Financial irregularities: HC puts Punjab, PunCom MD, board of directors on notice

The high court court has sought their responses on the employees’ union’s petition regarding glaring irregularities and gross misuse of money at PunCom, as revealed by an audit in November last year

Acting on a petition by the PunCom Employees’ Union, the Punjab and Haryana high court has issued notices to the Punjab government, and PunCom’s managing director and board of directors for January 17 next year.

Last year, an audit by the office of the Punjab principal accountant general had pointed out losses worth several crores at PunCom. (HT)

The court has sought their responses on the union’s petition regarding glaring irregularities and gross misuse of money, as revealed by an audit in November last year.

Set up in 1981, PunCom (Punjab Communication Limited) is a premier telecom and IT equipment company, supplying and implementing a host of state-of-the-art telecommunications software and integrated solutions.

Last year, an audit by the office of the Punjab principal accountant general had pointed out losses worth several crores.

The audit report for 2019-2020 had found irregular payments worth ₹95 lakh in the form of retention allowance to employees under the superannuation scheme. The audit also highlighted an erring litigation that cost the company around ₹111 crore.

PunCom, the audit report noted, floated Punjab Digital Industrial Limited, Mohali, as its subsidiary, through an investment of ₹25 lakh. This company wound up in February 2009 and the accumulated losses of the firm were around ₹1 crore.

The report said PunCom failed to properly apply and execute work for the railways, leading to forfeiture of the ₹40-lakh deposit.

The company ignored Punjab government orders to limit gratuity payment to ₹10 lakh and also gave undue benefits to three fresh recruits.

It also came under lens for its inability to collect ₹26 crore from its debtors.