PF SCAM: UPPCL MANAGING DIRECTOR SHIFTED
LUCKNOW: The state government late Monday night shifted UP Power Corporation Ltd (UPPCL) managing director and secretary, energy, Aparna U amid the growing controversy over the power sector employees’ PF scam. She has been replaced by M Devraj, who had returned from Central deputation recently. Aparna U has been sent to the irrigation department as secretary. Aparna U was one of a dozen trustees of the Power Sector Employees’ Trust that invested the PF money in the Mumbaibased unsecured private firm DHFCL in violation of rules. UP Congress chief Ajay Kumar Lallu had on Sunday demanded the government remove both the UPPCL chairman and the MD from their positions.
LUCKNOW : The illegal investment of Uttar Pradesh power employees’ provident fund contribution in a Mumbai-based unsecured private housing finance company DHFCL, now a declared defaulter, appears to be a clear case of multi-level lapses resulting in continuance of the scam for two-and-a-half years, people associated with the state’s power sector alleged.
Right from the employees and pensioners’ representatives, who were part of the Power Sector Employees’ Trust that invested the fund, to the internal auditors, who prepared and audited the Trust’s balance sheets, all failed to detect and point out the investment being done in utter violation of the Central government’s guidelines, they added.
It was only after UP Power Corporation Ltd (UPPCL) chairman-cum principal secretary Alok Kumar, who is also the Trust chairman, received an anonymous complaint on July 10 that he got the matter investigated only to find that it was too late by then. The Trust invested around Rs 2,600 crore from the employees’ PF in DHFCL between March 17, 2017 and till a few months ago.
The DHFCL’s bank accounts presently stand frozen on a Mumbai high court order after many investors approached the court when the company started defaulting.
As much as Rs 2,260 crore of the over Rs 2,600 crore remains unrecoverable. The Centre’s guidelines forbid any such investment in an unsafe venture.
“Although the internal auditors verified the UP Power Sector Employees Trust’s balance sheets up to the year 2016-17, in March this year, they never detected or pointed out the irregularities,” Alok Kumar said, adding, “We are taking up this issue with the auditors.”
According to sources, the last meeting of the board of trustees was held on March 24, 2017. Employees did not get their contributory provident fund (CPF) slip (it shows status of their PF deposit) for the last three years, the sources alleged.
“Neither employees nor their leaders or any of employees and pensioners’ representatives, working as trustees to watch the staff’s interests, ever raised their voice against why the meeting was not being convened or why employees were not getting their CPF slips,” the sources said.
“Despite all their good intentions, the energy sector officials, who are also on the Trust’s board of directors, appear to have some have supervisory lapses on their part,” UP Rajya Vidyut Upbhokta Parishad chairman Awadhesh Kumar Verma said.
› Despite all their good intentions, the energy sector officials, who are also on the Trust’s board of directors, appear to have some have supervisory lapses on their part AWADHESH KUMAR VERMA, UP Rajya Vidyut Upbhokta Parishad chairman
PUTTING ALL EGGS IN ONE BASKET
The Trust also appeared to have ignored the basic principles of financial investment and chose to put all eggs in one basket, maximising the risk.
It has been discovered that the accused invested the Trust’s 99% fund in three housing finance companies and more than 65% was put in the controversial HFCL) only. “This was against the basic financial prudence that says investment should always be diversified and all eggs should never be put in one basket to minimise the risk of losing the money,” a senior official said.