LUDHIANA, MAY 20 — The Vigilance Bureau Economic Offences Wing on Wednesday arrested KD Chaudhry, the former Chairman and Managing Director of the Punjab State Power Corporation Limited, for allegedly misappropriating state funds to benefit a private infrastructure developer.
The enforcement action also resulted in the detention of former PSPCL Senior Divisional Officer Sanjeev Prabhakar and Ludhiana-based builder Amit Garg. The arrests followed a comprehensive vigilance inquiry which concluded that the officials conspired to establish a 66 KV power sub-station inside Basant City, a private residential colony in Ludhiana, using 10 crore rupees of public revenue in violation of established regulatory frameworks.
“The probe into the case had been going on since 2021 and a FIR was lodged this year,” a Vigilance Bureau official stated while confirming the timeline of the operational crackdown.
Investigators established that Chaudhry, who retired from his post in 2017, and Prabhakar, who recently retired as a deputy chief engineer, bypassed institutional guidelines to clear the project using departmental funds. According to state electricity board protocols, the financial obligation for constructing and installing localized power infrastructure rests entirely with the private colony developer rather than the state utility.
The formal inquiry concluded that the public officials intentionally acted in connivance with the developer to transfer those corporate expenses onto the state exchequer. All three individuals remain in custody pending formal judicial processing.
