(Feature Image: Washed out Teesta III dam in Sikkim. Credit: Save the Hills)
In May 2025, Sikkim Vigilance Police conducted raid in several cities to probe allegations of financial corruption and fraud in 1200 Mw Teesta III HEP dam project claiming that the material gathered could unearth massive scandal that compromised the dam’s safety and led to its structural failure in Oct. 2023. The Assam GST department in Sept. 2025 has uncovered ₹8.2 cr irregularities in tax filings and transactions by the company involved in constructing the dam of 2000 Mw Subansiri Lower HEP.
In J&K, the CBI, after three years of investigation into 624 Mw Kiru HEP corruption filed chargesheet against former Governor and seven others in May 2025. On Dec. 14, the CM has demanded probe into complaints and allegations of blackmailing and threats by 850 Mw Ratle HEP official against local MLA. In Himachal Pradesh, a CBI investigation is going on into the mysterious death of HPPCL chief engineer in March 2025 which led to corruption allegations involving two projects including 450 Mw Shongtong karcham HEP.
In CBI’s ongoing disproportionate assets case against former CGM of NHPC, the ED has also attached assets worth ₹47 lakh in Jan. 2025. In a case related to Maharashtra irrigation scam, the High Court Aug 2025 order has favored FA Enterprises the contractor of the Balganga dam. The prolong legal dispute is related with work payment. In Madhya Pradesh, the Lokayukta in April 2025 has filed cases against nine more corrupt officials involved in Kundaliya dam scam. Our previous overview on the subject can be seen here.
Sikkim Teesta III: CORRUPTION: In a sweeping multi-state operation, the Sikkim Vigilance Police (SVP) launched its largest-ever raid targeting the controversial 1200 MW Teesta III HEP in Chungthang, North Sikkim. The crackdown follows a criminal complaint lodged on May 18, 2025, about a wide web of alleged corruption, criminal misconduct, and fraud.
The raids, carried out over May 22 to 24, spanned across Delhi, Hyderabad, Visakhapatnam, Siliguri, and Gangtok, targeting the homes and offices of former Principal Chief Engineers (PCEs)-cum-Secretaries, ex-Chairmen and MDs of Teesta Urja Ltd, contractors, and unnamed officials from both Sikkim and Central Govt. According to SVP, this material could serve as key evidence in unravelling a massive scandal that may have compromised dam safety, resulting in structural failure and endangering lives downstream. SVP suspects that illicit financial incentives were exchanged in return for approvals, with retired officials used as conduits for laundering kickbacks under the guise of consultancy fees. There are also concerns about illegal clearances from central departments, granted in collusion with insiders.
Subansiri Lower HEP ₹8.2cr tax evasion unearthed at NHPC dam site In Sept. Assam GST department uncovered irregularities involving a company constructing the concrete gravity dam of NHPC’s 2,000-Mw Subansiri Lower HEP. Officials confirmed that Rs 8.2 crore was recovered during a raid this week, with the figure expected to rise as the operation continues. Superintendent of state tax, Monuj Kumar Dowari, who led the 10-member enforcement team, said, “A significant tax evasion case involving M/s BGS SGS SOMA Joint Venture, the company engaged in the construction of the Concrete Gravity Dam at Gerukamukh under NHPC, has been uncovered.”
The raid, launched on Sept. 09, focused on tracing irregularities in tax filings and transactions. According to Dowari, “The swift action resulted in an on-the-spot recovery of Rs 8.2 crore, marking one of the department’s most successful enforcement drives in recent months, and underscoring its strengthened focus on data-driven tax compliance.” The project has already faced multiple delays over the years. The discovery of large-scale tax evasion in its construction has now added another layer of issue to the high-profile project.
Jammu & Kashmir CM seeks probe into coercion allegations at Ratle HEP CM Omar Abdullah on Dec. 15 demanded a probe against two BJP MLAs after MEIL company alleged interference and extortion in connection with the Rs 3,700 crore Ratle HEP in Kishtwar district. Investigation agencies would have acted swiftly if such an allegation was levelled against any of his ministers, Abdullah said.
“Imagine building 133-meter high dam for 850 Mw underground power project. But most of the people working in the project have no competence. We have been coerced to hire these workers. There has been pressure, blackmail and repeated stop work and assault on officials,” said Harpal Singh, Chief Operating Officer of MEIL. Of the 1,434 workers at Ratle hydropower project, 960 are from Kishtwar alone, he said.
BJP leaders’ interference stalls Ratle HEP Harpal Singh, CPO, MEIL has alleged interference by a local BJP MLA, warning that continued disruptions could force the company to pull out of the Ratle HEP, the project has been going on since 2008. He said the under construction project – slated for completion by Sept. 2026 at a cost of Rs 3,700 crore – is now delayed by two years, attributing this chiefly to the continued disruptions allegedly caused by BJP MLA Shagun Parihar. The new deadline that MEIL has conveyed to NHPC is Nov 2028 for the project also involving construction of the 133-metre-high dam at Drabshalla.
Harpal Singh said, “If the unwarranted and unnecessary political interference doesn’t stop, we may have to pull out of the project. Some politicians and their local supporters threaten our officers to fulfill their illegitimate demands, including awarding contracts and large-scale recruitment, despite there being no vacancies.” Parihar dismissed the allegations. The MLA recommended an independent survey of the project to see whether it was being constructed in consonance with the EIAs.
CBI chargesheets ex-Guv, 7 others After three years of probe, the Central Bureau of Investigation (CBI) filed a chargesheet against former Governor Satya Pal Malik and seven others in connection with alleged irregularities in the award of civil works contracts worth over Rs 2,200 crore for the Kiru Hydroelectric Power Project in Kishtwar. Patel Engineering Ltd, the company that ultimately secured the lucrative contract, has also been named in it.
In the FIR, the CBI had claimed that the protocol of opting for transparent re-tendering through e-procurement and reverse auction was not followed despite a resolution at the 47th board meeting of Chenab Valley Power Projects Pvt Ltd. (CVPPPL) – the agency overseeing the project. Instead, the contract was directly awarded to Patel Engineering Ltd, raising serious questions about procedural violations and favouritism.
The investigation stems from a request made by the JK govt in 2022, seeking a CBI inquiry into suspected irregularities in the awarding of two major contracts. These concerns were initially raised by Satya Pal Malik, who served as the governor of J&K from August 23, 2018, to October 30, 2019. Malik had publicly alleged that he was offered a Rs 300 crore bribe to approve two files, one of which related to the Kiru project.
The CBI has booked Navin Kumar Choudhary, then chairman of CVPPPL, along with officials M S Babu, M K Mittal, and Arun Kumar Mishra, and Patel Engineering Limited.
Himachal Pradesh ALLEGED CORRUPTION IN HYDRO In his testimony before the investigation committee led by IAS officer Onkar Chand Sharma, All India Power Engineers Federation (AIPREF) patron Suneel Grover, who is the former MD of Himachal Pradesh State Load Dispatch Centre (HPSLDC), in April 2025 has directly accused HPPCL Managing Director and IAS officer Harikesh Meena and suspended Director Desh Raj of “orchestrating corruption, manipulating contracts and harassing engineers who resisted their illicit dealings”.
‘Irregularities’ in Kinnaur, Una power projects: While deposing before the probe committee, Suneel Grover alleged large-scale embezzlement in the 450-MW Shongtong Karcham Hydro Project in Kinnaur and the 32-MW Pekhubela Solar Power Project in Una, revealing how these projects were allegedly mismanaged to benefit favoured contractors. He has alleged corruption, intimidation and financial malpractices within Himachal Pradesh’s power sector.
Suneel Grover has alleged that Chief Engineer Vimal Negi was subjected to relentless mental harassment, pressure tactics and was forced to approve fraudulent financial dealings under duress. “When Vimal Negi refused to sign on manipulated contracts and inflated project costs, he became a target,” Grover said. “He was denied leave for over six months, burdened with excessive workload and completely isolated within the organization. His pleas for relief were ignored, pushing him into severe mental distress.”
32 Mw Pekhubela Solar Power Project: Cost of construction per MW: ₹6.8 crore (against the national average of ₹3.5–4 crore). Tariff proposed by HPPCL: ₹4.90 per unit (rejected by the HPERC, revised to ₹2.90)
450 MW Shongtong Karcham HEP: Approved estimated cost (as per DPR): ₹1,724.1 cr: Civil works: ₹1,165 crore; Electromechanical works: ₹504.2 crore; Transmission works: ₹54.9 cr. Expenditure incurred up to Aug 2024: ₹2,230 crore (despite only 48-53% work completion). Estimated final cost (if completed by Dec 2026, which is highly unlikely): ₹4,800 cr
In his testimony, Suneel Grover has accused Harikesh Meena of granting undue financial benefits to Patel Engineers, the main civil contractor for the Shontong Karcham HEP. He alleged that Meena attempted to release ₹450 crore as an interest-free advance to Patel Engineers, bypassing financial regulations.
‘Corruption reason behind Negi’s death’ Suneel Grover said that the cost of the 32 Pekhubela solar power project “should not have been more than Rs 120 crore”. The other allegations of irregularities in the project included non-execution of the PPA, payment for drainage dewatering chamber, etc.
The CM had on Dec 2, 2023 laid foundation stone of 220 cr Pekhubela solar project. The project spread on 49 ha started production on Apr 15, 2024. In the first week of Aug 2025, the project suffered flood damages and was shut down for few days. The severe waterlogging raised the question whether HPPCL cleared the project without adequate assessment.
Death Case remains unsolved On Nov 17, 2025, the Supreme Court while questioning CBI officials competence and terming the probe ‘childish’ granted bail to Desh Raj one of the officials accused in engineer Vimal Negi death case. Vimal Negi was chief engineer-cum-general manager of HPPCL. He went missing from Shimla on Mar 10 and his body was found on Mar 18 in Gobind Sagar Lake (Bhakra dam) in Bilaspur under mysterious circumstances.
Terming it a murder, the family alleged mental pressure for wrong doings from Harikesh Meena, MD of HPPCL and Desh Raj, Director (Electrical), HPPCL. Amid significant protests, the govt suspended Desh Raj and transferred MD from the HPPCL. An FIR for abetment to commit suicide was also registered against both. The Shimla police formed Special Investigation Team (SIT) to inquire the case.
Dissatisfied with the SIT’s probe, Negi’s family approached the High Court demanding a CBI probe and the HC on May 23, transferred the case to CBI which on May 27, registered an FIR in the matter. The CBI then had on Sept. 22, arrested the suspended Assistant Sub-Inspector (ASI) Pankaj Sharma for allegedly tampering with a pen drive recovered from the deceased. The former MD had secured interim bail from the Supreme Court on April 07 and as per the latest update, the apex court has on Dec. 03, reserved its order on his bail plea.
Allegation of irregularities in two HPPCL projects 34 Mw Pekhubela solar project in Una and 450 Mw Shongtong Karcham HEP in Kinnaur have also been suspected as reasons behind the death of Negi. He had joined the Shimla office in June 2024 after the Pekhuwala project was allotted. Earlier, he was part of the Shongtong Karcham HEP on Sutlej river in Kinnaur.
Corruption in hydro In Aug. 2025, Er. Suneel Grover levelled serious allegations of corruption and abuse of authority against the current Chairman of HP State Electricity Board Ltd, Sanjay Gupta. In a letter addressed to CM Sukhvinder Singh Sukhu, Grover has sought a high-level vigilance inquiry and demanded Gupta’s immediate removal, accusing him of misusing his post for personal vendetta and financial irregularities. The letter goes on to highlight past criminal cases involving Gupta, citing “three FIRs in his name, one in 1996 and two in 2009.” It refers to an incident where “in one case Rs 3.00 lakh was recovered from his vehicle and he was arrested.”
NHPC ED attaches assets worth Rs 47 lakh of NHPC’s ex-CGM In Jan. 2025 Enforcement Directorate (ED) has attached assets worth Rs 47 lakh belonging to Harjeet Singh Puri, former chief general manager of NHPC, in a disproportionate assets case. Puri, it is alleged, mis-used his power and position to acquire assets beyond his known sources of income, had his four immovable properties in Faridabad & Ludhiana districts of Punjab and Haryana attached under the Prevention of Money Laundering Act. “The total value of the disproportionate asset is around Rs 1.04 crore,” the official said, further investigation is under progress.
The ED’s proceedings follow the investigations and filing of a chargesheet by the CBI in Oct 2024. Puri and his wife Arvinderjeet Kaur are facing trial before the Special CBI Court of Panchkula. The proceedings, before presiding officer Rajeev Goyal, are at the initial stage.
Maharashtra HC orders govt to pay ₹353 cr to contractor in irrigation scam The Bombay High Court in Aug. 2025 granted relief to FA Enterprises, one of several contractors accused in the Rs 35,000 crore Maharashtra irrigation scam, ordering the state govt to pay nearly Rs 303 crore to it. The case concerned the Balganga Dam. The contractor was awarded the Rs 353 cr project in 2009. The cost of the contract was revised to Rs 495 cr the next year.
During its investigation into the sprawling irrigation scam, which involved projects across Maharashtra, the ACB accused FA Enterprises of conspiring to submit bogus bills and commit fraud worth Rs 92 crore. It filed a 30,000-page charge sheet against the contractor in 2015. Work on the dam had already stopped in June 2012 after payments stalled, and Konkan Investment Development Corporation cancelled the contract in October 2016. While the criminal case is still pending in the Thane court, the high court’s relief to the contractor has sparked renewed political debate about governance and accountability in Maharashtra.
Madhya Pradesh Lokayukta books 9 more in Kundaliya dam scam After an investigation into illegal payments related to the Kundaliya Dam project, the Ujjain Lokayukta registered a case against nine more officials for corruption on Apr 4, 2025. The dam, built at a cost of around Rs 5.85 crore on the Kalisindh River, required displacement of villagers in Bhandawad, Nalkheda. Despite the case being filed, no action was taken against accused public servants, allowing them to continue using govt vehicles & potentially influence the investigation.
The case stems from complaint by Dashrath Singh of Jhonta village, regarding the distribution of cash in exchange for plots in the rehabilitation package. The Lokayukta identified 107 individuals involved in embezzlement of Rs 5.85 crore, including 11 govt officials. Notably, the anticipatory bail application of Naib Tehsildar Paras Vaishya was rejected by court.
During the dam’s construction, families were promised a special rehabilitation allowance of Rs 5 lakh for displacement. However, some beneficiaries manipulated documents to falsely claim payments for minors as adults, colluding with officials to obtain these funds illegally. The investigation revealed that the committee responsible for verifying documents failed to do so properly, resulting in ineligible beneficiaries receiving payments. The case against the public servants includes serious charges under the Prevention of Corruption Act and the Indian Penal Code, raising significant concerns about accountability and governance.
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