CBI BEGINS PROBE INTO UPPCL PF SCAM
LUCKNOW : Around four months after the state government’s recommendation, the Central Bureau of Investigation (CBI) took over the investigation of UP Power Corporation Limited (UPPCL) employees’ provident fund investment scam on Friday. The CBI had registered an FIR in the matter at its Lucknow Anti-Corruption Bureau office here on Thursday.
LUCKNOW : Around four months after the state government’s recommendation, the Central Bureau of Investigation (CBI) took over the investigation of UP Power Corporation Limited (UPPCL) employees’ provident fund investment scam on Friday.
The CBI had registered an FIR in the matter at its Lucknow Anti-Corruption Bureau office here on Thursday.
The UPPCL officials invested employees’ provident fund of Rs 4,122.5 crore (Rs 41.22 billion) in the Mumbai-based Dewan Housing Finance Corporation Limited (DHFL) between March 2017 and October 2019 allegedly in violation of norms to earn huge commission through brokerage firms operated by their family members, friends and other acquaintances.
A senior CBI official said the probe agency had taken over the case in view of the recommendation sent by the state government in the matter on November 2, 2019.
He said the FIR was registered under Indian Penal Code (IPC) sections 409 for criminal breach of trust by public servant, 420 for cheating, 467 for forging the official documents, 468 for forgery for purpose of cheating and 471 for using forged document as genuine against the then UPPCL employees trust secretary Praveen Kumar Gupta and the then finance director Sudhanshu Diwvedi.
The CBI officials on Friday approached the officials of UP police Economic Offence Wing (EOW), who were probing the scam so far to collect documents related to the scam.
The EOW had arrested 17 people, including former UPPCL managing director AP Mishra, Sudhanshu Dwivedi and Praveen Kumar Gupta.
Dwivedi and Gupta were arrested soon after an FIR was registered with Hazratganj police station in the matter on November 2, 2019 while Mishra was arrested later on November 6. They all are still in jail.
On December 26, 2019, the Enforcement Directorate (ED) had also registered an FIR under Prevention of Money Launder
THE PROBE AGENCY HAD TAKEN OVER THE CASE IN VIEW OF THE RECOMMENDATION SENT BY THE STATE GOVERNMENT IN THE MATTER ON NOVEMBER 2, 2019.
ing Act (PMLA) in connection with monetary transactions that were found during investigations done by the EOW officials.
The EOW probe revealed that over Rs 65 crore (Rs 650 million) was paid as commission to 14 brokerage firms hired to invest Rs 4,122.5 crore of UPPCL employees’ PF in multiple shortterm fixed deposits with the DHFL since March 2017.
He said 12 out of 14 brokerage firms had fake addresses and were floated only for the PF fund investment.
Till September 2018, ₹ 1,854.3 crore had been recovered on the maturation of FDs.
However, ₹2,268 crore remains with the private firm that came under the scanner of the Enforcement Directorate in October, 2019 over its alleged ties to Iqbal Mirchi, aide of Dawood Ibrahim.