₹1.14 Crore Misappropriated in Lucknow Municipal Corporation; NSA Files Complaint Against Five Companies

Lucknow, Uttar Pradesh: A major financial irregularity has been uncovered in the Lucknow Municipal Corporation, involving the embezzlement of ₹1.14 crore from the Employee Provident Fund (EPF) and Employees’ State Insurance (ESI) contributions of over 5,000 municipal employees.

The irregularity, dating between 2013 and 2015, came to light following a report by the Public Accounts Committee (PAC) formed after last year’s Assembly presentation of the CAG report.

NSA Files FIR
Municipal Health Officer (NSA) Dr. P.K. Srivastava has submitted a written complaint at Hazratganj police station to initiate an FIR. The complaint lists the names of five companies allegedly involved in the embezzlement, along with the specific amounts misappropriated.

Companies and Alleged Amounts Embezzled

• M/s Rajshri: ₹17.88 lakh and ₹14.31 lakh
• Swachhkaar Enterprises: ₹3.57 crore
• Patwa Associates: ₹3.57 crore
• Dragon Security: ₹10.73 lakh
• Shark Security: ₹25 lakh
• Eagle Hunting: ₹28.62 lakh
• Aryan Security: ₹10.73 lakh

Lion Security and its associated firms were not included in the complaint as the Municipal Corporation claims they have returned the embezzled funds.

PAC Report Findings
The Public Accounts Committee highlighted the large-scale misappropriation of employees’ EPF and ESI contributions and recommended recovery actions from the implementing firms. Based on this report, the NSA moved to initiate legal action.

Concerns Over Lion Security
Despite the fraud being uncovered, Lion Security continues to operate in the city, handling garbage collection and road sweeping in three major zones. Experts note that while the NSA and municipal actions have exposed the corruption, concrete steps against the responsible firms are still required.

Key Questions Raised
The case raises several concerns: Why was Lion Security not blacklisted after being involved in fraud? When will action be taken against the remaining five companies that have not returned the misappropriated funds? Observers argue that accountability and stricter enforcement are still pending.