Punjab Newsline | Ludhiana
The Punjab Vigilance Bureau has arrested former Punjab State Power Corporation Limited (PSPCL) CMD KD Chaudhary in connection with an alleged multi-crore corruption scam linked to the installation of a 66 KV power substation in a private housing colony in Ludhiana. Retired XEN Sanjeev Prabhakar and Ludhiana-based builder Amit Garg have also been arrested in the case.
According to the Vigilance Bureau, the three accused allegedly acted in collusion and violated government norms to facilitate the installation of the substation in the private housing project ‘Basant City’ by spending nearly Rs 10 crore from government funds.
Officials said the investigation revealed that if all No Objection Certificates (NOCs) related to the colonizer’s connected colonies had been properly examined and their total electricity load assessed collectively, the entire cost of the 66 KV substation would have been borne by the colonizer. Instead, the project allegedly received undue financial benefit at the expense of the state exchequer.
The Vigilance Bureau further stated that the guidelines issued by the Ministry of Power regarding the establishment of substations were allegedly ignored. Investigators found that the proposal concealed a key fact — the Basant Avenue substation site was located nearly three kilometres away from a proper road, surrounded by agricultural fields and underdeveloped colonies. Even today, the area reportedly lacks proper road connectivity.
According to the probe, then XEN Sanjeev Prabhakar and other field officers forwarded the proposal despite technical objections and deficiencies, while former CMD KD Chaudhary approved it, allegedly overlooking several irregularities. Authorities claim the approval caused significant financial gains to the private colonizer.
Sources said the Vigilance Bureau began investigating the matter in 2021. During the probe, officials thoroughly examined documents, departmental files, and approval records before taking action against the accused.
The three arrested individuals are currently being questioned, while investigators are also trying to determine whether more officials or employees were involved in the alleged scam. Further revelations are expected in the coming days.
The arrests come at a time when political tensions over corruption cases in Punjab are already high. The Vigilance Bureau described the action against former top PSPCL officials as a major crackdown and said the investigation is being conducted impartially, with strict legal action to follow against all those found guilty.
