Vigilance Bureau unearths scam worth crores in Panipat MC sanitation contracts
A scam worth crores of rupees has been unearthed in sanitation contracts awarded by the Panipat Municipal Corporation (MC), according to an inquiry report by the State Vigilance Bureau (now Anti-Corruption Bureau or ACB).
The investigation revealed large-scale financial irregularities and collusion between MC officials and two private sanitation companies, leading to substantial losses to the state exchequer.
Sources said the Chief Minister’s Flying Squad and the State Vigilance Bureau had raided the offices of Panipat and Sonepat MCs on September 15, 2022, following complaints of malpractice in the allotment of cleanliness-related tenders — covering sweeping, garbage disposal, and drain cleaning.
A joint team seized relevant records and after a detailed scrutiny, submitted its findings to the government.
The city had been divided into four sanitation zones, with contracts worth Rs 3.55 crore per month awarded to two private firms in May 2022. According to the report, IND Sanitation Solutions bagged tenders for Zone 1 (Rs 88.70 lakh/month) and Zone 2 (Rs 94.90 lakh/month), while Puja Consultation was awarded contracts for Zone 3 (Rs 84.36 lakh/month) and Zone 4 (Rs 82.36 lakh/month).
However, the report states the tender process itself was flawed and “suspicious from the start.” A pre-bid meeting was documented as having occurred on April 18, 2022, but signatures on related documents were dated April 19. Furthermore, while one record claimed no firm attended the pre-bid meeting, another record dated April 20 stated that two firms participated.
The probe also uncovered gross violations of tender terms. One major discrepancy involved 260 e-rickshaws listed in the contractterms, for which Rs 10.40 lakh per month was billed. However, during physical verification, not a single e-rickshaw was found deployed for sanitation work.
Similarly, while contracts mandated 1,259 sanitation workers, a headcount revealed a shortage of 412 employees. Despite this, the MC cleared full payments based on inflated numbers, resulting in an estimated loss of Rs 68 lakh per month.
According to the Vigilance Bureau report, “Officials of the MC, in connivance with contractor companies, caused a loss of crores of rupees to the exchequer by violating tender norms and clearing fraudulent bills.”
The bureau has recommended filing criminal cases and invoking the Prevention of Corruption Act against 12 MC officers and the owners of both contractor firms for their role in the scam.
