Probe initiated into alleged Rs 2,000 crore classroom scam: Delhi DCP ACB Shweta Singh Chauhan

New Delhi [India], April 30 (ANI): A complaint was received alleging a Rs 2,000 crore scam involving former Delhi Ministers Manish Sisodia and Satyendar Jain, who are accused of inflating costs for constructing semi-permanent classrooms, Deputy Commissioner of Police-Anti Corruption Branch Shweta Singh Chauhan said on Wednesday.
The cost per unit is estimated at Rs 24 lakh, significantly higher than the market rate at the time
According to Chauhan, the probe has revealed massive cost escalations and violations of procurement rules, with 34 contractors linked to the Aam Aadmi Party (AAP).
Speaking to ANI, Chauhan said, "We received a complaint against Manish Sisodia, former Deputy CM, and Satyendar Jain, former PWD Minister... the scam is of over Rs 2,000 crore. The classrooms were semi-permanent structures, and the cost estimate was around Rs 24,00,000 per classroom, which was far more than the prevalent market rate back then."
"There was a considerable cost escalation by the time projects were completed. The allegations are that the prevalent market rate by then was Rs five lakhs to complete a classroom structure," she added.
Earlier in the day, the Anti-Corruption Branch (ACB) of the Government of National Capital Territory of Delhi (GNCTD) registered a case against Sisodia and Jain over allegations of a Rs 2,000 crore scam linked to the construction of classrooms and school buildings at exorbitant rates.
The complaint was filed by BJP Delhi spokesperson Harish Khurana, BJP MLA Kapil Mishra, and Neelkanth Bakshi of the BJP's Media Relations Department. The complaint alleged irregularities in the construction of approximately 12,748 classrooms at a reported expenditure of Rs 2,892 crore. The cost per classroom, as per the awarded tenders, stood at around Rs 24.86 lakh, even though similar structures could be built in Delhi for approximately Rs five lakh, they claimed.
It has also been alleged that the project was handed over to 34 contractors, most of whom were allegedly affiliated with the AAP.
According to ACB chief Madhur Verma, during verification, it was found that the Expenditure Finance Committee (EFC), in its meetings during the financial year 2015-16, had decided the project should be completed by June 2016 within the sanctioned cost, without any scope for future cost escalations.
However, despite those directives, not a single project was completed within the stipulated timeframe, and significant cost deviations were observed.
The enquiry revealed that a report by the Chief Technical Examiner (CTE) of the Central Vigilance Commission (CVC) in this matter was issued on February 17, 2020, with the approval of the competent authority, but was allegedly withheld for nearly three years.
The CVC report highlighted serious violations of several provisions under the CPWD Works Manual (2014), the General Financial Rules (GFR) 2017, and CVC guidelines. It also alleged that various decisions made after awarding tenders were not in line with prescribed rules, resulting in a substantial financial loss.
The report further noted that the cost of constructing the semi-permanent structures (SPS) ended up being nearly equal to that of permanent structures. The actual construction cost of SPS classrooms stood at Rs 2,292 per sq ft, which closely matched the Rs 2,044-Rs 2,416 per sq ft cost of pucca model schools.
Due to the adoption of richer specifications, no financial advantage was achieved by opting for SPS construction over permanent structures, the report observed.
The enquiry also revealed that tenders were floated for Rs 860.63 crore, but the contract values later increased by 17 per cent to 90 per cent due to revised specifications. This led to an escalation of Rs 326.25 crore, of which Rs 205.45 crore was attributed to richer specifications, comprising 23.87 per cent of the awarded value. No fresh tenders were floated for these changes, violating CVC guidelines. Additionally, in five schools, work worth Rs 42.5 crore was allegedly carried out without proper tendering by using existing contracts.
Based on these findings, the ACB initiated a proposal to seek prior approval under Section 17-A of the Prevention of Corruption Act against the former Education and PWD ministers. The competent authority has approved the ACB's proposal.
An FIR has now been registered, and a full-fledged investigation is underway to uncover the entire conspiracy and determine the involvement of the former ministers, as well as any complicit officials or contractors, known or unknown. (ANI)