Jammu: The Jammu and Kashmir Anti-Corruption Bureau (ACB) has registered two cases against Rakesh Sharma, the former Managing Director of J&K State Handloom Development Corporation Ltd., following the outcomes of a preliminary enquiry.
The cases involve serious allegations of corruption and irregularities in appointments.
Case 1: Corruption in Procurement of Handloom Machinery
The first case, registered as FIR No. 11/2024 at the ACB Police Station in Jammu, revolves around allegations that J&K State Handloom Development Corporation Ltd. was allotted ₹6 crore for the procurement of handloom machinery for a project in Samba. Instead of acquiring genuine handloom machinery, Sharma allegedly procured Airjet looms, which do not fall under the handloom category, in exchange for substantial commissions from the manufacturers, particularly M/S Shree Tex Engineers based in Palghar, Maharashtra.
The enquiry revealed that the corporation had initially floated a Notice Inviting Tender (NIT) for the procurement of 10 looms, which saw the participation of five firms. The lowest bid was offered by M/S AAR AAR Enterprises, Panipat, quoting a price of ₹12.25 lakh plus GST per loom. However, in a suspicious move, the corporation canceled the tender process midway and procured six looms from M/S Shree Tex Engineers at a significantly higher cost of ₹96.80 lakh plus GST, thus causing a substantial loss to the state exchequer.
Case 2: Backdoor Appointments and Arbitrary Promotions
The second case, registered as FIR No. 12/2024, pertains to allegations that Rakesh Sharma, during his tenure as Managing Director, engaged in backdoor appointments and arbitrary promotions within the corporation. It was found that Sharma approved the appointment of 14 individuals without following the due process of advertising the posts, thereby conferring undue benefits upon the appointees.
Further investigation revealed that Sharma made large-scale promotions within the corporation, many of which were unauthorized. Of the 58 promotions recommended by the Departmental Promotion Committee (DPC), an additional 137 promotions were made by Sharma without the DPC’s recommendation or adherence to the rules governing vacancies. Some promotions were given to employees who had not completed the mandatory three-year service period, while others exceeded the sanctioned strength of the corporation.
The ACB is continuing its investigation into both cases, which highlight significant misconduct and abuse of power by the former Managing Director, causing substantial financial losses to the state and undermining the integrity of the corporation.