Activist points out ‘flaws’ in AIT scam probe

Neeraj Bagga

Tribune News Service

Amritsar, September 22

A social worker, SS Sharma, has raised questions on the investigation into the bungling of crores of rupees of the Amritsar Improvement Trust (AIT). In a communiqué to Local Bodies Minister Navjot Singh Sidhu, he said the audit branch was equally responsible as no payment could be made without its consent. 

He sought registration of a case against audit officials. “Frauds of similar nature have occurred at Punjab University in 2011, Punjab School Education Board in Mohalli and the Market Committee, Ludhiana. In these cases, names of audit officials figured in the FIR,” he said.

He said the FIR in the AIT case was registered only against Daman Bhalla who has left the country. There must have been several officials involved in the scam. “It is strange that officials of the audit department have not been probed. As per the norms, not even a single penny can be withdrawn from the Trust account without pre-audit,” he said.

The Chief Vigilance Officer of the Local Bodies Department had conducted the probe for the embezzlement of funds to the tune of Rs 80 crore. Despite being an accountant, Bhalla was working as Deputy Controller Finance and Accounts (DCFA) at the AIT for years. It was only in June that he was shifted to Jalandhar in the capacity of an accountant. As an official of the DCFA rank was not available, Bhalla used the political links of his family that deals in textile business to grab the financially-crucial job.

Sources in the AIT said the amount was part of Rs 600 crore collected from people as earnest money before the launch of the 97-acre scheme in 2006. Interest being accrued on this whopping amount was converted in FDRs. However, employees, especially Bhalla, did not register the account which was opened in a branch of a private nationalised bank in cash book.

They said major amount of the Rs 17.23 crore was withdrawn by Bhalla himself but he also released it in favour of his family members.

A Special Investigation Team (SIT), led by ADCP (Crime) Paramjit Singh, is probing the matter. 

Daman Bhalla and clerk Satnam Singh are still untraceable. He said the SIT was investigating all transactions of the seized accounts from its sources to destinations.