The Economic Offences Wing of Uttar Pradesh Police on Monday took over the investigation into financial irregularities in the investment of UP Power Corporation employees’ provident fund money in three non-banking finance companies .
The EOW had already sealed the office of the Power Sector Employees Trust at Shakti Bhawan.
Opposition parties and power employees have mounted fierce attacks on the government, demanding the resignation of Energy Minister Shrikant Sharma and removal of UPPCL Chairman and Managing Director.
The Power Sector Employees Trust, in violation of guidelines of the Central government, invested over Rs 2,600 crore in Dewan Housing Finance Company and two other housing finance companies.
Though the UP government has recommended a CBI probe into the scam, the EOW will investigate the matter till the central agency takes over the case.
Samajwadi Party and Congress have demanded the resignation of the Energy Minister and removal of UPPCL Chairman.
The SP has also demanded that the probe be conducted by a sitting judge of the High Court.
On Monday, an 11-member EOW team visited the Power Sector Employees Trust office on the second floor of Shakti Bhawan in Lucknow. After the scam was disclosed, the EOW had sealed the office of the Trust on Saturday night.
Director General of EOW, RP Singh, said in Lucknow on Monday that a special team had been formed and it would be headed by DIG, Heeralal and SP Shakilzumma. The DG will oversee the investigation as per the directions of Chief Minister Yogi Adityanath.
Already, two officials of the Trust — former Director (Finance) Sudhanshu Dwivedi and former Secretary Praveen Kumar Gupta have been and lodged in jail.
The DG said that both accused would be taken on police remand for further questioning and they would be asked to reply on the documents seized from their offices.
During interrogation soon after their arrest, the two officials disclosed that they had taken the decision to invest in DHFL as the interest rate offered by PSU banks was going down. As DHFL had a rating of ‘A Triple plus’, there was no such problem in investment.
Both accused claimed that they were innocent and said that the decision to invest was taken as per decision taken by the Trust’s Board earlier.