In a major financial irregularity case, the Vigilance Department of Uttar Pradesh has registered an FIR against Ashutosh Kumar Rai, former Chief General Manager (CGM) of the Construction and Design Services (C&DS) division of the Uttar Pradesh Jal Nigam, for acquiring assets disproportionate to his known income. A confidential probe revealed that Rai earned ₹2.23 crore through legitimate sources during his tenure, while his total expenditures and asset investments amounted to ₹4.70 crore, indicating ₹2.47 crore in undisclosed income.
When asked to clarify the discrepancy, Rai reportedly failed to provide any satisfactory explanation or supporting documents. Acting on government instructions, the Vigilance Department initiated a case against him under the relevant provisions of the Prevention of Corruption Act.
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Confidential Investigation Uncovers Major Income-Expenditure Discrepancy
According to Vigilance officials, a detailed secret inquiry was conducted after receiving complaints against Rai. The investigation examined:
- Income earned during his tenure
- Investments and financial transactions
- Banking records and asset documents
- Family accounts and related financial activities
The probe revealed:
- Total legitimate income: ₹2.23 crore
- Total expenditures & investments: ₹4.70 crore
- Discrepancy: ₹2.47 crore in suspicious/undisclosed income
Officials noted that such a disproportionate increase in assets, beyond known income, falls under serious violations of the Prevention of Corruption Act, suggesting potential misuse of office for personal financial gain.
Failure to Provide Account of Assets
The Vigilance Department reportedly issued notices to Rai, seeking a detailed explanation for the income-expenditure gap. However:
- He did not disclose the source of several assets,
- Provided no documents validating the use of funds,
- And failed to submit purchase or transaction records.
Authorities stated that this level of financial discrepancy is unlikely without unaccounted or illicit sources. Consequently, the department forwarded a detailed report to the government, requesting permission to file a case.
Government Approval Received on 31 October; FIR Registered
After reviewing the report, the Uttar Pradesh government granted formal approval on 31 October to proceed with legal action. Subsequently, the Vigilance Department registered an FIR under:
The Prevention of Corruption Act, and relevant sections concerning assets disproportionate to known income. The ongoing investigation now includes a thorough scrutiny of Rai’s bank accounts, properties, financial records from the past decade, and transactions linked to family members.
Questions Raised on C&DS Operations; Large-Scale Review Expected
The C&DS unit of the UP Jal Nigam has faced repeated scrutiny in recent years over alleged financial irregularities. Previous cases included cost overruns, fake billing, and collusion with contractors.
Following this case, authorities are expected to review:
- Departmental tendering processes,
- Project funding and allocation,
- Financial decisions at the CGM level,
- Billing patterns in large-scale construction projects.
A senior officer, speaking anonymously, noted:
“This may not be an isolated case. Such a significant discrepancy in income and expenditure often indicates a broader network. More names could emerge during the ongoing investigation.”
Next Steps: Senior Officers and Contractors Under Scanner
The Vigilance Department plans to question Rai’s colleagues, junior officials, and contractors involved in C&DS projects during his tenure. The investigation is focusing on:
Contents
- Which projects involved alleged irregularities
- The accounts to which funds were transferred
- True ownership of disputed assets
