ACB registers two cases against former Managing Director of J-K State Handloom Development Corporation

Srinagar, Aug 16: The Anti-Corruption Bureau (ACB) on Friday registered two cases against Rakesh Sharma, the then Managing Director, J&K State Handloom Development Corporation Ltd. on the outcome of a preliminary enquiry.

As per an official statement, a case under FIR number 11/2024 of PS ACB Jammu was registered against Sharma, the proprietors of firm M/S Shree Tex Engineers, Boisar Road District Palghar, Maharashtra & others into the allegations that J&K State Handloom Development Corporation Ltd. was allotted Rs 6 Crore for procurement of Handloom machinery for the Samba project but the then Managing Director of the Corporation Rakesh Sharma procured Air-jet looms which do not fall under the category of Handlooms against huge commission from the manufacturers etc.

"The enquiry conducted revealed that the JK State Handloom Development Corporation Ltd. floated NIT for procurement of 10 looms with specifications contained in it, for installation of modernized looms at Project Samba. In response to the NIT, five different firms participated, and the tenders were opened by the Purchase Committee and comparative statement was prepared in which M/S AAR AAR Enterprises, Panipat was declared as lowest one with offered cost of Rs 12.25 lakh and GST per loom at the uniform rate. However instead of placing orders to the lowest bidder, the Corporation procured six number of looms from M/s Shree Tex Engineers, Boisar Road District Palghar, Maharashtra with cost amounting Rs 96.80 Lakh GST from open market which was higher than the rates quoted by L-1 above," reads the ACB statement.

The officers/officials of JK State Handloom Development Corporation Ltd., under a well-knit conspiracy with proprietors of the firm M/S Shree Tex Engineers, Boisar Road District Palghar, Maharashtra, dishonesty and fraudulently for their pecuniary benefits, by abusing their official positions, cancelled the tendering process midway and purchased looms from M/S Shree Tex Engineers, Boisar Road District Palghar, Maharashtra on exorbitant rates thereby conferring undue benefit upon themselves and the proprietors of the firm with corresponding loss to state exchequer, the statement said as per news agency KNO.

While another case under FIR number 12/2024 of PS ACB Jammu was registered against accused Rakesh Sharma. During course of probe, it has been found that the accused, by abusing his official position, approved appointment/engagement of 14 individuals through backdoor means without putting the post to advertisements in violation to the governing provisions conferring undue benefit upon those who desired and probably deserved, it added.

It has also been found that Rakesh Sharma during his tenure as Managing Director JK State Handloom Development Corporation Ltd. made large scale promotions of the employees of Corporation with arbitrary grant of grades.

On recommendation of the DPC, 58 officers/officials were promoted by the Corporation. However, 137 more promotions were also made by Rakesh Sharma, the then Managing Director without the recommendations of DPC and without observing the position of vacant posts.

Some promotions were made by the said Managing Director JK State Handloom Development Corporation Ltd. in favour of employees not fulfilling pre-requisite completion of 03-years period on the post while as excess promotions were made exceeding sanctioned strength of the Corporation, thus abusing his official position and conferring undue benefit to the beneficiary employees with consequent loss to state exchequer, adding that he investigation of both the cases is going on.