The Central Bureau of Investigation (CBI) on Tuesday carried out coordinated raids in Lucknow, Noida and Prayagraj after a major compensation fraud surfaced in the Kandhla–Gorakhpur LPG pipeline project of Indian Oil Corporation Limited (IOCL). Investigators allege that nearly ₹6.50 crore in compensation meant for landowners was diverted to fake bank accounts, with direct involvement of project officials and external accomplices.
Fraud spread across 11 districts; fake beneficiaries added, bank accounts replaced
According to the complaint filed by IOCL’s Chief Vigilance Officer (CVO) Anant Singh, IPS, the pipeline project is executed by IHB Limited, a joint venture of IOCL, BPCL and HPCL. Estimated at ₹1,000 crore, the project spans nearly 2,800 km across Uttar Pradesh and Madhya Pradesh.
Land acquisition for such Central Government pipeline projects is overseen by a Competent Authority (CA), responsible for survey, verification of land ownership, assessment of crop and structural damage, and final disbursement of compensation.
The complaint states that several officials, in connivance with private individuals, manipulated beneficiary lists, inserted non-entitled names, and replaced authentic bank details with fake account numbers. As a result, compensation intended for legitimate landowners was illegally siphoned off.
The largest irregularities have been detected in Prayagraj and Bhadohi, while discrepancies have also surfaced in Unnao, Kanpur Nagar, Kanpur Dehat, Lalitpur, Raebareli, Mau, Varanasi, Pratapgarh and Azamgarh.
Simultaneous raids across three cities, key evidence seized
A team from CBI’s Anti-Corruption Branch, Lucknow, conducted five raids early Tuesday. Searches were carried out at the residences and premises of the accused, including:
- Vibhuti Khand, Omaxe Heights (Lucknow) – Gaurav Singh
- Sector 100, Lotus Espacia (Noida) – Faisal Hasan
- Dhoomanganj, Prayagraj – Sunil Kumar Ahirwar
- Additional locations linked to other suspects
Officials seized crucial documents, bank records, digital storage devices, and multiple files linked to fraudulent account openings and compensation approvals.
Officials named in the FIR
The preliminary inquiry has identified the involvement of several IOCL and revenue officials. Those named in the FIR include:
- Faisal Hasan, former General Manager (Projects), IOCL; currently GM (Material) at the Ministry of Petroleum & Natural Gas
- Gaurav Singh, Senior Manager (Projects), IOCL
- Sunil Kumar Ahirwar, Manager (Projects)
- Vineet Kumar Singh, Engineer
- Surya Pratap Singh, Project Officer
- Abhishek Pandey, Revenue Assistant, Prayagraj
- Vishal Dwivedi and Ashish Kumar Singh, Revenue Assistants, Bareilly
- Other unidentified individuals
Investigators allege that these accused individuals opened fake bank accounts, diverted compensation funds into them, and intentionally blocked payments meant for actual farmers and landowners.
District-wise scale of the scam
As per the complaint submitted to CBI:
- Prayagraj – ₹4.77 crore
- Bhadohi – ₹1.35 crore
- Remaining 9 districts (Mau, Varanasi, Pratapgarh, Azamgarh, Unnao, Kanpur Nagar, Kanpur Dehat, Lalitpur, Raebareli) – ₹39.34 lakh
In total, approximately ₹6.50 crore in compensation was transferred to ineligible or fictitious beneficiaries.
CBI likely to widen the scope of investigation
CBI officials indicate that the probe will now focus on the roles of revenue officials, project managers, data-entry personnel involved in preparing compensation lists, and bank officials associated with opening suspicious accounts.
More officers may be summoned for questioning, while the money trail is being tracked to identify the ultimate recipients of the diverted funds.
