NEW DELHI: The anti-corruption branch (ACB) of the Delhi government has arrested two individuals, including a suspended executive engineer and a private contractor, for allegedly siphoning off over Rs 4.6 crore meant for civil works that were never carried out in the Irrigation and Flood Control (I&FC) Department, officials said on Monday.
They said the scam involved the release of payments for nonexistent roads and drains in Siraspur village in north Delhi and painting works in Burari, based on forged documents and manipulated test records.
ACB’s Joint Commissioner Madhur Verma said the fraud came to light after the vigilance branch of the I&FC department received a complaint and ordered a preliminary probe. A team of engineers was set up by the Principal Secretary to physically verify the works.
“The probe found that 100% of the tender amounts had been disbursed in four separate projects—despite no physical work having been executed,” Verma said. According to investigators, M/s Baba Construction Company was awarded three tenders worth Rs 5.3 crore for constructing RCC drains and roads in Siraspur.
Of this, Rs 4.2 crore was fraudulently released without any work being done.
“In another case, M/s Amba Construction Company received Rs 43.74 lakh for repair and painting work at the CTP Network in Burari, exceeding the tender value of Rs 38.98 lakh—again, with no evidence of work on the ground,” Verma said.
The ACB said contractors submitted forged material test reports, manipulated Computerised Measurement Books (CMBs), and fake performance bank guarantees worth Rs 2.24 crore, which were later found to be colour copies not issued by any banks.
“The original CMBs were missing from records,” the joint commissioner said.
“Mandatory checks and certifications were deliberately bypassed,” Verma said, adding that the executive engineer concerned was evasive during questioning. Those arrested have been identified as Gagan Kureel, the then executive engineer (under suspension since December 2023), and Arun Gupta, proprietor of Baba Construction Company.
Verma said, “The investigation is ongoing to identify the involvement of other officials and private parties.” Both accused were taken into custody and booked under relevant sections of the Prevention of Corruption Act and erstwhile IPC.