Does CVC take action against corrupt Executive?

From;                      Date; 07.08.2012

CA KD Aggarwal, Advocate.

# 1366, Sector 40-B, Chandigarh

To,

The Director Central Vigilance Commission,

Satarkata Bhavan , A-Block , GPO Complex ,

INA , New Delhi - 110 023

SUB;           Complaint of Corruption against D P Ojha, Class ‘A’ Employee Ministry of Corporate Affairs, New Delhi presently posted as Official Liquidator, (attached with Punjab and Haryana High Court), Plot No 4-B, Sector 27-B, Chandigarh.

Dear Sir,

1.     Undersigned is a qualified Chartered Accountant, though an advocate, I am presently not doing any cases subject to odd exception but leading my life for social causes of fighting corruption by Public Servants. In nutshell, the present complaint relates to payments by D P Ojha Official Liquidator, Chandigarh, [Class ‘A’ employee of Ministry of Corporate Affairs, New Delhi] of crores of rupees of public money to security agencies in name of security guards who have never been born.  

2.     Sh D P Ojha, Official Liquidator possesses hundreds of Crores of unaccounted assets on behalf of the Hon’ble High Court. Estimated worth is in range of 100 Crores to 1000 Crores. D P Ojha has not given accounts of these assets ever to the Hon’ble High Court or to it Ministry of Corporate Affairs. Neither the High Court nor the Ministry has any inventory or valuation of these assets. Letter No 307 Dt 21.02.2012 received from Punjab and Haryana High Court (Annexure C-1) states;-

“It is hereby informed that the Official Liquidator has not supplied compiled list of inventory of all assets and properties of companies under Liquidation along with their valuation. If it has been filed in a particular case then please mention that case number.”

3.     Similarly letter No 7757 Dt 02.03.2012 received from Government of India, Ministry of Corporate affairs (Annexure C-2) states;-

“I am to refer to your application dated 27.2.2012 on the subject citied and to state that no inventory of list of assets and properties of companies under Liquidation furnished by the official Liquidator to the directorate.”

4.     If some crores are missing nobody will be wiser. But where do these missing Crores go and to whom ??? Another interesting feature of their working is that when High Courts tell them to do something they say that they fall under administrative control of Ministry and has to abide by the Ministry and when Ministry tells them to do something they say that they are attached with Hon’ble High Courts and have to follow the High Courts. The counsels in High Courts are dependent on them as work to private advocates is also referred by OLs. To compound the problem, by the time a Company Judge understands the working of OLs, the Roaster is changed. OLs have thus become masters of hundreds of crores of public money on which public has practically no control.

5.     Guidelines have been framed to be implemented by the security agencies and it the duty of D P Ojha, Official Liquidator to ensure that security agencies have implemented with these guidelines before making the payments. Para 5 of said guidelines (Annexure C-3) is;-

“Names and permanent addresses of security guards deployed at the factory / office premises shall be supplied at spot, if possible, by the security agency, but latest within a week’s time of such deployment to Official Liquidator”

6.     After 2009 the requirement was that monthly salaries would be deposited in the bank accounts of employees every month (C-4). It is a matter of record that bank accounts of employees were opened in 2010 out of which 50% were in Goa whereas the employees are shown to be working in Punjab. Again the bank accounts are blank. No salary has been deposited every month as per requirement. Yet D P Ojha is threatening secured creditors that if they do not pay if will get contempt petition notice issued against them. On personal visits these employees could not be found on spot. Banks pays 9% guaranteed return on fixed deposit than why agencies will some work on 7% return unless they are claiming and being paid for fictitious employees.

 

7.     As per information 90% of the employees claimed to be employed by security agency have never been born and hence there cannot be any proof of their permanent addresses and none was ever supplied. Security agencies are required to submit proof of their identity on spot but none have been supplied ever as the security guards in whose name salaries are claimed to be taken have not even been born. Crores of rupees have been given by D P Ojha without verifying the proof of their existence amounting to embezzlement of crores of public money. As per information D P Ojha is charging upto 50% commission from security agencies for approving payment for fictitious employees.

8.     In one such case Rs 1,5 crores are being claimed by Industrial security and fire services Bombay Pvt Ltd in name of 41 employees out of who 38 have never been born. This payment was duly approved to be paid by D P Ojha. Timely Information was given to secured creditor namely PSIDC (Punjab state Industrial development corporation) vide letters Dt 22.11.2010, 7.1.2011 and to secretary Ministry of Corporate Affairs, New Delhi vide letter Dt 12.2.2011.

9.     The matter was got investigated by High Court by a committee of three Persons ; D P Ojha Official Liquidator ‘Chairman’ ( strangely main accused is made chairman), Security agency (accused) and PSIDC (secured creditor). Additional Managing Director of PSIDC has given a report vide Annexure ‘A’ of minutes Dt 19.3.2012. (Annexure C-5);

“In the Committee meeting held on 12.3.2012 it was admitted by representative of Security agency and Official Liquidator that names and permanent addresses of security staff deployed by security agency were never supplied to official Liquidator as per the terms and conditions of empanelment of security agencies accepted by the Security agency”. 

In the meeting Proof was given for the 1^st time for only 3 regular employees. Another employee Mr Abhey Kumar Yadav was also claimed to be working with Indo gem laminations another company under Official Liquidator during same period. No proof of existence i.e. ID Proofs, proofs of permanent addresses etc of remaining 38 employees was given. High Court has no administrative control over Central Government Employees.

10.    Inspite of the above information and proofs of embezzlement of crores by D P Ojha, neither the Ministry of Corporate Affairs nor Hon’ble High Court has taken any action and it appears that D P Ojha enjoys some ‘clout’. Sh D P Ojha being class ‘A’ employee of Ministry does not come under administrative control of Hon’ble High court. The only authority competent to take action against D P Ojha is Central Vigilance Commission. Hence this complaint.

For information and necessary action;

CA K D Aggarwal, Advocate.