Lucknow. The Uttar Pradesh State Construction and Infrastructure Development Corporation (UPSIDCO) has taken major action over alleged negligence and irregularities in the construction of a children’s hospital at Swaroop Rani Nehru Hospital in Prayagraj. Acting on the directions of Managing Director Sanjeev Singh, the corporation has terminated the construction agency’s contract and forfeited its bank guarantee of ₹55 lakh. The contractor has also been blacklisted for five years. In addition, departmental and legal proceedings have been ordered against five engineers over alleged negligence, irregularities in advance payments and deficiencies in the tendering process.
UPSIDCO was entrusted with the construction of a paediatric unit at Swaroop Rani Nehru Hospital. The contract was awarded to M/s RCB Infracons Private Limited. When the company failed to complete the construction within the stipulated timeframe, the corporation terminated the contract and ordered an investigation.
FCRF Launches CP-FRM to Build India’s Next Generation of Fraud Risk Professionals
During the inquiry, it reportedly emerged that a criminal case had been registered against the firm’s director, but this information had allegedly been concealed during the company’s registration process. Following these findings, the corporation decided to blacklist the contractor for five years.
Contract Terminated, ₹55 Lakh Bank Guarantee Forfeited
Taking serious note of the substantial delay in construction, the corporation cancelled the contract for the project’s second phase and forfeited the ₹55 lakh bank guarantee submitted by the agency.
The remaining construction work will now be completed under the DCU pattern. Chief Engineer (Eastern) A.K. Nirmal has been appointed as the nodal officer to oversee the remaining work and ensure that the project progresses under the revised arrangement.
The corporation has also ordered the recovery of advance payments made to the contractor. The inquiry is examining the role of the engineers involved, particularly in relation to the release of funds and compliance with construction requirements.
Departmental Proceedings Initiated Against Three Engineers
According to the corporation, departmental proceedings have been initiated against former Superintending Engineer Rajesh Chaudhary, Executive Engineer Manish Kumar Srivastava and Assistant Engineer Dharmashankar Tripathi.
The three officials have been accused of negligence in supervising the construction work and allowing partial payments to be released without ensuring that the corresponding work had been completed. Their roles will be examined during the proceedings, and responsibility will be determined based on the findings.
The corporation is also pursuing legal action against former Chief Engineer Pankaj Chopra, who has retired, over alleged irregularities involving the firm’s registration and deficiencies in the tendering process. The inquiry reportedly found that the registration process involved allegedly forged documents and procedural lapses. Further action will be taken based on the findings concerning his role.
Action Against Former Chief Engineer Over Contract Award
Departmental proceedings have also been initiated against former Chief Engineer (Eastern) K.G. Dubey, who was involved in awarding the construction contract.
The corporation has removed Dubey from responsibilities related to the registration and renewal of construction firms. The move is aimed at strengthening oversight of the contractor registration process and establishing accountability for the alleged irregularities.
The proceedings will examine the circumstances surrounding the contract award and determine whether the prescribed procedures were followed.
Corporation Conducting Audit of Contractor Registrations
UPSIDCO Managing Director Sanjeev Singh said the corporation was conducting a large-scale audit of contractor registrations in response to multiple complaints.
The audit is intended to identify firms that allegedly obtained registration using forged documents or concealed information about criminal cases registered against their directors or other relevant individuals.
The action is part of a broader effort to improve transparency in the registration and tender allocation processes, enforce accountability in public construction projects and prevent irregularities in the use of government funds.
Alongside action against the contractor and the officials concerned, the corporation has prioritised the recovery of advance payments and the completion of the remaining construction work. The findings of the ongoing proceedings will determine the further action to be taken against those found responsible.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
