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DHFCL scam: Trail of trickery started on March 17, 2017
The first investment that the UP Power Corporation Ltd (UPPCL) made in the controversial, unsecured Deewan Housing Finance Corporation Ltd (DHFCL) in gross violations
The first investment that the UP Power Corporation Ltd (UPPCL) made in the controversial, unsecured Deewan Housing Finance Corporation Ltd (DHFCL) in gross violations of the central government’s guidelines was on March 17, 2017 — two days before Yogi Adityanath was sworn in as the state’s chief minister.
This was a transitional period after the then ruling party had lost and the BJP was yet to take the reins.
In December, 2016 the UPPCL decided to invest the Power Sector Employees’ Trust money in banking institutions, if safe options, including private firms, were available, changing the earlier order under which up to 5% investment could be made in the scheduled financial institutions only.
According to principal secretary, energy and UPPCL chairman Alok Kumar, the first investment under the changed guidelines was made in the PNB Housing Finance Corporation in December 2016. “But the first investment in the DHFCL was made on March 17, 2017 and then the investment continued,” he said.
Kumar said 99% of the trust’s money was invested in three housing companies, of which 65% of the money was invested in DHFCL alone, in violation of the central government’s guidelines without an approval from the top officials.
He said he had received an unnamed complaint on July 10, 2019 about the investments against the provisions, after which he set up an inquiry and, based on the findings, then trust secretary Praveen Gupta was suspended two weeks ago.
Sources said the meeting of the trust’s board of directors was not called for last three years. “Had the meeting been called, the irregularities would have been detected earlier also,” power employees’ leader Shailendra Dubey said.
He said the trust used to have employees’ representatives after the trust was set following the trifurcation of the then UP State Electricity Board in January 2000 to take care of employees terminal benefits.
“But after two-three years, our representative was dropped from the board and today employees have no representation in the trust’s board of directors,” he pointed out.
Sources said if the CBI took over the case, some big fish might fall in the net. Energy minister Shrikant Sharma said the government was working in a totally transparent manner and would not spare anyone, whosoever he may be, if found guilty of siphoning employees’ hard-earned money.
“I have requested the chief minister for a CBI probe for this reason only,” he said.
