The Central Bureau of Investigation (CBI) is awaiting directives from the Department of Personnel and Training (DoPT) before initiating investigation into the Uttar Pradesh Power Corporation Limited (UPPCL) Employees Provident Fund (EPF) scam.

It is estimated that employees’ cash worth ₹4,132 crore was lost when private mortgage lender Dewan Housing Finance Corporation (DHFL) got into financial difficulties. In November last year, the Uttar Pradesh government had announced that a CBI investigation would be recommended into the case.

According to officials in the know, the CBI will need a nod from the DoPT before initiating an investigation recommended by a State government. The DoPT, under the Prime Minister’s office, takes a call based on the work load and priorities of the CBI before any directives.

“The State government had recommended a CBI investigation into the UPPCL PF scam in November itself. But three months since the news of the scam broke out, the CBI is yet to begin investigation.

“It appears that the Economic Offences Wing of the Uttar Pradesh Police will file its report on the same. We do not expect much relief from this, and a CBI investigation is essential to bring the guilty to justice,” said Shailendra Dubey, Chairman of the All-India Power Engineers Federation.

“The amount in question is to the tune of more than ₹4,132 crore and merits a serious investigation by the top agencies,” Dubey added.

According to a letter by the Uttar Pradesh State Electricity Board Engineers Association, the decision to deposit cash related to General Provident Fund and Contributory Provident Fund into DHFL was taken by the trustees of the UP State Power Sector Employees Trust on April 21, 2014.

The Ministry of Corporate Affairs is said to have ordered an investigation by the Serious Fraud Investigation Office (SFIO) into the alleged financial irregularities in DHFL after finding instances of suspected fund diversions. The Enforcement Directorate is also investigating the case.

Shell entities

DHFL came under the scanner in the wake of allegations that the company had siphoned off ₹31,000 crore in bank loans through layers of shell entities.

Following pressure from employees, the UP government had announced that UPPCL employees’ contributions in DHFL are safe and that the State would ensure their return through a soft loan to the power company. “Although the Uttar Pradesh government has given assurance of an interest-free loan to UPPCL for compensating the loss to employees, the real culprits should not go scot-free. All attempts must be made to recover the monies from the culprits,” said Dubey.

Related Topics