CBI conducts searches in connection with alleged graft in awarding contract for Kiru Hydro project

The Central Bureau of Investigation on Wednesday carried out searches at 16 locations in five states in connection with an ongoing probe pertaining to alleged irregularities in awarding contract for ₹2,200 crore civil work for the Kiru Hydro Electric Power Project in Jammu and Kashmir.

The agency carried out searches in Jammu, Srinagar, Delhi, Mumbai and Patna on the premises of associates of accused, middlemen and others, said people in the know.

A case was registered on April 20 by CBI on the request of the J&K administration against the then chairman (an IAS officer), the then managing director, the then directors, a private company and unknown people for alleged malpractices in awarding contract worth ₹2,200 crore (approx) of civil work for the Kiru Hydro Electric Power Project to a private company in 2019.


It was alleged that in awarding the civil work package, guidelines on e-tendering were not followed and though a decision was taken in the board meeting of CVPPPL (Chenab Valley Power Projects Pvt Ltd) to opt for re-tender through e-tendering with reverse auction after cancelling the on-going process, the same was not implemented and the tender was finally awarded to the said private company.

Earlier, searches were also conducted by the agency on April 21 on the premises of the accused, including the then chairman, the then MD, the then CVPPPL directors etc.

The agency claims to have recovered evidence revealing the alleged role of middlemen, including the then chairman, in financial transactions between these middlemen and public servants.

The CBI in April had registered a case on charges of criminal conspiracy, misconduct and under relevant sections of the Jammu and Kashmir Prevention of Corruption Act. A total of five accused were booked including Navin Kumar Choudhary, IAS and the former chairman of CVPPPL. The then managing director and two directors also stand booked in addition to M/s Patel Engineering Ltd (the private company which was awarded the contract).

In March, the Jammu and Kashmir administration had written to CBI stating that "there had been allegations of malpractices in awarding contract of J&K government employees healthcare insurance scheme to Reliance General Insurance Corporation Limited and awarding of contract in respect of civil work of Kiru Hydro Electric Power Project to a private firm".