Kanpur Dehat: A major alleged scam involving government land, power projects and bank financing has surfaced in Uttar Pradesh’s Kanpur Dehat district. An administrative investigation has revealed that thousands of acres of village community land were allegedly mortgaged to banks using forged documents in order to secure loans worth nearly ₹1500 crore. Authorities estimate that the state government may have suffered a revenue loss of around ₹400 crore in the process.
Cases have been registered against former Additional District Magistrate (Land Acquisition) O.K. Singh, employees of his office, officials of Himavat Power Private Limited and Lanco Anpara Power, along with officers from three major banks, on charges including fraud, conspiracy and misuse of government property.
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Village Community Land Used as Loan Collateral
According to administrative officials, around 2,332 acres of gram samaj land in seven villages near Chaparghata, including Kripalpur, Bhunda, Rasoolpur and Bharatauli, were allotted in 2011 for setting up a power plant project. The land was leased for a period of 30 years under specific conditions laid down by the government.
Under the lease agreement, the companies were required to begin construction of the power plant within three years. Clause 8 of the agreement clearly stated that the land could neither be mortgaged to any bank nor transferred through lease, gift or any other arrangement without prior approval from the state government.
However, the investigation alleged that the companies not only failed to establish the power plant within the stipulated period, but also used land-related documents to mortgage the property with various banks without obtaining government approval. Administrative reports claimed that forged and misleading documents were allegedly prepared as part of the process to obtain large bank loans.
Bank Loans and Lease Violations Under Probe
Investigating agencies stated that the companies secured loans worth nearly ₹1500 crore by using the same land as collateral. Officials suspect that certain bank officers and revenue department employees may have colluded in the process, allowing the alleged irregularities to remain undetected for years.
Authorities further found that the companies had not regularly paid the annual lease rent for the land since 2011. Official records reportedly show that rent was paid only once during the last 14 years, while payments for the remaining period remained pending. Officials said this contributed significantly to the estimated loss of government revenue.
The alleged scam came to light when the concerned banks attempted to initiate auction proceedings for recovery of unpaid loans. During scrutiny of the auction documents, the administration reportedly discovered serious discrepancies related to land ownership, lease conditions and the mortgage process. A detailed investigation was subsequently ordered by the district administration.
Former ADM, Company Officials and Bank Officers Named
Following the inquiry initiated on the instructions of District Magistrate Kapil Singh, Bhognipur Tehsildar Priya Singh lodged a detailed FIR at Musa Nagar police station. The FIR names former ADM O.K. Singh, employees of his office, officials of both companies and officers of Punjab National Bank’s Gurugram branch, Canara Bank and IDBI Bank.
Officials said the investigation is being conducted at multiple levels. Separate inquiries are underway into the land allotment process, approval of bank loans, authenticity of documents and possible violations of lease conditions. Authorities are also examining whether official government records were deliberately altered or manipulated.
Revenue department officials stated that if the allegations are proven, the case could emerge as one of the major land and banking scams in the state. Investigating agencies are currently scrutinising financial transactions, bank records, lease files and the role played by various officials connected to the project.
