WAPCOS Project Manager Caught Taking ₹10 Lakh Bribe, ‘Commission Racket’ in Contracts Exposed

The Central Bureau of Investigation (CBI) has arrested a project manager of WAPCOS Limited while allegedly accepting a ₹10 lakh bribe for awarding a public contract. Contractor Babloo Singh Yadav and three others were also taken into custody.

Simultaneous searches across Lucknow, Ghazipur, Deoria and Bhubaneswar uncovered what investigators describe as an organised bribery network operating within public works contracts.

₹11.81 Crore Project Linked to Alleged Commission Deal

According to the FIR registered by the CBI’s Anti-Corruption Branch, the bribe was part of a larger arrangement tied to a ₹11.81 crore contract for construction of a tamarind processing unit in Rayagada, Odisha.

Investigators allege:

• Nearly 13% of the contract value was fixed as illegal commission

• ₹25 lakh in cash was transported from Ghazipur to Lucknow

• Payments were structured in stages linked to contract milestones

Those arrested include driver Shubham Kumar Pal, Rajesh Kumar Singh and Rahul Verma, who allegedly facilitated cash movement and distribution.

‘Rate Card’ System Allegedly in Operation

Preliminary findings suggest a structured commission model was in place, including:

• 4–6% for securing tenders

• 4% for issuance of the Letter of Acceptance (LoA)

• 3% for clearing contractor bills

Investigators believe bribe collections were coordinated through intermediaries and routed via trusted associates.

Illegal Investments and Asset Trail

The probe revealed that the accused’s brother allegedly helped channel illicit earnings into land purchases and construction activities in Deoria.

Documents recovered during searches reportedly indicate assets disproportionate to declared income.

Bank accounts, digital records and property documents are being examined to establish the money trail.

Stronger compliance mechanisms - similar to oversight systems followed in auditing services in india - are often considered critical to detect red flags in contract award processes and financial transactions.

Hawala Transactions Under Scanner

Officials recovered transaction records and a marker note, raising suspicion that portions of the illegal payments may have been routed through hawala channels.

Financial forensic teams are analysing:

• Digital payment records

• Cash movement patterns

• Intermediary account linkages

• Asset acquisitions

Multi-State Searches Continue

Search operations were conducted at:

• Four premises in Lucknow

• Residential locations in Ghazipur and Deoria

• Office premises in Bhubaneswar

Authorities are evaluating movable and immovable assets to assess disproportionate wealth and potential conspiracy charges.

Investigation Expanding

The arrested accused are expected to be produced before a special court for custodial remand.

CBI officials indicated that further arrests are likely as investigators examine whether similar commission demands were made in other contracts.

The case has highlighted concerns over systemic vulnerabilities in public procurement processes and the need for enhanced transparency and accountability in contract allocation.

The investigation remains ongoing.