Case lodged against construction companies, 2 retired VIDC officials

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The offences registered on Tuesday against Nisar Khatri of FA constructions, Mumbai, his four family members, retired VIDC chief engineer Sopan Suryavanshi (65), and retired executive engineer Ramesh Wardhane (58), were in the case of alleged fraud committed by the offenders in tandem with each other in the earthwork at Ghodazari Canal of Gosikhurd project in Chandrapur district, according to a press note issued by the ACB.

This is the first registration of offence in the irrigation scam in Vidarbha.

“The firm in question has already been paid Rs 143 crore, which is 70 pc of its total bill,” Deputy Superintendent of Police (ACB) Milind Totre told The Indian Express, adding, “the original contract was for Rs 101 crore but cost escalation led to inflation of the bill amount.”

The other four family members booked in the case are Fateh Khatri, Jaitun Khatri, Abid Khatri and Jahid Khatri.

“Inquiry conducted by police inspector Yuvraj Patki has revealed that the accused persons belonging to the construction company had committed fraud by floating fake companies to enter the biding process to win the contract for the earthwork for the canal kilometres between 42.6 and 88 km marks. The two VIDC officials were found to have allowed the fraud to be committed despite being aware of it,” said the press note.

The ACB has applied various sections of the Prevention of Corruption Act and the Indian Penal Code against the accused.

“VIDC had called bids for the work in 2006. Four firms were shown to have participated in the bid with the contract being awarded finally to FA constructions. It was found that the company had prepared fake documents in the name of Shraddha Construction and Power Generation Company Pvt Ltd and had submitted bid also in the latter’s name in the process turning the whole bidding process opaque. The firm’s partners also presented fake documents of work experience. This amounted to forming a cartel with criminal intent of defrauding VIDC and in turn the state government,” the press note added.

“The two VIDC officials misused their positions to facilitate the award of contract to FA constructions. They held the documents in Shraddha constructions name valid despite being aware of their being fake. They allowed Sharddha Construction to participate despite scoring 122 points in evaluation as against the minimum required 140 points to show that the biding was competitive,” the press note added. The ACB sleuths are carrying out searches at the residences of all accused and further investigation is being handled by Milind Totre.

Name of the third company in the bidding process was not mentioned in the press note. “Verification in case of the third company is still underway and hence its name hasn’t been mentioned,” Totre said.