बुधवार, 26 जुलाई 2017

Corruption and Irregularities in Tender Process in OPTCL

Complaint in the matter of selection of  Final Bidder M/s High Tech Systems & Services for supply of “12 nos. new design ERS Towers suitable  for 400kv transmission line network  of OPTCL
The Chief Secretary
Govt. of Odisha
Secretariat, Bhubaneswar

Sub- Seeking an Inquiry into huge corruption and irregularities in the matter of selection of Final Bidder M/s High Tech Systems & Services for supply of “12 nos. new design ERS Towers suitable for 400kv transmission line network of OPTCL as per Tender (No. Sr. G.M.-CPC-ICB-ERS-24/2015) for ERS (Emergency Restoration Service) suitable for 400Kv Transmission line Network for OPTCL

Dear Sir
I would bring to your kind notice the abovementioned subject matter seeking your kind intervention and necessary action.

That on dt. 22.6.17, I had submitted RTI Application to the PIO, office of Odisha Power Transmission Corporation Limited (OPTCL), Bhoi Nagar, Bhubaneswar seeking information about details of        Tender ( No. Sr. G.M.-CPC-ICB-ERS-24/2015)  for ERS (Emergency Restoration Service) suitable for 400Kv Transmission line Network for OPTCL. On 11.7.17, the PIO supplied some information. While analysing the information,  I  unearthed  huge irregularities  and corruption  in  the selection  procedure  for selecting  final bidder  M/s High Tech Systems & Services, Kolkata.  The OPTCL  has ignored, bypassed  its own terms and conditions of tender  and shown favouritism  to the said Company  for  awarding  the bid.  These are as follows.

1.    In August, 2015,  OPTCL  had released  advertisement inviting  International Competitive bidding in e-tendering mode only from reputed manufacturer, type testing, inspection, loading at factory, transportation to & unloading at site / stores  including  guaranteed  obligation  for supply of lightweight  aluminium, modular type emergency  restoration system (ERS) suitable for  400kv transmission line Network  of OPTCL with an estimated  cost of  Rs. 130 Million.  Following   due tender procedure, OPTCL finally awarded this work to M/s High Tech Systems & Services, Kolkatta, an authorised channel partner of M/s Tower Solutions Inc., Canada,  a Manufacturing Company (?).

2.    Under the Head “ Qualifying Requirements  of Bidders: Technical qualification”, It is mentioned in point 4.1.(iii) that   the bidder  should have  already supplied  400KV ERS ( Emergency Restoration Services) tower  for which  he submits  his offer  not less  than  the quantity  tendered ( 12 nos. new design ERS towers suitable for  400kv transmission line Network) as per specification  in last five years.   On RTI query, the PIO has not supplied copy of any purchasing order rather two performance report from    NTE-Transmissora de energia, Brazil and CESC Limited.  The performance report cannot justify purchasing Order. If there is performance report, then why the Company has not produced PO.  It is assumed that the Performance Report is false and manipulated. So it is proved that this Manufacturing Company Tower Solutions Inc, Canada   has not got any purchasing Order from any agency for procurement of 12 nos. new design ERS towers suitable for 400kv transmission line Network even not from India.   ( Copy of Performance Report of NTE-Transmissora de energia, Brazil  and CESC Limited is attached  as annexture-1)

3.    M/s Hi-tech System and Services Limited is not OEM (Original Equipment Manufacturer). It is the channel partner of Tower Solution Inc, Canada. It  is astonishing  that  in its Purchase Order ( PO)  which has been awarded  to M/s Hi-tech System and Services Ltd. , OPTCL has not mentioned  a single word  about the OEM. This type of P.O. is likely to cheat technical people issued by OPTCL. ( Copy of purchasing Order attached as Annexture-2).

4.    As per Tender Advertisement, the bidder should be  a manufacturer or their authorised  channel partner  of 400KV  ERS tower for which he submits the offer. From the document produced  by the final bidder, it  was found that the major items like  Foundation Base plate, Foundation Base  Artiulation,  Tower sections ( TSMast), Universal attachment , Gin Pole etc.  are manufactured  and type tested  at  Laser  AMP, Granby, QC, Canada, whereas  the supplier is  “ Tower Solutions  Inc. , 7030 Woodbine Ave, Suite  500 , Markhan , ON L3R6G2, Canada. While browsing the website, it  was also found  that Tower Solution , Canada  is  a Company having ISO 9001 certificate  for sales, engineering  and supply  of emergency tower for the high voltage  transmission industry, training of  electrical utility  companies  in using  temporary tower  and consulting to  electricity utility  companies.    It has also specialisation in transmission Modular Restoration Towers used for emergency restoration of high voltage transmission lines. It is a supplying-partner of Manufacturing Company Laser AMP, Canada. (Copy of document is attached as Anexture-3).

5.    Under the Head “ Qualifying Requirements  of Bidders: Technical qualification”(4.1.v), it is mentioned that the offered equipment  should be  type-tested  at  Govt. approved  laboratory /CPRI/ NABL accredited  laboratory in case bidder(s) manufacturing  facilities  in India.  In case bidder(s) manufacturing  base is outside  India, the offered equipment  should be type-tested  from KEMA, Holland/ EDF, France/Hydra-Quebec, Canada/CESI, Itay/IPH, Germany/KERI,Korea, XAHARI, China/ CRIEPI, Japan and in other cases,  it shall be type-tested  from an internationally Accredited  Laboratory  owed by  the Government of those Countries  of Origin.   But astonishingly,  the  Company  has not produced any such document   from  accredited or Govt. approved laboratory of Canada in support  of  its  equipment type-tested.  But it has submitted a manipulated document from IEEE Testing done  at Laser AMP Inc., a manufacturing Company. Now the question is raised  why Tower Solutions Inc.  has not type-tested  its equipment  in CESI of Canada.  (Copy of document is attached as Anexture-4).

So,  the officials of OPTCL including Hemant Sharma, Managing Director  has flouted all tender norms  and  manipulated  selection procedure by accepting  objectionable  documents provided  by the Company  and shown favouritism  to award  the work  i.e., supply  of equipments  for ERS (Emergency Restoration Service) suitable for 400Kv Transmission line Network. We are  also astonished that how the post of Director, Operation and Director, Project are lying vacant since last five year. Due to vacancy of these posts, Sri Hemant Sharma has become absolute authority  in the matter of decision making process in OPTCL. As a result,  He takes  all decisions on his own  wish flouting all tender norms  and awarding   the said work to  M/s High Tech Systems & Services Since last seven years, he has also been continuing  as Managing Director, OPTCL  without any transfer. 

 We presume that this is clear-cut corruption and undue favour granted to this   company through a big kickback. It has also come to our notice that very sub-standard and less quantity of materials  has been supplied to OPTCL.  Though RTI Application has been filed  for inspection of materials, the PIO, OPTCL does not allow for inspection.

We request you to enquire into the matter  and stop  payment  to this Company and take  legal action against the officials responsible  for it.

Thanking you
Yours sincerely

Pradip Pradhan
Plot No-D-27, Maitree Vihar
Post-Rail Vihar, vanivihar,

Sanjukta Panigrahi

Sachikant Pradhan

Srikant Pakal 

Mass Demonstration and Dharana demanding enquiry of all Mega Scams either by CBI or Lokayukata

Appeal to join in Mass Demonstration and Dharana demanding   enquiry of all Mega Scams either by CBI or  Lokayukata

Immediate Constitution of Lokayukta  as per Odisha Lokayukta Act  is Need  of Hour

Venue- Lower PMG, Bhubaneswar,                                       Date- From 2nd to 4th August, 2017

Dear friends
We, the following signatories i.e., Social Activists and RTI Activists of the state spreheading campaign for transparency and accountability in administration and fighting out corruption in the state perpetuated by Nabin Patnaik Govt., do hereby appeal you to join in Mass Demonstration and Dharana demanding inquiry into all Scams by CBI or Lokayukta by constituting it immediately under Odisha Lokayukta Act.

As aware you are, during 17 years’ rule of Nabin Patnaik Govt., Odisha has witnessed Mega Scams causing revenue loss of thousands of crores of rupees to State Exchequer. Many of these Scams have been exposed through RTI. These Scams  with approximate Revenue loss are Mining Scam ( one lakh Crore rupees), Land Scam in Bhubaneswar and Cuttack ( Rs. 10,000 crores ), Dal Scam ( Rs. 700 crores), OKCL Scam ( Rs. 200 crore), Medhabruti Scam ( Rs. 50 crores) Electricity Scam favouring Reliance Company ( Rs. 2400 crore) , State Cooperative Bank Scam ( Rs. 500 crore ), OMFED Scam  ( Rs. 8 crore ). Water Tax Scam ( Rs. 2000 crore), Quarter Scam ( Rs. 4 crore), NREGA Scam ( Rs. 1000 crore), Chhatua Scam ( Rs. 1000 crore)  Besides that there are   huge corruption and irregularities starting Gram Panchayat to office of Chief Minister in   the field of implementation  of  various  scheme and programme  like Integrated Child Development Scheme, Mid-Day-Meal, Public Distribution System, Indira Awas Yojana,  Biju Pucca Gruha Yojana,  Integrated Tribal Development Schemes,   World-Bank supported projects, Plantation programme etc.

 It deserves to be noted here that these Scams have been masterminded and engineered by the Ruling Class Ministers, MLAs, IAS officers, Companies, BJD workers and their protégé.  Though there has been public demand for inquiry against the perpetrators of corruption mostly IAS officers, the Chief Minister has tried his best to protect them.  For example, after expose of Dal Scam in 2010, Smt. Pramila Mallick, the then Minister for Women and Child Development resigned at the instruction of the Chief Minister.  The Vigilance enquiry reported involvement of 3 IAS officers Sri Pramod Meherda, Sri Manish Verma and Sri Ambika Prasad Das in 700 crore-Dal Scam.  But Sri Nabin Patnaik  did not give sanction to Vigilance  to arrest  them.  Similarly, from 2000 to 2012, the State Vigilance filed corrupt cases against 12 IAS officers and sought sanction from Chief Minister. But CM refused to give sanction and the Vigilance remained silence.  

Similarly, after land scam expose by CAG  about huge irregularities and illegalities  in respect of allotment of land/plot  to IAS officers, Ministers, MLAs, Private Educational Institutions, Hotels  by  GA Dept., BDA, CDA and OSHB, the State Govt. constituted Rask Force under chairmanship of Dr. Taradatt, senior IAS officer in 2014. The Committee produced the report In Nov. 2014 which was accepted by the Govt.  in cabinet meeting on 18.12.2014. The Task Force has recommended series of action against the people who have taken multiple plots by filling false affidavit and under discretionary quota.  Chief Minister has handed over this case to State Vigilance. Though around 3 years have passed, the Vigilance has not arrested a single man nor returned back   a single plot to Govt. fold.  Similarly, the Crime Branch enquiry into 70 acres- Ghangapatna Land Scam has ended in fiasco without taking any action against BJD and BJP leaders.  Within period of last 15 years, 27 companies have not paid water tax to State Govt. Water Resource Dept. under Chief Minister is sitting idle.

A number of  former IAS officers  and present IAS  and IPS officers  who  enjoyed close proximity with Chief Minister and self-claimed blue-eyed boy of the Govt.  and involved  in these scams are Sri Tarun Kanti Mishra, former Chief Secretary ( four plots  from BDA, CDA and GA), Sri Bijay Shama, D.G., Crime Branch ( 3 plots from BDA, CDA and GA), Sri Upendra Nath Behera ( 2 plots  from GA, CDA), Sri Gagan Bihari Dhal ( 50 crore Medhabruti scam), Sri Bishnu Prasad Sethy ( OMFED Scam), Sri Pramod Meherda ( 700 crore Dal Scam), Sri Vishal Dev ( Multi-crore Land Scam), Hemant Sharma ( Coal Scam and OPTCL Scam), Sri Bijay Patnaik, former Chief Secretary  ( 200 crore-OKCL Scam), Sri Manish Verma ( Dal Scam) . Besides that Chief Minister and his Ministers have protected many scamsters like Sri Achyut Samant, founder of KIIT/KISS  who have illegally acquired 100 acres of precious land in Chandaka industrial area and Patia area through fraudulent means in connivance with corrupt bureaucrats.  

In case of OMFED the cabinet Minister concerned  Sri Pradip Maharathy has written orders at the behest of IAS officials to release scam money and punish those officials who have raised questions against the scam. Two senior officials and AG have clearly pointed about the scam in their reports but the Minister dared to exonerate all. In case of OSCB JagneswarBabu was sent to jail, but the concerned MD TK panda of OSCB got two term extension with huge perks and benefits and the concerned secretary Bishnupada Sethty got lucrative positions to head two departments .

Though Justice Shah Commission recommended for CBI inquiry into Mining Scam, Both BJD Govt. and BJP Govt. at centre are hand in glove to stop the CBI inquiry.  The people of Odisha are ditched by both these parties and left hopeless world. BJP leaders are maintaining ominous silence over all these scams like Mining Scam. Land Scam etc.

Directorate of Vigilance has been formed to investigate into all corruption ad irregularities in administration and Govt. work.  But at the instance of Chief Minister, the Vigilance could not proceed to investigate into these scams.  The Vigilance has been instructed to cover up these scams. When the activity of the Vigilance was monitored through RTI, Chief Ministers took over night decision to keep Vigilance out of purview of RTI Act.

When the Chief Minister has been trying to cover up all the Mega Scams and protecting perpetrators of Crime, at the same time he is giving clarion call to stop PC (corruption in development work) and instructed the administration to form Vigilance Committee at district and block level to check it. We  feel  that it is  calculated  design of Nabin Patnaik  and his coterie to divert the attention of the people from real issues i.e., Mega Scams   which has destroyed economic backbone of the country  reducing poor to poorest of the world.

So keeping in view the deplorable situation of the state,   we are organising this  3-day Dharana and Demonstration demanding   enquiry into these scams  and immediate constitution of Lokayukta  in Odisha.

With regards
Appeal  by

Sudhir Mohanty, Advocate                                                         Ashok Nanda
Secretary, Odisha Durniti Sanghrash Manch                        Convener, Lok Samukhya
M-9861063290                                                                                   M- 9437005133

Ashok Mallick                                                                                   Biswajit Mohanty
State President, NACDOR                                                            RTI Activist

Khirod Rout                                                                                        Debesh Dash
Advocate, Odisha High Court                                                     Odisha Lokayukta Abhijan   

Sanjukta Panigrahi                                                                          Pratap Sahu
Woman Activist                                                                               Convener
                                                                                                                Odisha Basti Sangharsh Samiti

Abdil Wali                                                                                          Jia Uddin,Kondhamal
Social Activist                                                                                    Social Activist

Prof. Jantrana Parikhit                                                                   Sachikant Pradhan
Member, ONAS                                                                                Bhubaneswar basti Unnayan Parishad  

Priyabrata Gadnaik                                                                         Debashis Hota
RTI Activist, Dhenkanal                                                                 Human Rights Activist
M-9437091020                                                                                   M- 9938893415

Srikant Pakal                                                                                      Kahnu Ch. Beura
RTI Activist, Cuttack                                                                        Samaj Andolan.Bhubaneswar

Sudarshan Chhotaray                                                                     Pradip Pradhan
Odisha Ganatantrika Samukhya                                                RTI Activist

Prakash Samantsinghar                                                                 Ranjan Kumar Das
RTI Activist                                                                                         RTI Activist, Kendrapara

Pratap Mohanty                                                                               Sanjay Sahu

RTI Activist, Kendrapara                                                               Social Activist 

सोमवार, 24 जुलाई 2017

Medhabruti Scam-Biggest ever in Higher Education

Corruption worth more than Rs.50 crores in name of Students Scholarship by a coteries of corrupt Govt. officials, Bankers and brokers of   three companies i.e., CSM Technology, TQM Service  and OKCL, a fraud Company promoted  by Govt. of Odisha ,–
 A biggest ever scam in Department of Higher Education   Masterminded by Sri Gagan Bihari Dhal, Secretary of the Dept.  Under Nabin Patnaik Govt. unearthed   under  RTI

Every year, Govt. of Odisha  in Dept. of  Higher Education  through  Common Application Form declares  award of different “Medhabruties” ( Scholarship) for the meritorious students  of Odisha  pursuing  higher studies  in the field of  general, technical / professional  education within  or outside the state.  Earlier, Students’ scholarship was managed and sanctioned by Directorate of Higher Education level. But Higher Education Dept.   started managing  the Scholarship  for professional education from 2011-12, and all other general scholarship  from 2012-13. Presently, Higher Education Dept.  is sanctioning two types of Scholarship  i.e.,  (a) General ( Non-plan) for  students of Junior Merit ( +2 course), Senior Merit ( +3 Course) & PG Course,  (b) Technical & Professional ( Plan) for students of Engineering, MBBS, BDS  and other professional Courses. These scholarships are awarded  to the students  for the entire  course period – first year as fresh and rest  as Renewal years  in the following manner
Category of Scholarship
Name of Scholarship
No. of Scholarship awarded  per year
Rate of Scholarship per year ( In Rs.)
Junior Merit ( +2 courses)
Senior Scholarship ( +3 courses)
P.G. Course
10,000 nos
3,000 Nos
1,500 Nos
Technical/ Professional

10,000 Nos

    *Every year, the State Govt.   gives  students scholarship to  24, 500 meritorious students  with annual expenditure of Rs. 16 crores . 

 Generally, the Scholarship is awarded to a student for  his first time course on-line.  But for renewal  of the Scholarship,  the  Higher Education Department vide  office order  No. 112370/HE dt. 1.5.2013    released a renewal Form to  help the students  to apply for renewal of their scholarship.  The concerned  students  shall fill up  the  form online  properly  and submit  the downloaded  form along with  all supporting  documents  like  copy of first page of savings bank  pass book  issued  by Banks , last academic performance report  etc.  after signature  to their College  authorities.  After receiving the renewal application, the College authority shall verify the form about correctness of facts submitted by the students. The College authority after verification of the renewal applications shall prepare a list of students for renewal of scholarship   and transmit to Higher Education Department.      

The information obtained under RTI reveals that since 2011, the Higher Education Dept.  has engaged  three Companies i.e., CSM Technology, TQM service and OKCL for scrutiny of application form, identification of students  eligible for scholarship  and disbursement of scholarship  amount through on-line.  While CSM Technology and TQM service were assigned work through tender, OKCL ( Odisha Knowledge Corporation Limited )  was assigned  through only work order.  TQM service was assigned the work from 23.2.2013 to 17.4.2015 annd CSM Technology got assignment upto 222.2013. OKCL has been looking after disbursement of scholarship from 18.4.2015.

Total allotment received  and expenditure incurred  for awarding scholarship and its renewal , thereon under different heads of scholarship  are as follows.
Total allotment received ( In Rs.) 
Total expenditure incurred ( in Rs.)
Total surrendered/lapse ( In Rs.)

On complaint of huge corruption and misappropriation of scholarship fund, the State Govt. has given order No. 13778/HE dt. 26.6.15 for audit of scholarship paid to the students for the period 2011-12 to 2014-15.  A 3-member audit team produced the audit Report on 1.2.2016 to G.V.V. Sharma, Principal Secretary, Dept. of Higher Education. RTI Application was filed to the PIO,  dept. of Higher Education, Govt. of Odisha seeking information about copy of audit Report. The PIO supplied the audit report on 4.3.17. The Details of irregularities and misappropriation of Scholarship fund by the Officials in connivance with the Companies has been pointed out  by the Audit Team in their report. The details are as follows.

1.    There are total no. of 519 Bills i.e., 80 bills (2011-12), 154 Bills (2012-13), 147 Bills (2013-14), 138 Bills ( 2014-15) prepared  for disbursement of Scholarship money   to the students. Out of 519 Bills,  the  Audit Team audited only 2 Bills ( Bill No. 108 / 2014-15/7.1.15 ) and ( Bill No. 112/14-15/7.1.15).
A.                   Audit of  Bill No. 108/14-15/7.1.15 ( Plan) Renewal of Scholarship-  Under this Bill, 302 no. of beneficiary students  ( professional  & Technical education)  from different  colleges  of Odisha  were granted scholarship  of Rs. 20,000.00 ( each for two years@ Rs. 10,000.00. When renewal form for the above 302 no. of students sought from Scholarship section of Higher Education Dept., they could produce only 104 no. of students.  Rest 198 no. of Renewal Form was denied on the ground that it has been misplaced. It is presumed that there is huge irregularities and misappropriation of fund in the name of fake students. That’s why it was    denied to audit Team.   However, the audit Team scrutinised the renewal form of 104 students and found huge irregularities and corruption.

i. The scholarship of Rs. 20,000.00 (for years)   has been deposited in fake account in name of same students.  It is as follows.
Name of Student, Course and college
Year of admission
Renewal Year
Bank Account No. with  IFS Code  as per renewal form
 Bank account and IFS Code as per Bill
 Soumya Ranjan Mishra, B.Tech. Odisha Engineering College Bhubaneswar
2012-13 & 2013-14
SBIN 001 2022
SBIN 0000046
ii.    The Audit Team also noticed that many students had applied for both new as well as renewal of scholarship. The Detail is given below.
Beneficiary name  & amount of scholarship  paid @ Rs. 10,000/- per year
College/ Institution
Year of Admission
Period of Scholarship applied
Bank A/c No. IFS Code
Sanjay Kumar Parida
Rs. 20,000/- ( for 2 years)
Ravenshaw College ( MCA)
2012-13 &2013-14
Satyabrata Dash
Rs. 20,000.00 ( for 2 years)
Sukanta Kumar Nayak
Rs. 20,000/- ( for 2 years)
C.V.Raman, Bhubaneswar ( B.Teh.)
Naresh Kumar Barik Rs.20,000/- ( for 2 years)
C.B.T., Bhubaneswar

The reason for  validating  those 4 nos of forms by principal of respective colleges at their level  as per norm of guidelines before forwarding them to the Dept was  asked to Scholarship section  which replied  that  as per order of the Govt. invalidated  cases were entertained  for sanction of Scholarship. But copy of the order of the Govt. could not be produced.

iii.                It was also observed that 6 os of Renewal forms were submitted by College authority to the scholarship section without the seal and signature of Head of the Institution.  These are as follows.
Beneficiary name & Amount of scholarship paid @Rs.10,000/- per year
Year of Admission
Period of Scholarship  applied for
Bank A/C No. IFS Code
Smita Susovita
Rs.20,000/- ( for 2 year)
College of Agriculture, Chipilima
2012-13 & 2013-14
Anshuman Acharya
Rs.20,000/- ( for 2 year)
GEC, Bhubaneswar
Akash Ch. Patel
Rs.20,000/- ( for 2 year)
GIET, Gunupur
Amitesh Panda
Rs.20,000/- ( for 2 year)
SBIN 0000189
Sagarika Senapati
Rs.20,000/- ( for 2 year)
VIV Tech.
Ananya Das
Rs.20,000/- ( for 2 year)
Berhampur University
2013-14 & 2014-15

On query  raised  by the Audit Team  about not validating  those 6 nos of  renewal forms  by Principal of respective colleges, the Scholarship section  responded  that  as these were renewed cases in order to complete scholarship  disbursement  as eligible  for their study period  have been sanctioned.  But the Audit Team objected on the ground of authenticity of such renewal forms which are not given seal in the body of the form or not by the Principal / Head of the Institution.

iv.                     Out of those 104 nos. of Renewal forms submitted to Audit for verification. 83 nos. of form were sanctioned and Scholarship amount disbursed without any supporting document like Semester Mark-sheet ad first page of Bank Pass Book. It is to be noted here that as per Govt. guidelines for sanction of Scholarship vide Govt. Order No. -12370 dated 1.5.2013,  supporting validating documents in respect of sending renewal application form by the College Authority is must.  So Total amount of Rs. 16,60,000.00 ( Rs. 20,000.00 x 83)  disbursed to those 83 students  is illegal.

v.    17 nos. of Non-Collegiate students of Utkal University were given Medhabruti.
The Audit Team found that out of list of 302 nos. of students, 23 nos. belong to Utkal University, Vanivihar.  Again from the 104 nos. of Renewal forms submitted, 18 nos relate to Utkal University.  All these list of students was sent to Chairman, P.G. Council of Utkal University   to confirm whether the enlisted students actually belong to Utkal University or not. The University confirmed only 6 nos. students as their students from the list presented by the Dept.  and rest 17 nos.  as non-bonafide students.

2.       Bill No. 112/14-15/7.1.2015(PLAN) Fresh & Renewal
Under this Bill, 564 nos. of students (professional /technical) from different technical institutions of Odisha were granted scholarship of Rs. 10,000.00 (for a year). Out of 564 nos. of students, the Scholarship section could not produce renewal form of 140 students (Disbursement of Rs. 14, 00,000.00 to the students was kept objection by Audit Team).  So the Audit Team scrutinised 424 nos. of Renewal form.  The irregularities  noticed by the Audit Team is as follows.

i.      Scholarship of Rs. 10,000/- sanctioned and posted in a bank A/c other than the A/C No.  mentioned in beneficiary’s Renewal Form.
Name of Beneficiary /Course
Year of Admission
Year of Renewal
Bank Ac. No. & IFS Code as per Renewal Form
Bank A/C No. & IFS Code as per  Bill prepared
Ashis Palai, B.Tech
NIT Rourkela
Laxmikanta Nayak, B.Tech

ii.        Scholarship disbursed to 17 nos. of Students @ Rs. 10,000.00 without verifying supporting documents like Semester Mark-sheet and copies of first pages of Bank Pass Book.
On query  about it, the Scholarship section  replied that  they were paid  as per earlier payment data available  in the Computer system and moreover Semester Marksheet is not mandatory while sanctioned renewal case. This clarification is objectionable as the Govt. has already issued guideline  vide  Dept. order No. 12370/dt. 1.5.13 that production of Semestar Marksheet is must at the time of applying for Renewal of Scholarship.

iii.  Scholarship amount ( Rs. 10,000.00) disbursed to 6 nos. of students without attachment of validating documents  & seal and signature of Head of the institution.  
Name of Beneficiary
Year of admission
Renewal submitted for the year
Dibya Sundar Swain
IMIT, Cuttack

Amit Kumar Acharya

Subhendu Kumar Subudhi

Amiya Mahanand
VSS Medical
Yudhisthira Badak
Bibekananda Mohanty
On query,  the Scholarship section said that  “ as these were renewal cases and earlier data payment available, Scholarship was sanctioned”.  The Audit objected it o the ground of authenticity of the renewal form as  the  form is not signed  by the Principal/ Head of Institution.

Verification of documents of beneficiary students who received Medhabruti (Scholarship) , out of unvalidated list submitted by TQM.

During 2014-15, the Agency in charge of selecting final list of eligible beneficiary students to receive Medhabruti/Scholarship had furnished two different list of students to the Scholarship section.
One is validated list and another Unvalidated List
·      What is Validated List-  The validated list  comprises  those names , applying  for the first time , whose Medhabruti  Forms were received  by the Agency  from respective colleges with proper verification and  authentication of  their validating documents  by Competent authority.

·      What is Unvalidated List- this list contains of those names whose Medhabruti forms were not validated and forwarded by their respective college authority to TQM.  Their validating documents were not authenticated by respective head of the Institution.
Accordingly, during 2014-15, Scholarship (Medhabrurti) was sanctioned and disbursed @ Rs. 10,000.00 to 417 nos.  of eligible beneficiaries  as per  validated list. Again, the students in  the unvalidated list 7112 nos. were also disbursed  scholarship @ Rs. 10,000.00  during this year as per verbal order of the then Principal Secretary Sri Gagn Kumar Dhal and F.A.C.-cum- Special Secretary to Govt. in Higher Education Dept.

The Audit   carried out test-check of validated  documents out of the unvalidated list of 7112 no. of students  from 10 nos. of Colleges. The selected Colleges  are
i.      Utkal University ( both Professional and P.G. Courses)
ii.     C.V. Raman College of Engineering , Bhubaneswar
iii.   Govt. Engineering College, Bhawanipatna
iv.   College of Engineering & Technology , Bhubaneswar
v.    Silicon  Institute of Technology, Sambalpur
vi.   Silicon Institute of Technology, Bhubaneswar
vii. Gandhi Institute  for Education and Technology , Bhubaneswar
viii.              Institute of Technical  Education & Research, Bhubaneswar
ix.   Centurion University of Technology and Management

During verification of the documents supplied by 10 colleges/institutions, the Audit Team found that a total no. of 2196 students were sanctioned scholarship out of unvalidated list of 7112 of 2014-15.  The College Authorities submitted validated documents for 1378 nos. of students leaving a balance   318 nos of students to be verified by Audit Team.  On verification of  those 1378 nos. of validated documents, the Audit Team noticed the following  irregularities.

· 32 nos. of students are found not eligible for award of Medhabruti for the year 2014-15.
· Out of Non-production of documents for 318 nos. of students as intimated  by the College authorities, 58 nos. of students  are not bonafide students of their institutions.

Result of Audit
A.   A sum of Rs. 1,69,40,000.00 is found as irregularities  out of which  Rs. 92,50,000/- is suggested  for recovery and a sum of  Rs. 76,90,000.00 is held under objection.
B.   The Audit recommended that effective steps may be taken by the College authorities to recover the amount already disbursed to inelligible/ fake students.
C.   In  order to manage  Scholarship  disbursement  to the eligible  and deserving students, a more effective and simpler  software  may be developed  by the verified agency  thereby reducing the risk of  disbursing scholarship  to ineligible  and non-collegiate students.   

Overall Analysis
A.   Out of no. of 519 Bills prepared   for disbursement of scholarship from 2011-12 to 2015, the Audit Team picked up only two nos. of Bills for audit. Out of two Bills verified  by the Audit Team, it was found that  Rs. 1,69,40,000.00 was found as irregularities  which has been misappropriated  by officials of Higher Education Dept., Authorities of College/ Institutions, Company and their Dalals.
B.    The Higher Education Dept. has not taken any steps for audit of rest 517 nos. of Bill. If all the Bills are audited, the magnitude of irregularities will be more than Rs. 50 crores.
C.   It The involvement of both the then Secretary Sri Gaga Bihari Dhal, IAS  and F.A.-cum-Special  Secretary  of Higher Education Dept.  in this scam  can not be ruled out . They might have taken huge money  as bribe  by  passing verbal order for disbursement of scholarship to  7112 nos. of unvalidated  cases. This money  has gone to  ineligible and non-collegiate students of both Govt. and Private Colleges/Institutions.  It requires further investigation by a competent Investigation Agency like CBI.
D.    Though the Audit Team has submitted its report since February, 2016, the Higher Education Dept.  has not taken action against  any officials  till yet.   
E.    The State Govt.  should  not hand over disbursement of scholarship to private Companies like MQM, OKCL et.
F.    The State Govt. should go for  maintaining utmost transparency  in terms of putting all eligible students with their marks  in website and College  notice board selected  for scholarship. So that irregularities can be checked.

Pradip Pradhan