FIR against unknown persons for embezzling ₹20cr from Delhi Jal Board

A private agency contracted by Corporation Bank to collect water bills for DJB was mandated to deposit the money directly into the DJB’s bank account, but instead, the money was transferred to a private account

The anti-corruption branch (ACB) on Saturday filed an FIR against unidentified individuals in connection with the alleged embezzlement of around ₹20 crore from the Delhi Jal Board (DJB), officials aware of the development said.

At the Delhi Jal Board office. (Sushil Kumar, HT Photo)

The ACB said they would probe the role of DJB officials and other private individuals in the alleged fraud, which happened between 2012 and 2019.

Explaining the case details, ACB officials said DJB in June 2012 appointed Corporation Bank to collect water bills on its behalf for a period of three years. The bank further engaged a private agency to set up kiosks and collect bills from different locations in the city. The contract was renewed periodically till October 2019, when the fraud was detected.

The ACB said the private agency was mandated to deposit the money directly into the DJB’s bank account, but instead, the money was transferred to a private account, which was in violation of the contract.

“In many cases, the cash collected was deposited to a private account. The money was then transferred to different accounts via online transfers by the private account holder, and not the DJB bank account. As per Reserve Bank of India guidelines, the bank should report the fraud to Central Bureau of Investigation (CBI) if the amount is more than ₹3 crore. In this case, the embezzlement was to the tune of ₹20 crore. Facts on record showed that the bank was reluctant to initiate any action against the private agency or DJB officials linked to the fraud. We will probe the role of private individuals, bank officials, and DJB officials,” said ACB chief Madhur Verma

In September, Delhi lieutenant governor VK Saxena had directed chief secretary Naresh Kumar to inquire into the matter and file an FIR.

The vigilance department of the DJB, too, said a preliminary probe has established that funds were embezzled.

On September 23, after Saxena directed the chief secretary to probe the matter, the Aam Aadmi Party (AAP) in a statement welcomed the probe and said the irregularities were first referred to the L-G by deputy chief minister Manish Sisodia. The DJB comes under the administrative jurisdiction of the AAP-led Delhi government.

Back then, AAP chief spokesperson and DJB vice-chairman Saurabh Bharadwaj said the matter pertained to the period from 2012 and the allegations mentioned a connivance of a central bank officials and DJB officials. “We welcome all such investigations. Jal board’s chief executive officer had informed deputy CM and DJB chairperson Manish Sisodia about this matter and he had made this recommendation (to the LG) for an investigation. Strict action should be taken against the bank officials well as DJB officials found guilty of embezzling funds,” he said.