Former Director-General of Employees State Insurance Corporation (ESIC) P C Chaturvedi has come under the CBI scanner for alleged irregularities in sanctioning 14 projects worth Rs 6,255.39 crore and a PSU consultant transferring ownership of private companies to his family members during 2007-2009.
Those named in the FIR besides Chaturvedi are former Financial Commissioner Rajiv Dutt, former Chief Engineer P R Roy, former Finance Director A K Sinha, former Chief Engineer Rajiv Kumar, former Joint Director V Subramonian, former ESIC Consultant J Sarup (all from ESIC) and former HLL Life Care consultant D Kumar.
The CBI said the ESIC functionaries had "acted in an arbitrary manner by abusing their official position and entered into criminal conspiracy" with each other with an objective to give undue favour to Architecture Consultants. Also, Kumar entered into a "criminal conspiracy with PC Chaturvedi in his appointment" as a consultant to HLL Life Care Ltd for procuring medical equipment.
The ESIC had contracted HLL Life Care Ltd for providing consultancy services for procurement of medical equipment and Kumar being a consultant with the latter played a role. In return, the FIR claimed, Kumar "created (a) few companies and the ownership of which was later transferred to (Chaturvedi's) family members and P C Chaturvedi himself after his retirement".
According to the FIR registered on August 6 after three preliminary enquiries on a complaint by ESIC Chief Vigilance Officer T N Tripathi in 2016, Chaturvedi sanctioned 14 projects worth Rs 6,255.39 crore while he had no powers to sanction construction of medical colleges, including in Karnataka's Kalaburgi, as well as clearing capital works beyond Rs 25 crore.
The FIR said there was no transparency in selecting private architect consultants while Chaturvedi also purchased medical equipment through construction agencies chosen on nomination basis by sanctioning Rs 798 crore violating rules and regulations. He also made the appointment of Roy as Chief Engineer without issuing advertisements and without consulting UPSC.
It is also claimed that the ESIC paid architect consultants for the tendering process, which never took place, as the works were awarded to construction companies on a nomination basis. Even ineligible architect consultants were appointed though they did not fulfil the criteria of having a minimum of Rs 50 lakh average consultancy fee earned in the last three financial years.
Two other architect consultants were even attending meetings without them being formally empanelled, the FIR said.
On the construction of medical colleges, the FIR said he initiated the construction of seven medical colleges through the consultant for medical education project had not examined the issue in its feasibility report. Of this, the projects in Kalaburgi, Alwar (Rajasthan), Mandi (Himachal Pradesh) and Bihta (Bihar) though it did not fulfil the criteria of having the mandatory insured person units.
"The interest of the Corporation was not safeguarded by P C Chaturvedi in the matter of establishing medical colleges," it said.
Charging the accused for criminal conspiracy and criminal misconduct, the FIR said all the officers acted in an "arbitrary manner" to give "undue favour" to Architectural Consultants.