agricultural fields instead of within the colony, allegedly to benefit the builder.”
The FIR, a copy of which is with The Indian Express, has been lodged under relevant sections of the Prevention of Corruption Act and the Indian Penal Code. It also names Sanjeev Prabhakar, then XEN and now retired, along with Amit Garg.
What the FIR says
The complaint states that the proposal for the 66 KV substation at Basant Avenue was prepared and approved despite serious violations of PSPCL guidelines.
The substation was allegedly set up deep inside agricultural fields, nearly three kilometres from the nearest road and away from the residential colonies it was meant to serve, instead of being located closer to the load centres. No pucca approach road was provided, making access difficult.
The FIR states that had proper site selection been carried out at the time, the colonies could have borne the cost. It further alleges that the load of all nearby colonies was not calculated, and had this been done, the burden on the exchequer could have been shifted to the colonisers.
Officials are accused of ignoring site inspection requirements, failing to follow planning and monitoring guidelines, and overlooking senior officers’ notings, leading to the approval and commissioning of the substation at an unsuitable location.
The document highlights that, despite representations and available alternatives, the proposal was pushed through, allegedly resulting in undue favouritism and a loss to the public exchequer. It points to specific lapses, including failure to adhere to guidelines for 66 KV substations and not conducting the necessary verifications. While the FIR does not specify the exact financial loss, PSPCL sources estimate that setting up a 66 KV grid costs between Rs 7 crore and Rs 8 crore.
The FIR also notes that the grid was set up on an area measuring 1,015 square yards. PSPCL sources said that, as per guidelines, a grid is usually set up on one acre (about 4,000 square yards), keeping future expansion in mind.
‘Association’ with Congress, Alkalis
Chaudhary became the first CMD of PSPCL after the unbundling of the Punjab State Electricity Board in June 2010 during the SAD-BJP regime. He was considered close to former Chief Minister Parkash Singh Badal.
In 2012, ahead of the Punjab Assembly election results, when the Congress led by Captain Amarinder Singh was confident of forming the government, Chaudhary was seen at the leader’s residence, reportedly upsetting sections of the Akali leadership.
However, he retained his position during the Akalis’ second term as well and was later considered close to the power minister, Sukhbir Singh Badal.
At the time, the retirement age for the PSPCL CMD was 62 years. Chaudhary turned 62 in 2014, after which the government relaxed the upper age limit by two years. When he turned 64 in February 2016, the upper age limit was extended once again to 65 years. By the time he turned 65 in February 2017, Assembly elections had taken place. The Congress government led by Amarinder Singh came to power in March 2017, following which Chaudhary retired the same month.
Chaudhary was regarded as a capable technocrat with strong domain knowledge. However, he had also courted controversy when one lakh agricultural pump-set power connections were granted to farmers under Chairman’s Quota Connections, ahead of the 2017 Assembly elections, despite declining groundwater levels.
He also oversaw the commissioning of three private thermal power plants, during which Punjab moved from a power-deficient state to a surplus power state.
‘Targeted attack’
The PSEB Engineers’ Association has openly backed the senior technocrat, questioning the manner of the probe and demanding a fair judicial inquiry.
In a letter to Chief Minister Bhagwant Mann Thursday, the Association expressed deep anguish over what it termed “targeted action” against senior technocrats. The letter, signed by General Secretary Ajay Pal Singh Atwal, stated that while the body has always stood for integrity and never supported corruption, the arbitrary arrest of a retired officer appeared motivated.
“The FIR is highly vague and open-ended, demonstrating that it is completely biased and lodged with some other motive. Such actions have created fear, uncertainty and demoralisation among officers working in the power sector,” the letter stated.
The Association pointed out that Chaudhary had retired nine years ago and all records related to the case were already available with the Vigilance Department. It questioned the need for custodial interrogation at this stage and criticised the bureau for not filing a chargesheet despite having the complaint for years.
Terming the developments a “targeted attack” that could adversely affect independent decision-making in power utilities, the engineers demanded that the matter be entrusted to a sitting or retired senior judge of the Punjab and Haryana High Court for an independent inquiry.
Share
