Rs 455cr embezzled in name of non-existing four-lane highway

Lucknow: Amid the ongoing elections in Uttar Pradesh, a major scam worth Rs 455 crore has been unearthed in the name of transforming Delhi Saharanpur-Yamunotri Road in to a four-lane highway.

According to the media reports, the scam, which amounts to Rs 4,55,46,77,500, has been conspired by the officials of a private company, named SEW-LSY Highways Limited, and a few bank officials.

After receiving a complaint from UP State Highway Authority, police registered a fraud case against 18 people including company's director, promoter director and various employees of 14 different banks.

Loans worth Rs 1,700 crore were sanctioned by 14 banks on the basis of forged test papers prepared by the company's director and promoter director. The conspirators took help of company's independent engineers and chartered accountants to execute the scam.

As per the general loan agreement, the project cost and financial plan were shown of Rs 2,770 crore, while the actual cost of the project was estimated at Rs 1,735 crore. Looking at a whopping difference of around Rs 1,000 crore between the two amounts, the officials carried out an internal probe and came to know about the swindle.

A defalcation case has been registered in the Vibhuti Khand Police Station in the state capital. Subsequently, the case was transferred to the Economic Offences Wing (EOW) for further investigation.