The Noida authority on Thursday said that it has stopped payment of around Rs25 crore to Ghaziabad-based private firm NKG Infrastructure, which was named by the Central Bureau of Investigation (CBI) in a corruption case pertaining to former Noida chief engineer Yadav Singh.
The CBI had arrested Yadav Singh in February this year following the arrest of his aide Ramendra Singh, the suspended project engineer of the Noida authority, in December 2015. Both are under judicial custody at Dasna jail in Ghaziabad. Yadav Singh is charged with criminal conspiracy, cheating and forgery under the IPC. He is also accused of abusing his official position and bribery under the Prevention of Corruption Act.
Apart from Yadav Singh, Ramendra Singh and others, the CBI chargesheet also names NKG Infrastructure and its managing director Pradeep Garg.
“We have stopped payment to this private firm because it is facing charges of corruption by the CBI. The authority will release payments once the firm is cleared of charges,” said Manmohan Mishra, financial controller of the Noida authority.
Earlier in February, the authority had thought of blacklisting the firm after it was named in CBI’s chargesheet. However, that did not happen as the firm hasn’t been convicted of any wrongdoing yet.
“We have not blacklisted the firm. The payment stopped pertains to work related to shifting of electricity cables and laying power cables etc. in Noida. However, the authority has released the payment related to civil works,” said Mishra.
Blacklisting by the authority would have meant that NKG would no longer get any government projects in Noida.
According to Noida authority officials, NKG Infrastructure was in 2013-14 allotted important projects including building the Rs450-crore eight-lane bridge parallel to Kalindi Kunj Bridge across Yamuna. In 2014, the firm also got a project of Rs30-Rs40 crore for installation of crash barriers on the Noida expressway.
In the 2015-16 financial year, when the CBI probe was underway, the authority gave NKG two underpass projects – one at Sector 60 and another at Sector 24/33. They were together worth around Rs100 crore.