CBI implicates DDA officials, raids premises | delhi | Hindustan Times
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CBI implicates DDA officials, raids premises

delhi Updated: Sep 14, 2011 23:56 IST
HT Correspondent
HT Correspondent
Hindustan Times

The CBI on Wednesday registered an FIR against 10 officials — retired and serving — of the Delhi Development Authority (DDA) and a Mumbai-based construction firm.

The Central Bureau of Investigation (CBI) has deemed them responsible for irregularities in the awarding of a Rs 154 crore contract to build an indoor badminton and squash stadium for the Commonwealth Games (CWG). The contract allegedly caused a loss of Rs 36 crore to the exchequer.

The accused DDA officials allegedly “justified” the construction of the indoor stadium, located at the Siri Fort Sports Complex in south Delhi, at an “inflated” cost of Rs 154 crore even though according to the agency’s estimation the project was worth only Rs 118 crore, said a CBI source.

“It is alleged that in the process of awarding the contract, the DDA officials justified the inflated cost of the work quoted by the firm,” said the source. “The DDA officials circumvented the situation wherein the firm had been the single bidder. The irregularities led to a loss of Rs 36 crore to the exchequer and corresponding gain to the construction firm,” the source added.

The agency’s FIR — containing charges related to criminal conspiracy and cheating under the Prevention of Corruption Act and the Indian Penal Code — mentions DDA’s retired chief engineer VK Panchal as the accused.

As part of its probe, CBI teams on Wednesday searched 21 residential and official premises belonging to the construction firm and the accused DDA officials across four states of Delhi, Uttar Pradesh, Haryana and Maharashtra.

The premises searched included 16 in Delhi, two in Mumbai, and one each in Noida, Sahibabad, and Gurgaon, which yielded “recovery of incriminating documents, including those related to assets of one of the accused DDA

HT, on March 19, had reported about the contract’s irregularities and that CBI was likely to register a case. This is the 15th FIR registered by the CBI as part of its probe into the CWG corruption scam.