The CAG report related with Rural Engineering Department (RED), Uttar Pradesh for the years 2007-12 presents a very large number of abject anomalies which prima-facie come in the category of criminal offence. As per CAG, it undertook verification of 25% of total work and found an irregularity worth nearly Rs 1401.37 crore. Social activist Dr Nutan Thakur today presented an application before the Station Officer, Gomti Nagar, Lucknow to get an FIR registered in this case. The police received the application and gave a receipt for this but did not register FIR. Now Nutan shall be presenting an application to SSP, Lucknow under section 154(3) CrPC to get the case registered.
CAG report says that during this period all the standards, rules and regulations were badly flouted and thus huge financial irregularities were done resulting in heavy loss of government exchequer. For instance, as per the Government of India Guidelines, first administrative sanction is done, followed by financial sanction and finally the Technical sanction. This department gave technical sanction in 1098 cases worth Rs. 298.07 crore before Administrative saction. In many cases, contractors got appointed and rates got fixed before any process was initiated and later on sanctions were given through back-dating. In many cases administrative sanction was given by back-dating up to 799 days. In 969 contracts worth Rs. 127.04 crore, contract was given without any technical sanction.
In PMGSY, it is necessary to make the RED the Project Implementing Unit (PIU) but in case of 47 rural roads (total length 248.9 Km) worth Rs. 131.91 crores, outside organizations were made the PIU. Similarly, against the government rules of not giving any financial power to “Prabhari” (Ad hoc) employees, many Prabhari were granted financial powers, including Uma Shankar, Chief Engineer, RED who was made the Ad-hoc Director on 19 July 2007 and his services were regularized only on 5 March 2010 but who enjoyed financial powers all through.
In most cases, the tender rules were flouted. While as per December 2000 Guidelines, works worth less than Rs. 2 lakhs is allotted through short term tender of 15 days while works worth more than Rs. 2 lakhs are allotted through 30 days tender notice. In RED, during 2007-12, out of total 9423 contracts, 6873 (73%) contracts worth Rs. 2 lakh and more totaling Rs. 1372.69 crores were allotted through short-term tenders. Similarly 3090 contracts (33%) worth Rs. 671.35 crores were allotted through single window system, which was against the rules.
Many irregularities were found during physical verifications. CAG found that in 5 divisions it verified, quality control was totally ignored. This was the situation in Lucknow also where on all fronts, gross irregularities have been found. In Aligarh, Azamgarh, Bijnore, Faizabad, Lalitpur, Moradabad and Sitapur districts, no completion report was sent in 2461 contracts worth Rs 474.46 crores.
At many places contracts were awarded on the basis of fraudulent Security Deposits and in 134 contracts worth Rs. 34.71 crores, non-permissible Security Deposits were used.
Nutan had presented the FIR on the basis of these facts where clear-cut criminal misconduct, impropriety and corrupt activities are being alleged.