Bhubaneswar: Odisha Vigilance today arrested two officials of Hindustan Steel Works Construction Ltd (HSCL) in connection with substandard execution and misappropriation of government funds in the construction of four 100-seated hostels for Scheduled Caste students in Sonepur district.
According to an official press release, today on the strength of search warrants issued by Special Judge Vigilance, Bolangir, Vigilance officials conducted searches at the office and residence of officials of HSCL. Following the searches, Vigilance arrested Sourav Dey, Senior Site Engineer and Saptarsi Goswamy, Site Engineer in connection with substandard execution and misappropriation of Government funds in the construction of four 100 seated hostels for S.C. students in Sonepur district under ST & SC Development Department.
In this connection, Vigilance has registered a case under sections 13(2) r/w 13(1)(a) P.C. Amendment Act, 2018/406/409/420/120-B IPC.
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 the course of the investigation, it was revealed that the Government of Odisha’s ST & SC Development Department entered into an MoU with M/s HSCL Ltd. for projects worth Rs 43.94 Crores 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 Nos. of 100 seated SC Hostels in Bolangir (8) and Subarnapur (4) district and 03 Nos. 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 the construction of 12 hostel buildings with an agreement value of Rs 8,12,30,877.
This included 4 Nos. of 100 seated hostel buildings for SC students in Sonepur district with an agreement value of Rs 2,71,24,207.
The two public servants Dey and Goswamy failed to supervise the works executed by the Contractors and, in connivance with them, facilitated the 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, the release added.
