The Delhi government’s anti-corruption branch (ACB) has arrested a suspended executive engineer and a private contractor for defrauding the Irrigation and Flood Control (I&FC) Department of Rs 4.6 crore fraud, an official said on Monday.
The two accused allegedly facilitated fraudulent payments worth over Rs 4.6 crore for civil works that were never executed.
The irregularities relate to drainage and road projects in a north Delhi village, Siraspur, which were found to exist only on paper.
“The arrested individuals include an executive engineer of the I&FC Department who was under suspension, and a private contractor. Their arrest follows a detailed probe into the embezzlement of public funds through fictitious projects and procedural violations,” the officer said.
The alleged fraud came to light during an internal inquiry that spotlighted large-scale irregularities in payments made to certain contractors without physical verification of works.
Acting on the findings, the ACB launched a full-fledged investigation.
The initial scrutiny revealed that public funds amounting to over Rs 4.6 crore were released for the construction of reinforced cement concrete drains and roads in Siraspur village.
However, on-ground inspection and technical verification found no trace of the proposed civil works.
Investigators uncovered that fake performance bank guarantees amounting to Rs 2.24 crore were submitted by the contractor and were accepted by the department without cross verification.
“The acceptance of forged performance guarantees is a grave violation of procurement norms. It is a clear indication of collusion and gross negligence on part of the officials involved,” the ACB official added.
The probe also found multiple violations of the Central Public Works Department Works Manual, General Financial Rules -2005, and guidelines laid down by the Central Vigilance Commission.
