Scandalous Activities of IRCON Officers, Part-1

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In fact, there was no such theft or pilferage and payment shown was the money embezzled and misappropriated with dishonest intention of causing wrongful loss to the exchequer both in India and Bangladesh?

Question arises how this agency managed to pay border taxes in Bangladesh which was in his scope of payment. Further, there was no debit of a single farthing from IRCON’s account to show that IRCON had made any payment on behalf of Contractor for border taxes or #Freight in Bangladesh?

In continuation to news of #Railwhispers, “Stink from #Northeast Frontier, Part-1” and “Stink from #Northeast Frontier, Part-2” – 26 & 27 Sept 2024; and “Stink from Railway PSUs” – Oct. 29 – source of stink is from office of an #ED who is an #IRSE officer on deputation to #IRCON. It can be established that this ED is real culprit for #Tender manipulation in Agartala-Akhaura project in Northeast Frontier Railway and in Khulna-Mongla project in Bangladesh.

This #ED of #IRCON had his accomplices in Agartala-Akhaura Project and at Khulna-Mongla project. Both are blue eyed boys and worked in connivance with this ED. Which #Contractors are to be favored and which are to be banished and manner to be punished was dictated by this ED. While he has some allegedly #partner contractos in these projects, he devastated Deepak Enterprise, Conrach Associates and Ganpati Industries.

Let us have a closer look at #corrupt practices, unfair means, and illegal activities of this ED-

A #litigation in #Bihar was pending against this ED. He was coordinator of Projects in Bihar, taking the advantage of his position he has attended the Court hearing of his #Munger case on official expenses. Not taking any leave from IRCON and not showing Court appearance in his Tour approvals, he claimed all his personal expenses from IRCON and earned Daily allowances, saved on Travel Tickets and Hotel stay. Every tour costed IRCON approximately ₹50,000. He did not made disclosure about the all litigations pending against in his name while making official tours on any occasion while serving IRCON. He attended the court proceedings by misusing his position for travelling from #Patna to #Munger at the cost of #IRCON and thus committed serious misconduct as well as the offence of #criminal misappropriation and falsification of accounts. Details of cases are shown below-

  • Confiscation Case no. 09/2003-04 in the court of District Collector Munger filed by DFO/Munger against Sr.DEN-II.
  • Complaint case no. 17/C3/2003 in the court of SDJM filed against this officers & OR’s. This case is of Illegal #Procurement for 18,00,000 CFT approx of #ballast/boulder of Forest Area which are against the provisions of relevant State Laws which are cited in Letter No. D. O. No. 2003/CE-II/MB.3 dated 18.11.2003 and as such make the offence against this ED extremely serious and beyond condonation.

There is another instance of the indulgence of this ED in tender manipulation and malpractices, misappropriation of public fund and falsification of accounts-

  • The instance is of allotting work order of supply of #ballast to M/s XXX who is allegedly partner of this ED. He was awarded work of Supply of Ballast via road transport for which necessarily royalty was to be paid on presentation of road supply challan. But a false record was made showing the payment of #royalty towards railways rakes. This ED cleared all payments on these forged royalty challans.
  • M/s XYZ was awarded another Work of Ballast Supply on single Tender basis by this ED when he was project Head of Khulna-Mongla Project (#Bangladesh). This supply could have been taken from running contract of Conarch Associates whose contract was not yet closed. ED while stationed in New Delhi he awarded work in Bangladesh to this Indian Contractor as Project Head in Bangladesh as he has many times more financial power in Foreign land.
  • Single tender was awarded while there were 4 other suppliers who earlier supplied Ballast in Bangladesh on same project and many more parties interested to supply. Further the rate offered to M/s XYZ @USD 72 per cum was excessive in contrast to existing supply rates in this project of Khulna-Mongla. Work awarded vide LOA no. IRCON/9043/BD.KHU-MON/Tender/Ballast/ 7437 Dt. 10 Jan 2024 for 10000 cum with addition of 35% variation.

Contractors allege that this ED is sleeping partner of M/s XYZ and helped him in carrying out #Hawala transfer of money from India to Bangladesh leading to huge forex losses to India. The #Contractor in connivance with the ED forged and fabricated border taxes challans which is paid in Bangladesh on Export of material from India. Thus showing the forged border taxes payment receipts to IRCON Contrctor enjoyed on public money. M/s XYZ is not registered company in Bangladesh and does not have Bank account in Bangladesh due to which he cannot make payment towards border taxes. Question arises how this agency managed to pay border taxes in Bangladesh which was in his scope of payment? Further, there was no debit of a single farthing from IRCON’s account to show that IRCON had made any payment on behalf of Contractor for border taxes or #Freight in Bangladesh?

In fact, it is understood that the payments were made by the contractor through “HAWALA Transaction” in Bangladesh. Thus, it is a clear case of #Money laundering and also #violation of #FERA. All supplies made between April 2012 to Dec 2021 has same lines of operation through Hawala transaction. (Reference; LOA No. IRCON/9043/ BD. KHU-MON/Tender/Ballast/505/4995, Dt. 21.4.2021 and LOA no. IRCON/ 9043/BD.KHU-MON/Tender/Ballast /511/5192, Dt. 26.02.2021).

  • This ED did not allow #Finance Department to seek valid proof of Money transaction from M/s XYZ or make deduction when matter was highlighted by another Contractor.
  • Question is always there that whether there was any supply or mere false record on books of accounts as there is no royalty challan for road supply, no identified money source of border tax payments. Corroboration can be made since huge deductions in quantities of other #suppliers like #Deepak enterprise, #Conarch Associates and #United Traders were made on pretext of #Quality and may be were adjusted in bills of M/s. XYZ.
  • Ballast transportation done in Bangladesh in project stretch made by Conarch Associates in his contract of Ballast supply was deducted from his Final Bill and was shown to be transported by M/s. XYZ.
  • M/s. XYZ is having no prior credential before coming to IRCON as contractor all credits to this ED. Similar is case of another contractor in Agartala project, where contractor had no prior experience. Both Contracts were accepted by this ED.

#IRCON awarded work of #TrackLinking to M/s. YYY Pvt Ltd. Who was required to procure fittings for track linking from India (LOA no. IRCON/9043/BD.KHU-MON/P.Way Fittings & Linkings/12 dated 19.12.2018. Heavy amount of money running into 4 to 5 crores was paid on the false and specious pretext of the procuring rail fitting material and its pilferage by unknown thieves or person. In fact, there was no such theft or pilferage and payment shown was the money embezzled and misappropriated with dishonest intention of causing wrongful loss to the exchequer both in India and Bangladesh.

  • Not only the above the IRCON compounded the situation of unnecessary expenditure by pleading that they had hired a Bangladeshi #security agent for keeping a vigil to avoid further theft of construction materials. The expenditure of hiring the security agent was also borne by IRCON and that was in fact yet another instance of contrived embezzlement between IRCON and M/s YYY Pvt Ltd.
  • IRCON provided all Track Machinery to M/s YYY for work and bare minimum or no hiring charges are recovered from him. This Money gets into pocket of ED and his lead in Khulna-Mongla project.
  • Investigation into Contracts of M/s YYY can open the #Pandora of #Corruption done by ED and his men.

Contd. in Part 2: (As case is with central agencies, we have blanked names of officers and beneficiaries in private sector)