New Delhi: Hindustan Steelworks Construction Limited (HSCL), a subsidiary of NBCC (India) Limited, has come under scrutiny following a media report alleging financial irregularities amounting to Rs 23.31 crore in road construction projects under the Pradhan Mantri Gram Sadak Yojana (PMGSY) in Tripura.
According to a report, an audit team and an enquiry committee constituted by the Tripura Rural Roads Development Agency (TRRDA), PWD (PMGSY), reportedly identified excess payments of Rs 23.31 crore in connection with alleged inflated measurements and works that were stated to have not been executed.
The report claims that the findings were communicated to HSCL management on multiple occasions. However, it raises questions over the action reportedly taken by the company following these findings.
The report names Sanjay Kumar Thakur, a former Zonal Head at Bokaro, in connection with the alleged irregularities. It states that HSCL subsequently constituted a Fact-Finding Committee (FFC) to examine the matter after his retirement.
The report has also raised questions over the committee's functioning and the involvement of S. S. Packiaraj, a former HSCL employee who retired as General Manager (Finance) on March 31, 2022, and was subsequently appointed Advisor (Finance). According to the report, Packiaraj visited the zone, interacted with officials and collected documents to assist the committee, although he was reportedly not a member of it.
The report further alleges that certain observations of the Fact-Finding Committee diluted the reported lapses. However, the committee's findings and the circumstances surrounding its functioning could not be independently verified.
Separately, the report refers to an alleged sales tax misappropriation matter involving Packiaraj at HSCL's Bokaro unit during 2016-17. It cites an FIR reportedly registered by the Commercial Tax Department under FIR No. 55/26 under Sections 406, 420 and 120(B) of the IPC.
Questions have also been raised in the report over the release of retirement benefits to the two former officials and Packiaraj's subsequent contractual appointment as Financial Advisor, despite the reported allegations and proceedings.
The developments have brought attention to issues concerning financial oversight, internal controls and accountability in the execution of government-funded infrastructure projects.
The allegations and findings mentioned in the report have not been independently verified by PSU Watch. No official response from HSCL or its parent company, NBCC (India) Limited, was available at the time of publication. The company has not yet been heard on the allegations, the reported audit findings, the Fact-Finding Committee's proceedings or the subsequent appointments and administrative decisions.
The allegations do not, by themselves, establish wrongdoing by the company or the individuals named. Their responses and the outcome of any relevant investigation or legal proceedings would be necessary to establish the facts and determine accountability.
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