The Anti-Corruption Branch (ACB) has arrested a suspended executive engineer of the Delhi government’s Irrigation and Flood Control (I&FC) Department and a private contractor for allegedly stealing more than ₹4.6 crore public funds meant for a civic project in Siraspur, north Delhi, police said on Monday. The ACB probe began after a tip-off to the I&FC department’s vigilance branch, after which a physical verification of multiple projects was undertaken. (Representational image)

The accused were identified as Gagan Kureel, the executive engineer under suspension since December 2023, and Arun Gupta, a proprietor of Baba Construction Pvt Ltd.

“The two were arrested after a probe revealed fraudulent disbursal of payments for road and drain works that were never executed,” said joint commissioner of police (ACB) Madhur Verma.

The ACB probe began after a tip-off to the I&FC department’s vigilance branch, after which a physical verification of multiple projects was undertaken. The inspection team found that the roads and reinforced cement concrete (RCC) drains billed and paid for existed only on paper, police said. “In four separate tenders, officials disbursed the entire project cost of ₹4.6 crore even though no physical work was executed,” said Verma.

During the probe, officials allegedly found that Baba Construction was paid ₹4.2 crore out of sanctioned contracts worth ₹5.3 crore and no work was executed. In Burari, another contractor, Amba Construction, received ₹43.74 lakh over and above the sanctioned contract of ₹38.98 lakh for repair and painting works that were never carried out, police said.

ACB officials said the contractors submitted fake performance bank guarantees of ₹2.24 crore, which were accepted without verification. These documents were later found to be coloured photocopies not issued by any bank, police said.

Police said that the original Computerised Measurement Books (CMBs) were missing and the executive engineer was evasive when questioned. “Mandatory tests and checks were not conducted which indicates deliberate bypassing of protocol,” Verma said.

Kureel, who was posted in the CD-7 Division of the I&FC department, and Gupta, were taken into custody following the registration of a first information report under multiple sections of the Indian Penal Code including cheating, criminal conspiracy, and forgery as well as the Prevention of Corruption Act after obtaining prior sanction under Section 17A of the amended anti-corruption law.

“The investigation is ongoing to identify the involvement of other public officials and private individuals who may be complicit in the scam. Further arrests and departmental actions are likely as more evidence emerges,” Verma said.