Two Engineers of HSCL Arrested By Odisha Vigilance For Misappropriation of Govt Funds

Bhubaneswar: The Odisha Vigilance Department has arrested two engineers belonging to Hindustan Steel Works Construction Ltd., (HSCL) in connection with a case related to substandard execution and misappropriation of government funds in the construction of four 100-seated hostels for Scheduled Caste students in Sonepur district. According to a release from the Odisha Vigilance Department, on the strength of search warrants issued by Spl. Judge Vigilance, Bolangir, searches were conducted at the office and residence of officials of M/s Hindustan Steel Works Construction Ltd. (HSCL). Following the searches, two officials of HSCL namely Sourav Dey, Sr. Site Engineer & Saptarsi Goswamy, Site Engineer have been arrested by Odisha Vigilance and are being forwarded to the Court of Hon’ble Special Judge, Vigilance, Bolangir in connection with substandard execution and misappropriation of Govt. funds in construction of 4 numbers of 100 seated hostels for S.C. students in Sonepur district under ST & SC Development Department.

In this connection, Vigilance Cell PS Case No.08 dated 26.8.2023 U/s 13(2) r/w 13(1)(a) P.C. Amendment Act, 2018/406/409/420/120-B IPC has been registered. Earlier two accused contractors namely Bijay Kumar Agrawal, Class-A Contractor and his power of attorney holder Deepak Kumar Agrawal were arrested in the case and are presently in jail custody.

During investigation, it was revealed that, the Government of Odisha in ST & SC Development Department entered into an MoU with M/s HSCL Ltd. for projects worth Rs.43.94 Crore entrusting the execution of hostel buildings for SC/ST students in KBK districts to M/s HSCL Ltd. This included 26 number of 120 seated ST Hostels in Rayagada District, 12 number of 100 seated SC Hostels in Bolangir (8) and Subarnapur (4) district and 03 number of upgraded High School buildings at Gourmunda, Raska and Bijadore. In turn, M/s HSCL floated a number of tenders for the above projects. Of these, they entered into an agreement with M/s Bijay Kumar Agrawal and his Power of Attorney holder Deepak Kumar Agrawal for construction of 12 hostel buildings with agreement value of Rs.8,12,30,877/-. This included four 100 seated hostel buildings for SC students in Sonepur district with agreement value of Rs.2,71,24,207/-.

The above two public servants failed to supervise the works executed by the Contractors and, in connivance with them, facilitated release of payments and thereby allowed the Contractors to execute substandard work and misappropriate government funds, resulting in wrongful loss to the Government exchequer.

Further, M/s HSCL executed the work without any approved design and drawing from the ST & SC Development Department. No soil test was conducted to ascertain the foundation requirement of the hostel buildings. Detailed investigation is in progress on all these aspects.