Chandigarh: A major financial irregularity linked to the Punjab State Power Corporation Limited (PSPCL) has come to light, with the Punjab Vigilance Bureau arresting former Chairman-cum-Managing Director KD Chaudhry along with two others over alleged misuse of government funds amounting to nearly ₹10 crore.
Violation of Cost-Sharing Norms for Private Infrastructure
The other arrested individuals include PSPCL senior executive Sanjeev Prabhakar and Ludhiana-based builder Amit Garg. According to officials, the case pertains to the installation of a 66 KV sub-station at Basant Avenue in Basant City, Ludhiana, during 2014–15, where rules were allegedly bypassed to benefit a private housing project.
Investigating agencies claim that the installation was carried out in violation of established norms, under which the cost of setting up electrical infrastructure in a private colony is typically required to be borne by the developer. However, in this case, it is alleged that PSPCL officials, in collusion with the builder, allowed the expenditure to be funded from government resources.
This alleged arrangement resulted in a financial burden of approximately ₹10 crore on the state-run power utility, while providing direct benefit to the private real estate project.
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Administrative Overlook and Technical Lapses
The Vigilance Bureau initiated a preliminary inquiry based on a report dated May 10, 2021. Following a detailed investigation, a formal FIR was registered this year, leading to the arrests. Officials stated that multiple layers of approval and execution were bypassed during the project’s implementation.
The probe further alleges that officials at the time failed to properly assess the electricity load requirements of the colony and did not conduct adequate verification of no-objection certificates (NOCs). Had proper procedural checks been carried out, the entire cost of the sub-station could have been recovered from the builder, officials claimed.
Vigilance sources said that the irregularities indicate a lack of transparency in decision-making, with project files allegedly pushed forward without proper scrutiny. The findings suggest systemic lapses in the approval and execution process of critical infrastructure projects.
Association Concerns and Historical Context
While no detailed official statement has been issued by the arrested former officials, the Engineers’ Association has expressed concern over the arrests. The association stated that the case is over a decade old and urged authorities to consider the age and service record of the accused.
KD Chaudhry, who served as the first CMD of PSPCL during the SAD-BJP government, stepped down in 2017 after a change in the state government. He is currently around 75 years old, according to available information.
Widening Probe into Accountability Fixation
A spokesperson for the Vigilance Bureau confirmed that the investigation found government funds were used to install infrastructure that primarily benefited a private housing colony, despite rules mandating that such costs be borne by the developer.
Officials added that the ongoing investigation will focus on financial transactions, approval mechanisms, and fixing accountability at various administrative levels. The probe is expected to examine whether similar procedural violations occurred in other related infrastructure projects as well.
Authorities have indicated that further revelations are likely as the investigation progresses, and additional individuals connected to the case may come under scrutiny.
