The Vigilance Bureau’s Economic Offences Wing in Ludhiana has arrested former Punjab State Power Corporation Limited (PSPCL) Chairman and Managing Director KD Chaudhry in connection with an alleged misuse of government funds. The action comes after a vigilance inquiry found irregularities in the installation of a high-capacity electricity sub-station in a private housing colony in Ludhiana.
Along with Chaudhry, the bureau also arrested retired SDO Sanjeev Prabhakar and Ludhiana-based builder Amit Garg. Officials say the three allegedly worked together to install a 66 KV sub-station in Basant City, a private residential colony in Ludhiana, by using nearly ₹10 crore from government funds.
According to vigilance officials, the project violated existing regulations. In private housing colonies, it is the responsibility of the developer or builder to fund and construct the required electricity infrastructure. However, the investigation revealed that the sub-station in Basant City was installed using funds from Punjab State Power Corporation Limited, which is a government-owned power utility.
Investigators allege that during his tenure, Chaudhry approved the project while Prabhakar, who was the SDO at the time, facilitated the execution of the work. The builder is accused of benefiting from the arrangement, as he did not have to bear the cost of installing the required electricity infrastructure for the housing colony.
Officials involved in the probe said the decision bypassed standard procedures and resulted in a financial burden on the government. The vigilance inquiry reportedly established that there was coordination between the PSPCL officials and the builder, allowing the project to proceed despite clear rules that required the developer to fund such infrastructure.
Sources in the Vigilance Bureau said the case had been under examination for several years. The inquiry reportedly began in 2021 after complaints were received regarding irregularities in the power infrastructure installed in the colony. Investigators examined official approvals, financial records, and departmental documents before moving ahead with legal action.
After gathering evidence, the bureau registered a First Information Report earlier this year. Following the FIR, the agency carried out the arrests on Wednesday as part of its ongoing investigation into the case.
Both officials named in the case had already retired from service. Chaudhry retired as the CMD of PSPCL in 2017, while Prabhakar later retired from the department as Deputy Chief Engineer. Officials say that retirement does not prevent legal action if alleged wrongdoing took place during a person’s tenure in office.
Authorities indicated that the investigation is still underway and more details may emerge as the accused are questioned. Officials are also examining departmental approvals and financial transactions linked to the project to determine whether additional individuals were involved.
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The arrests are part of a broader effort by the Punjab Vigilance Bureau to investigate cases involving alleged misuse of public funds and irregularities in government departments. Cases linked to infrastructure projects and public sector utilities have been under increased scrutiny in recent years.
The accused are expected to be produced before a court, where investigators may seek custody for further questioning as the probe continues.