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Jammu and Kashmir ACB has filed a case against ex-Chief Engineer Raman Puri and Hindustan Construction Company over the Mughal Road Project.
SRINAGAR: The Jammu and Kashmir Anti-Corruption Bureau (ACB) has lodged a case against former Chief Engineer Raman Puri, previously responsible for the Mughal Road Project with the Public Works Department, and the beneficiary contractor, Hindustan Construction Company Ltd.
This case under the Prevention of Corruption Act follows an inquiry into alleged financial irregularities tied to the construction of the Mughal Road, spanning Bufliaz to Shopian-Pulwama, where Puri reportedly sanctioned payment claims by the contractor that were later disputed by the department. The findings indicate that these actions led to significant losses for the government.
The investigation uncovered that the original contract, tendered on March 15, 2005, awarded a project worth Rs 214.4 crores to Hindustan Construction Company, with a start date of March 1, 2006, and a scheduled completion by February 28, 2009. Later, a supplementary agreement in January 2010 adjusted the contract to Rs 126.64 crores with an extended completion deadline of March 31, 2011, which was further stretched to February 15, 2012.
Despite these extensions, the project remained unfinished, prompting the company to request additional time, and the dispute was escalated to arbitration.
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The verification process revealed that Puri, in collaboration with Hindustan Construction Company, exploited an escalation clause in the contract. He endorsed a company-drafted letter agreeing to cost adjustments for the period from February 15 to December 31, 2012. This decision led to an arbitration ruling favouring the contractor with awards of Rs 21.52 crore and Rs 11.27 crore, further draining the government’s finances.
ACB’s investigation shows that Puri, abusing his authority, bypassed official protocols and endorsed conditions favourable to the contractor without prior authorization, facilitating a final arbitration award issued on March 28, 2019. His actions prevented the imposition of Rs 54 crore in liquidated damages against the company for failing to meet deadlines, ultimately benefiting the contractor at the government’s expense.
