In a recent move, the Jammu and Kashmir Anti-Corruption Bureau (ACB) has registered a case under the Prevention of Corruption Act following a verification that exposed alleged irregularities in the award of payments for the construction of the Mughal Road project, linking Bufliaz in Poonch to Shopian in Pulwama.
ACB Spokesperson revealed that the case centers around financial discrepancies and substantial losses to the government exchequer due to irregular practices during the project’s execution. The project’s tender, initially floated by the Public Works Department (PWD), Joint Commissioner Works, and the Chief Engineer of the Mughal Road Project on March 15, 2005, culminated in a contract awarded to M/s Hindustan Construction Company Ltd. for an estimated ₹214.40 crore.
“After thorough procedures, the State Contract Committee recommended the contract to M/s Hindustan Construction Company Ltd., which was formalized under Agreement No. 61 PW(R&B) in 2006,” the ACB Spokesperson stated. The project, starting on March 1, 2006, was scheduled for completion by February 28, 2009, but faced significant delays, resulting in extended timelines and multiple supplementary agreements.
The spokesperson further explained that following the initial delay, a supplementary agreement valued at ₹126.64 crore extended the completion date to March 31, 2011. “The project saw yet another extension until February 15, 2012. Despite these extensions, completion remained elusive, prompting the company to request further time adjustments,” said the ACB representative. Disputes around the delay eventually led to an arbitration process.
The ACB investigation found that then Chief Engineer of the Mughal Road Project, Raman Puri, allegedly interacted with company representatives outside official premises, bypassing standard procedures. These interactions, according to the ACB, enabled Puri to facilitate favorable conditions for the company. “In a critical violation, Chief Engineer Raman Puri purportedly signed an agreement on the company’s letterhead, authorizing an escalation clause for the period from February 15, 2012, to December 31, 2012. This paved the way for an arbitration award favoring the construction company, totaling ₹21.52 crore plus an additional ₹11.27 crore,” the spokesperson disclosed.
These actions, as alleged by the ACB, translated into undue financial benefits for the company, causing an estimated ₹54 crore loss to the state exchequer, due to the non-imposition of liquidated damages for failing to meet the original project deadline. The investigation suggests that the Chief Engineer’s unauthorized actions-by exceeding his role and allegedly colluding with the company-played a substantial part in the tribunal’s award on March 28, 2019.
“The ACB has registered the case under FIR No. 23/2024 in Srinagar Police Station, detailing offences under Section 5(1)(d) read with Section 5(2) of the Jammu and Kashmir Prevention of Corruption Act, Svt 2006, and Section 120-B of the Ranbir Penal Code (RPC),” stated the ACB spokesperson. Those named in the FIR include the former Chief Engineer, Raman Puri, residing in Trikuta Nagar, Jammu, alongside the beneficiary M/s Hindustan Construction Company Ltd. and other unidentified individuals. With the investigation ongoing, the ACB emphasized its commitment to uncovering the full extent of the conspiracy and holding accountable those responsible for the mismanagement that has cast a shadow over one of Jammu and Kashmir’s major infrastructure projects.
