Delhi Govt Fails to Catch Culprits in DPS CGHS Corruption Case
DPS Cooperative Group Housing Society (DPS CGHS or DPS Housing Society), Plot No. 16, Sector 4, Dwarka, Phase I, New Delhi 110 078.
Although DPS CGHS is facing multiple government inquiries for crimes and corruption, the government has failed to arrest and punish the culprits.
August 19, 2018
By Rakesh Raman
I have filed formal complaints against the following:
1. Registrar Cooperative Societies (RCS) of the Delhi Government and other officials of RCS office who failed to take action in the DPS CGHS corruption case
2. Past and present managing committee (MC) members of DPS CGHS and their accomplices
3. Delhi Development Authority (DDA) officials who are colluding with DPS CGHS MC members in an illegal construction / repair project in the Society building
- The estimated corruption money in the DPS CGHS corruption case is about Rs. 20 crore and the names of at least 25 persons and a few private firms appear in the official documents related to corruption.
- In the initial inquiries by the RCS office, the present MC members have formally admitted in writing that corruption / fraud has been happening at DPS CGHS. But strangely the RCS office has not dismissed the MC to start the corruption inquiry.
- The criminal activities of the past and present MC members of DPS CGHS include corruption, fraud, cheating, bribery, intimidation, illegal surveillance, breach of privacy, illegal car parking, labour / human rights violations, illegal appointment of vendors, environmental damage, defiance of court orders, obstruction of justice, and so on.
- While the MC members of DPS CGHS are facing a number of formally documented judicial and government-instituted inquiries (see the exhibits at the bottom of this document) for their criminal activities, it is an established fact that the MC members have been committing a number of crimes in the Society.
- The MC members and their accomplices have not yet been arrested and punished because of general administrative inefficiency. There is also a strong possibility that the accused MC members are bribing the government officials to circumvent the law and avoid the inquiries.
- In response to my complaints, the vigilance inquiries have started against the corrupt officials of RCS and DDA who have been supporting the corruption at DPS CGHS.
- As the MC members of DPS CGHS are blatantly defying the law in a number of criminal cases that they are facing, their arrest and custodial interrogation have become necessary to stop the incidents of crime.
- The current DPS CGHS MC members who need to be immediately interrogated by the police, anti-corruption departments, and other law-enforcement agencies are:
President: Neeraj Kumar Vaish
Vice President: R. Balasubramanian
Secretary: M.N. Sampathkumar
Member: Ms. Leela Swami
Member: Sandeep Taneja
Member: Manguram Tyagi
Member: Ms. Naseem Afshaque
Progress in the Case
- While the RCS office and other anti-corruption departments have launched a number of corruption inquiries against the DPS CGHS MC members, the RCS office is still allowing the accused MC members to continue their illegal activities.
- In my letters dated July 25 and July 27, 2018, I had urged the RCS office that it should not allow the DPS CGHS MC to hold the planned Annual General Body Meeting (AGM) on July 29, 2018 because it will be an illegal meeting considering the fact that the DPS CGHS MC is facing the government inquiry ordered by the RCS office itself for financial and other irregularities.
- I also said in my above-stated letters that if the RCS office allowed this AGM / meeting to happen, it will be yet another act of complicity by the RCS officials to give an opportunity to the accused MC members of DPS CGHS to legitimize their illegal activities. But the RCS office did not stop the AGM – which once again shows that RCS officials are colluding with DPS CGHS MC members in the crime.
- It is learnt that Registrar J.B. Singh (IAS) at RCS office – who has been protecting MC members of DPS CGHS – has retired or about to retire. But his retirement will not give him any immunity in this case and he will be accountable even after his retirement.
- Similarly, if the new Registrar and other concerned RCS officials failed to take immediate action in this case in terms of termination of MC, they will be responsible for allowing corruption at DPS CGHS.
- It is also learnt that some politicians from at least 2 political parties are trying to protect the accused MC members of DPS CGHS. I am trying to know their involvement in this corruption case so that their names could be revealed.
- As this is a case of white-collar crime, only the circumstantial evidence in terms of non-compliance of different statutes should be enough to prosecute and arrest the culprits at RCS office, DDA, and DPS CGHS, as well as their internal and external accomplices such as fraudulent firms and rogue residents.
- I have approached different anti-corruption agencies to get the culprits caught in DPS CGHS corruption case. With its letter dated 19.6.2018, the Directorate of Vigilance (DOV) – which is the top department that conducts inquiries in corruption cases – of Delhi Government has informed me that it has initiated the inquiry against the Registrar and other officials of RCS office regarding corruption (in DPS CGHS case).
- In my letter dated July 2, 2018, I have requested DOV to publicly put on DOV website each and every step of the planned inquiry, names of the RCS officials who are facing this inquiry, names of investigation team members, all their verbal and written communications, and outcome of the inquiry at each step. A closed-door investigation will be meaningless.
- While the MC members of DPS CGHS are facing multiple corruption inquiries, they are still trying to cheat members / residents by taking money from them for an illegal FAR (floor area ratio) construction project worth crores of rupees. The project is being planned in connivance with corrupt DDA officials while the court has stopped FAR construction.
- The accused MC members of DPS CGHS are threatening residents to pay money to them for illegal FAR construction. As the MC members are blaming some residents who opposed FAR construction with allegations of anti-national activities and corruption, the threatened members have succumbed and paying lakhs of rupees to MC for illegal FAR construction.
- As I had also complained against the corruption of DDA officials, DDA has informed me with its letter dated 24.7.2018 that an inquiry under the directions of Central Vigilance Commission (CVC) has already been initiated against the officials responsible for corruption in Delhi group housing societies, including DPS CGHS.
- In its Annual General Body Meeting (AGM) that was held on 29.7.2018, the DPS CGHS MC members who behave like criminals openly threatened people who oppose them democratically. They also threatened opposing residents with police / legal cases, although the AGM did not have any locus standi because the MC is facing corruption inquiries.
- Some residents also had approached RCS to get the AGM of 29.7.2018 canceled. But it is learnt that a new Registrar said he will take time to understand the case before taking any action. The Registrar could have easily taken the records of corruption inquiries from his subordinates to stop the AGM, but he did not stop it. Thus, the new Registrar not only shirked his responsibility, but he also allowed corrupt practices to happen at DPS CGHS.
- The AGM of 29.7.2018 has gone null and void because of corruption inquiries against DPS CGHS MC members and also because the MC failed to circulate the Minutes of Meeting among all the members within 15 days of AGM. According to Rule 52 (2) of the Delhi Co-operative Societies Rules, 2007, “In case of co-operative housing society, the minutes shall be circulated to all members within fifteen days of general body meeting.” Since the MC failed to circulate the minutes within 15 days, the said AGM of 29.7.2018 stands infructuous / canceled.
- As an ordinary resident member, journalist, and social activist, I have approached different government departments and top law-enforcement agencies, urging them to investigate this extreme case of lawlessness at DPS CGHS. Most departments have responded positively to my requests.
Attempts of DPS CGHS MC Members to Attack and Harm Me
- In order to thwart my anti-corruption efforts, during the past couple of years the DPS CGHS MC members have sent multiple threats to me. These include false police complaints against me, threats of physical harm to me, expulsion notices, legal notices, and slanderous attacks on my social as well as professional status.
- Ironically, the current DPS CGHS MC members – whose names appear as accused in a number of government records like history-sheeters – have sent me a number of hollow, ‘copy-paste’ legal notices claiming that I have defamed them. This is the height of absurdity and their action is laughable. Instead of facing the government inquiries honestly and getting their names cleared from government records, they are trying to threaten me with legal notices saying that I should stop writing about their corruption in my news articles.
- The DPS CGHS MC members are behaving like ganglords who are using the frivolous legal notices and false police complaints against me as threat weapons to silence me and suppress my voice. They are also hatching criminal conspiracy along with a few other residents of the Society to harm and defame me.
- I am not deterred and I will keep fighting truthfully against their crimes and corruption to get the culprits arrested and imprisoned. In fact, during the last about one year, the criminal MC members of DPS CGHS have lost at least two legal cases that I have been pursuing against them.
- For example, the criminal DPS CGHS MC members lost a legal case against me at RCS office / court to get me expelled from the Society. The MC members had filed the case to attack my freedom of expression and press freedom as I have been exposing their corruption through my news articles. They could not get me expelled from the Society and lost the case at RCS court, although they claimed that the majority of members had supported my expulsion. The “majority” argument of DPS CGHS MC members is an absolute nonsense, as majority cannot circumvent any law. Also, the majority of members at DPS CGHS are accomplices in the crimes that MC is committing. And falsehood needs majority, truth can stand alone.
- Their loss of case at the RCS court also proves the fact that my campaign against the corruption of DPS CGHS MC members is right and valid, as corruption has been happening at DPS CGHS. While the MC members have lost the case, they need to compensate me for the mental, physical, and financial disturbance that they deliberately inflicted upon me.
- Similarly, the MC members lost a case of labour rights violation in the labour court that I was pursuing to get justice for the poor security guards / employees of the Society who were illegally terminated by the cruel DPS CGHS MC members. This again proves the fact that DPS CGHS MC members have been committing all sorts of illegal activities.
- Although the outcome of corruption cases that I have filed against the DPS CGHS MC members is getting delayed, they are soon expected to be arrested and jailed as they have lost the other cases stated above. The DPS CGHS MC members are digging their own graves by continuing their illegal activities. The members / residents who are supporting the MC members will also face the legal consequences.
- As I have been fighting against the corruption of DPS CGHS MC members and they have been defaming me and attacking my press freedom, it has adversely affected my other professional responsibilities including the editorial work and the social services that I offer to underprivileged people through my charity organization RMN Foundation. For this continuing loss to me, I am claiming Rs. 10 crore (Ten crore rupees) as compensatory damages / punitive damages from the DPS CGHS MC members who are personally responsible for this crime. I will soon take this case to the right forums.
Important: This report also includes 18 different exhibits (given at the bottom of this report) from official / government records which clearly show that rampant corruption and criminal activities have been happening at DPS CGHS. But the law-enforcement agencies have failed to arrest and interrogate any person involved in the crimes.
Corruption Inquiry in DPS CGHS
As there have been a number of cases of corruption and illegal activities at the DPS CGHS, the office of the Registrar Cooperative Societies (RCS) of the Delhi Government had ordered an inquiry under Section 61 of the DCS Act, 2003 to investigate the “financial and other irregularities” at DPS CGHS.
The inquiry – ordered in January 2018 by RCS office – was in response to a legal complaint filed last year by a group of DPS CGHS members who have demanded the removal of the current MC because of its financial crimes and other criminal activities.
Moreover, in September 2017, I had sent a detailed report on DPS CGHS corruption to J.B. Singh, Registrar Cooperative Societies (RCS) and earlier to his predecessor Shurbir Singh. The report included specific cases of corruption, names of people, and document references with dates. I had sent the same report to Central Vigilance Commission (CVC).
Consequently, with its letter dated January 25, 2018, the RCS office had ordered the inquiry under Section 61 of the DCS Act, 2003 to investigate the “financial and other irregularities” at DPS CGHS.
The inquiry is supposed to cover the entire period of the Society’s existence as the Society records show financial misappropriation and misuse of authority by the successive managing committees (MCs) that prevailed right from its inception till today.
The total amount lost in corruption (that is still continuing under the present MC members) is crores of rupees and names of nearly 25 people including MC members appear in official records that show financial and other irregularities. The inquiry is supposed to arrest the culprits and recover the money lost in corruption.
Clean House Social Service
Today, millions of common residents in Delhi are victims of the terror unleashed by the corrupt managing committee (MC) members of different cooperative group housing societies.
In order to help the suffering residents raise their voice against the growing corruption and injustice in housing societies, I have been running a community-driven free online social service under the banner “Clean House”.
It works as an interface to inform the government departments and law-enforcement agencies in India and abroad about the cases of corruption and other criminal activities happening in housing societies.
If you want “Clean House” to report about the corruption and illegal activities in your housing society, you may please contact me with relevant documents and details.
The present MC members have admitted that corruption / fraud has been happening at DPS CGHS. But in order to save their own skin, the present MC members are trying to obstruct the inquiry deceptively by putting the blame on previous MCs.
According to a letter dated January 14, 2018, the DPS CGHS MC had cleverly constituted a sub-committee of some ordinary residents to investigate an old “case of fraud” involving Rs. 55 lakh. The letter states that the General Body approved the suggestion of a resident Dilip Rozekar, and Vipul Khullar, Ravinder Sharma, and Madhukar Akhilesh volunteered to be the part of this sub-committee.
Along with a number of old MC members who are allegedly involved in the said fraud, the names of two external vendors (M/s. Builtwell and M/s. Reliable Transmission) have been mentioned in the MC’s letter.
It is surprising to note that instead of allowing the comprehensive probe planned by the RCS office into the financial irregularities of the DPS CGHS, these four residents / members (Dilip Rozekar, Vipul Khullar, Ravinder Sharma, and Madhukar Akhilesh) are interested only in one case of corruption worth Rs. 55 lakh which is also supposed to be covered in the RCS inquiry. This sub-committee that was supposed to investigate corruption at DPS CGHS has not released its findings, although more than seven months have elapsed since its formation.
The MC – which works in a totally dishonest manner – did not even reveal the progress of the local inquiry. The investigation agencies must question these residents / members about their competence to hold such a financial inquiry as well as their links with the MC members to cover up the inquiry already planned by the RCS office. There is a possibility that these four residents / members have been bribed to stop the local inquiry that they had planned to hoodwink the other members and authorities.
The formation of this perfunctory sub-committee is a cover-up attempt by the MC to deceive the Society members as well as authorities while the total corruption amount is not just Rs. 55 lakh that is stated in MC’s letter. Rather, the estimated amount of money lost in corruption is crores of rupees while corruption has been persisting in DPS CGHS for at least 15 years and it is happening even today under the current MC.
Collusion of RCS Office with DPS CGHS MC
I have separately submitted the details, document references, and dates of corruption cases at DPS CGHS in the RCS office, CVC office, and other law-enforcement agencies.
Since the RCS office has not dismissed the present MC members from office despite their visible corruption, they are still misusing their authority to thwart the investigation in order to continue their corrupt practices.
With its letter dated 12.04.2018 (Subject: Chronic Corruption case of DPS CGHS), the RCS office informed me that DPS CGHS has filed an appeal under Section 115 (1) of DCS Act, 2003 against the inspection ordered by the RCS office under Section 61 of DCS Act, 2003 at DPS CGHS.
In response to RCS letter, on May 7, 2018 I asked Registrar J.B.Singh to start the pending investigation because the appeal filed by DPS CGHS MC amounts to defiance of law and obstruction of justice as the DPS CGHS MC is refusing to show its improper records to the competent authority such as the RCS office. Also, the MC’s attempt to oppose the RCS inquiry is an admission of guilt as the MC members want to conceal their criminality.
While the inquiry was getting inordinately delayed, I sent another mail on June 6, 2018 to Registrar J.B.Singh saying if the RCS failed to dismiss the DPS CGHS MC and start the inquiry by June 8, 2018, I will approach the higher authorities and law-enforcement agencies against all the concerned RCS officials in order to seek relief under the Prevention of Corruption Act. But the RCS office did not start the inquiry and did not give any reason for delay in starting the inquiry.
Since the Registrar J.B.Singh and other RCS officials did not follow the official rules and ignored their official responsibilities in order to secretly give undue benefit to the accused MC members of DPS CGHS, it is a clear case of corruption. Plus, the bureaucratic inefficiency of J.B.Singh and his staff is also a form of corruption.
According to the Vigilance Manual 2017 of India’s top anti-corruption organization Central Vigilance Commission (CVC), corruption is manifested in various forms such as bribery, nepotism, willful action or willful inaction to benefit someone or to deny benefit to someone known or unknown.
It also states that corruption includes cases of favoritism and failure to follow laid down processes leading to unintended benefit to someone or denial of benefit to the deserving.
Going by this definition of corruption, the CVC and other law-enforcement agencies such as Central Bureau of Investigation (CBI) must initiate inquiries against Registrar J.B.Singh and other RCS officials. Government and law-enforcement agencies must also direct the RCS to take stern actions against the corrupt MC members and others who operate in this housing societies racket.
It is strange to note that the Registrar has decided to delay / scuttle the corruption inquiry ordered by his own office against the accused DPS CGHS MC members who are controlling public money worth crores of rupees in a totally shady, opaque manner.
An appeal by the accused MC members cannot – and must not – stop the RCS office from starting and completing the inquiry because the alleged fraud involves public money – including my own money as a member of the DPS CGHS.
The corruption case at RCS office against DPS CGHS MC members cannot close simply because they have filed an appeal.
The delay in starting the inquiry manifests the fact that the Registrar as head of the department and other concerned RCS officials are working under the undue influence of the accused MC members of DPS CGHS.
As the money under the said investigation is crores of rupees, the possibility of bribe to RCS by the DPS CGHS MC members cannot be ruled out. It is more plausible because the Registrar J.B. Singh and his predecessor Shurbir Singh have been the target of a Delhi Assembly Committee probe for an alleged Rs. 100-crore scam in Delhi Nagrik Sehkari Bank.
Most would know that the RCS office has a long history of corruption and reportedly many of its officers have been caught even by the Central Bureau of Investigation (CBI) in corruption cases. You can read about Case 1 and also Case 2 and a recent case that is being investigated.
Fraud Cases at RCS Office
It is not only the the DPS CGHS corruption inquiry that Registrar J.B. Singh has dumped dishonestly, but similar nefarious acts have been happening at an alarming frequency under J.B. Singh in many other cooperative group housing societies of Delhi.
For example, the members of Bhagwati CGHS Ltd. in Dwarka lament that the RCS office had ordered an inquiry into the financial fraud in their Society, but despite their repeated representations to the Registrar, the inquiry is not getting started.
Similarly, when the residents of R. D. Apartments in Dwarka failed to get relief from the RCS office in an illegal construction case in their Society, they were forced to go to the Delhi High Court in order to seek justice.
The RCS office is not only stopping the corruption inquiries ordered by its own office, but it has brazenly ignored the inquiries ordered even by the CVC.
For example, the Directorate of Vigilance of Delhi Government – under CVC’s direction – had ordered the inquiry through the RCS against the MC of DPS CGHS. But the inquiry was stopped without giving any reason.
It is believed that the MC members of DPS CGHS influenced the RCS officials to get the inquiry scuttled unscrupulously. Bribery cannot be ruled out to get the inquiry stopped.
CVC Inquiry Letter References:
RCS: F.47/Coop./1350/GH/SW/2011/7051 dated 4.5.2011
Directorate of Vigilance: F.27/2/2011/DOV/1080 dated 15.2.2011 forwarded by CVC
CVC: O.M. No. 1716/10/8/104428 dated 01.10.2010 and O.M. No. 1716/10/8/117161 dated 24.01.2011
Thus, RCS office has become a symbol of corruption in Delhi and the corrupt MC members of housing societies are thriving under the illegal protection of RCS.
Both Kejriwal and Baijal are fully aware of RCS corruption but they have turned a blind eye to it. They keep sending people’s complaints from one office to another like a post office, but Kejriwal and Baijal never take administrative decisions.
Finally, the aggrieved citizens of Delhi are left with no other option but to approach the courts. But if courts have to do everything, why do we need Kejriwal and Baijal? The administrative systems have totally collapsed in Delhi.
The RCS and DDA examples show that bureaucratic and political corruption has become a pain in the neck for commoners in India. A new “Freedom in the World 2017” report – released by Freedom House, a Washington-based independent watchdog organization – highlights rampant political and bureaucratic corruption in India. It reveals that corruption has a negative effect on government efficiency and economic performance.
“Though politicians and civil servants at all levels are regularly caught accepting bribes or engaging in other corrupt behavior, a great deal of corruption goes unnoticed and unpunished,” the report said in its findings.
Similarly, global anti-corruption organization Transparency International has lowered India’s rank from last year’s position of 79 to 81 this year. According to the Transparency data, India with a poor score of 40 is more corrupt than countries such as China, Jordan, Saudi Arabia, and Mauritius.
The sorry plight of people in Delhi indicates that India has already become a politically unstable banana republic with rampant lawlessness, corruption, and exploitation of the ordinary citizens. It is expected that soon India will formally appear in the list of banana republics such as Botswana, Guatemala, Nigeria, Zambia, and Cuba.
If the situation is not controlled immediately, it is expected that soon international sanctions will also be imposed on India because of government’s failure to stop increasing crime and corruption.
Evasion of Corruption Inquiry at DPS CGHS
The managing committee (MC) members of DPS CGHS are desperately trying to evade the inquiry ordered by the RCS office to investigate the “financial and other irregularities” that have been happening in the Society for years. The total money lost in corruption is estimated to be crores of rupees.
In order to avoid the corruption inquiry ordered by RCS office in January 2018, the accused MC members held a hurriedly called Special General Body Meeting (SGBM) on 18.02.2018 which was largely attended by a group of rogue members who are generally bribed by the MC members to get all illegal decisions approved. The fraudulent way in which elections and GBMs are held at DPS CGHS is another big scandal about which RCS office has been repeatedly informed. But as usual RCS office did not act against the MC members.
The desperation of MC members – who are facing a number of inquiries for illegal activities – is evident from the fact that they did not circulate the Minutes of the SGBM of 18.02.2018 among the Society members and directly sent totally false information to the RCS office about the SGBM with a malafide intention to scuttle the planned inquiry.
Although the MC members have indicated that the majority of members are not in favor of the inquiry, they failed to circulate among the Society members the list of members who were present in the SGBM of 18.02.2018 and the list of members who opposed or favored the inquiry. This is a total fraud and a criminal attempt to cheat the other Society members and deceive the RCS officials.
While this is a case of “financial and other irregularities” as stated in the RCS inquiry order, even one Society member can seek financial details as the MC members are controlling members’ money. Majority is not required to accept or stop the inquiry ordered by a competent judicial authority like the RCS office.
The attempt by the accused MC members to stop the RCS inquiry manifests the fact that they want to hide something that can incriminate them. RCS office must not entertain their appeal to stop the inquiry. Rather, the RCS office must dismiss the MC and start the inquiry.
While the MC members and other rogue members, who are acting as accomplices in crime, are trying to block the RCS inquiry, it is a case of obstruction of justice for which the MC members and their supporters must be prosecuted.
As they are refusing to reveal the details of financial misappropriation, the RCS office must also recommend for the judicial / police custody of the MC members of DPS CGHS and others who are supporting them.
In order to carry out the planned inquiry, the RCS office must immediately dismiss the DPS CGHS MC and appoint an administrator in the Society to manage the day-to-day work.
Illegal FAR Construction and Fraud
Although the RCS inquiry is about their financial irregularities, astonishingly the accused MC members are still trying to cheat Society members by asking each of them to pay lakhs of rupees for an illegal construction / repair project worth crores of rupees under a dubious floor area ratio (FAR) scheme.
While DPS CGHS MC members know that recently Delhi High Court has stopped FAR construction in a housing society because of its harmful pollution and other factors, the DPS CGHS MC members are still pursuing FAR construction because it will give them another opportunity to swindle public money. The estimated cost of the project is Rs. 15 crore.
The DPS CGHS MC members have also indicated that they will bribe the DDA officials through a fraudulently appointed architect firm for getting approvals for the illegal FAR construction.
As per the contract document dated July 16, 2017, the MC President Neeraj Vaish even agreed to pay a huge Rs. 8 lakh as “liasioning fee” (another term for bribe) to the architect firm for getting approvals from DDA and other authorities. One fails to understand if the MC’s project proposals / drawings are genuine and legal, why it is paying Rs. 8 lakh as liasioning fee for getting the statutory approvals.
As I had complained against the corruption of DDA officials, DDA has informed me that an inquiry under CVC directions has already been initiated against the officials responsible for corruption in Delhi group housing societies. The inquiry will particularly investigate the corruption in FAR projects.
The FAR plans of housing societies clearly violate the Unified Building Bye Laws (UBBL) and other regulations, but DDA gives approvals for such illegal projects. In fact, DDA is deceptively helping the corrupt MC members to make their proposals in such a way that they could be cleared even when the violate the laws.
As corruption is rampant in DDA office, instead of giving approvals after a physical inspection of the site and checking the objections by residents, DDA approves FAR construction plans based on mere undertakings given by a society’s corrupt MC members and the architect. In other words, the MC members and architects bribe the DDA officials to get approvals on their illegal construction plans.
The MC members are also supposed to give an assurance that FAR construction will not disturb even a single member in the Society because the disturbance will violate Article 21 of the Indian Constitution, which assures the citizens of India the right to a healthy, peaceful, and clean environment.
Obviously, DDA is supposed to check the written permission of all the Society members before giving FAR approval in an occupied group housing society. The majority in a housing society cannot take FAR decision because the Article 21 of the Indian Constitution protects the rights of each and every citizen. But DDA ignores the law and brazenly ignores the Indian Constitution while giving FAR approvals.
Moreover, FAR construction without the explicit, written consent of every member in the occupied group housing society is also a case of willful encroachment by the MC members which is a punishable offence. While DPS CGHS MC does not have permission of all the members for FAR construction, DDA cannot give FAR permission. And if DDA gives permission for FAR construction at DPS CGHS, it will be totally illegal.
The FAR construction is also breaking a number of other laws such as the Unified Building Bye Laws (UBBL), the Delhi Apartment Ownership Act, Delhi Fire Service Rules, National Building Code, and many other regulations.
The DDA officials are supposed to know all these legal intricacies. But they are giving FAR construction approvals without following the right procedures to give undue benefit to corrupt MC members and builders. Similarly, corruption is also happening in Delhi Fire Service (DFS) and Delhi Urban Art Commission (DUAC) which are blindly giving approvals for FAR construction.
Corruption and Illegal Activities Under the Current DPS CGHS MC
Note: The corruption money will be recovered from the guilty MC members and others with 18% annual interest rate that the MC says it wants to take from the defaulting members.
Corruption and illegal activities under the current MC members: Neeraj Kumar Vaish, R. Balasubramanian, M.N. Sampathkumar, Ms. Leela Swami, Sandeep Taneja, Manguram Tyagi, Ms. Naseem Afshaque:
Fraudulent Appointment of Architect Firm: In order to cheat the residents and extort money from them for an illegal construction / repairs project worth about Rs. 15 crore, the current MC members hired an architect firm Vivek & Arti Architects fraudulently without following any statutory purchase procedures. The firm was hired before releasing the advertisement for the contract.
The same firm was paid “liasioning fee” (another name for bribe) worth lakhs of rupees to pay to DDA and other government departments for taking approvals. Now the MC claims that it has paid over Rs. 30 lakh to DDA for the illegal construction project while DDA is not supposed to approve the project. Click here for details.
Corruption in Car Parking: The Delhi High Court has ruled that only one car per flat will be allowed in housing society parking lots. But the DPS Housing Society MC has brazenly decided to ignore the court orders as well as the Society norms to allow about 40 members (out of a total of 90 members) to park multiple vehicles in the Society building.
On average, a car parking space covers about 100 sq. ft. and the price of one car parking space is an estimated Rs. 500,000. If the current MC has allowed 40 members to park their additional vehicles under a secret deal, the corruption money in this case is estimated to be Rs. 2 crore. Moreover, the accused MC members have put the lives of hundreds of residents to fire risk by allowing illegal car parking which is obstructing the movement of fire brigade. Click here for details.
Corruption in Security Contract: The current MC members illegally terminated the services of a group of security guards who were employees in the Society. It is not only a case of labour rights violation and breach of contract, but also a case of extreme corruption. After terminating the jobs of Society’s security employees, the MC members hired new security guards through a private agency without GBM approvals and without following the financial process while the annual security contract is worth lakhs of rupees.
As it was difficult for the MC members to take bribes from the terminated security guards who were employees in the Society, they hired a private agency fraudulently. In order to hide their crime, the MC members are now showing some concocted documents suddenly inserted in the Society records about security guards’ case.
The MC members also threatened the terminated guards who have filed a case against them in the labour court. As it was a crime, the MC members lost the case in the labour court and paid nearly Rs. 2 lakh to the harmed guards as settlement amount. But the MC has still not informed the members how it could settle the case with security guards while the MC members are not supposed to use Society funds for paying the settlement amount for their own crimes. Click here for details.
Society Election Fraud: The current as well as previous MCs have been offering bribes to voting members in different forms to win elections and get voting support in GBMs to show their majority. The bribes include Society’s common space worth lakhs of rupees to allow illegal car parking to some members, permission for construction alterations in some flats to increase the value of flats, cash worth lakhs of rupees from Society funds to individual members for frivolous activities, and so on.
Thus, the MC members have formed a criminal gang with the help of these corrupt voting members, and together they show their false majority in GBMs, loot public money, and threaten members who oppose their criminal activities.
So, the elections and GBMs which are based on bribes have become a total fraud and the majority argument for any decision in GBMs is invalid and baseless at DPS CGHS. Click here for details.
Corruption and Connivance: The current MC members were accepting the corruption of previous MCs without making any formal legal attempt to recover the money lost in corruption. As the total money lost in corruption at DPS CGHS is estimated to be crores of rupees (as shown in the MC’s own documents), there has been a criminal nexus between different MC members to protect each other while swindling public money. It appears that past and present MC members have been secretly sharing the booty and obstructing investigations. Click here for details.
Illegal Surveillance: Now, the DPS CGHS MC members are demanding money from residents for using a third-party security App. The App used by the security guards at the Society gate collects the personal information such as private data and photographs of visitors including women. This information of visitors is presumably sent to an external party which can misuse the information without informing the individuals. The whole operation is being conducted in a totally opaque and fraudulent manner. Click here for details.
Repairs Corruption: In the last building repairs work, M/s Shivaji Bhera who offered to do the repair work for just Rs. 4 lakh was removed to hire a firm M/s SP Repcon of Mr. Satpal Sharma who was awarded the same repair contract for more than Rs. 30 lakh. Although the repair work is not complete even today (after almost 10 years), the contractor was paid the money by the then DPS CGHS MC (those MC members are again leading the repairs / FAR construction even now). These MC members are facing CVC / DOV / RCS corruption inquiry. In this particular repairs case, the estimated corruption money as on date is over Rs. 1 crore that needs to be recovered from the MC members. Click here for details.
Water Tanker Fraud: There is no proper record for procuring water tankers and measuring the quality and quantity of water bought from external vendors. If the DPS CGHS MC was showing Rs. 6,000 per tanker in account books for a water tanker, its actual cost was Rs. 2,000 only. Assuming 4 water tankers were procured in a day, the corruption money involved in a day was Rs. 16,000 and the corruption money in a month was about Rs. 5 lakh. If, say, water tankers were procured for 8 years, the total corruption money that MC members swindled was about Rs. 5 crore. Despite a CVC / RCS inquiry in this case, the MC has failed to show the financial documents related to water procurement. Click here for details.
Corruption in Illegal Permission to Vendors: The DPS CGHS MC has not followed any procedures to give the space (precious real estate) in the Society building to external vendors such as Amul Milk Booth vendor, Airtel, Jio, and a security app company “All Is Well” while it could have transparently auctioned the space / contract to earn more money for the Society. The accused DPS CGHS MC members have presumably taken underhand money from these vendors to give them access without the approval in GBM. The total corruption money involved over the years in this case is estimated to be Rs. 5 crore. Click here for details.
Extent of Corruption and Threats at DPS CGHS
The financial records of the Society carry numerous discrepancies. The RCS office has ascertained this fact, as it had ordered the inquiry under Section 61 of the DCS Act, 2003 to investigate the “financial and other irregularities” at DPS CGHS.
Moreover, many financial documents are either missing from the Society records or have been criminally destroyed by the MC members who have full control of the records. But the auditing firms / persons have been clearing the account books without any objections and without any effort to get them recovered.
Despite repeated complaints from the Society residents / members during the past about eight years (2010-2017), the RCS office of Delhi Government has failed to take any action to prevent corruption and safeguard the interests of affected Society members / residents.
As a result, the innocent people – including even women and senior citizens – are being threatened and intimidated by the MC members because they have tried to raise their voice against the misdeeds and improper activities of the MC members.
Now the MC members are not only using abusive language against the residents who oppose them in a civilized manner, but they have also threatened to use brute force against them if they tried to raise their voice against the criminal activities of the MC.
As most residents are extremely terrified by the violent behavior of the MC members of the Society, they have decided to stay quiet or succumb under DPS CGHS MC members’ threats.
Recently, for example, the MC members threatened a previous MC member who – it is learnt – works after retirement as a civil engineer / contractor in Jammu. It is believed that this member who was earlier working as a government engineer has assets disproportionate to his known sources of income.
When MC members threatened him, he succumbed and decided to participate in MC members’ criminality. The MC members also claim that he has told them that I (Rakesh Raman) have “wrongly used his signatures.” This is mentioned in MC’s letter about AGM on 29.7.2018. As this is a case of criminal conspiracy against me by the MC members and the threatened man (a previous MC member), the case needs to be fully investigated.
Similarly, another member from Jammu & Kashmir (J&K) who was earlier opposing FAR construction was threatened by the accused DPS CGHS MC members with a case of anti-national activities. According to an MC letter, he has also yielded and decided to pay money to MC. His name also appears in MC’s letter about AGM on 29.7.2018.
“Shri: Wazir & Shri: Kaul, has reconciled all their differences, with the MC, DPS CGHS,” the MC issued this statement, instead of saying that these two members have succumbed to MC members’ threats. The statement is documented in MC’s letter dated July 7, 2018 regarding AGM on 29.7.2018. Surprisingly, both these members are among the petitioners in the case filed in the RCS office for getting the DPS CGHS MC dissolved. Then how can they suddenly join hands with the MC which they want to get removed?
If these are not criminal intimidations by the DPS CGHS MC members to extort money from residents who oppose them, the government inquiry must also investigate the cases of “disproportionate assets” and “anti-national activities” of these two members (Wazir and Kaul) who belong to Jammu & Kashmir (J&K).
Similarly, another woman member – who has been opposing the illegal activities of the present DPS CGHS MC – is being threatened by the MC members with a legal case against her in order to suppress her voice. Earlier, these MC members had threatened the security guards who had filed a case against them in the labour court. I am also getting repeated threats from MC members. The MC members also issue regular threats to terrorize other members who oppose their illegal activities.
As the DPS CGHS MC members are behaving like criminals and threatening other members, most are so scared that they have started supporting the illegal activities of the MC members and paying them lakhs of rupees.
Now, I am fighting this battle almost alone to expose the criminal activities in the DPS CGHS and the terror being inflicted by the MCs on innocent residents – men, women, and children.
Acts of Corruption
By definition and application, various anti-corruption and maintenance of financial transparency laws are applicable in different cases of corruption at DPS CGHS.
These include the Prevention of Corruption Act, Indian Penal Code (IPC), and the Right to Service legislation which is aimed to reduce corruption and to increase transparency and accountability. After a thorough inquiry, the Benami Transactions (Prohibition) Act, 1988 and Disproportionate Assets (DA) laws may also apply in some cases.
Although massive corruption is happening under the current MC members, they argue in an irrational manner that they are not responsible for the past corruption that has happened during the tenures of previous MCs.
This is an absurd argument. In fact, a new DPS CGHS MC is equally responsible for the corrupt practices of the previous MCs if the new MC has accepted the financial irregularities of the previous MCs without any formal and transparent administrative and legal action against the previous MCs to recover the money lost in corruption – which is now in crores of rupees.
If the new MC has not taken any legal action against the corrupt previous MC and the corruption money is not recovered, it shows the current MC’s complicity in crime. Suppose, for example, if a case of misappropriation of funds happened in 2006, all the subsequent MCs are responsible for it if they have not initiated any formal legal proceedings overtly to recover the lost money in such a case.
According to global anti-corruption organization Transparency International, corruption thrives on low level of transparency. And there is no transparency in financial transactions at DPS CGHS – so much so that the Society even flouts the government orders to maintain transparency. Now the DPS CGHS MC has blatantly refused to show its financial and other records in the corruption inquiry ordered by the RCS office. This is a manifestation of the fact that rampant corruption is happening in the Society.
Moreover, DPS CGHS MC members mislead the residents and authorities by saying that the Society’s accounting books are in order. They do not want to understand that the accounting books of all corrupt organizations are always in order. The accounting plus-minus calculations will always be correct because you are simply subtracting the expenses from the income. One should never trust the data given only in customary accounting books.
Actually, it amounts to corruption when the supporting documents are missing from the accounting books and transparent purchase procedures are not followed, which is the case at DPS CGHS. These lapses are the proofs of corruption and fraud in white-collar crimes, including financial and economic offences.
As a member of the Society, I have also been formally asking the MC members about certain financial and other details related to transparency of operations and expenditure procedures, but they could never give me those details.
The MC’s reply to all inquiries must include statutory financial documents, names / addresses of vendors, vendor selection procedures, payment terms, all related vouchers, expenditure processes, etc. that are required to be produced in response to the inquiries. Only the income-expenditure statements and balance sheets will not satisfy any inquiry, as these bland statements / sheets conceal more than what they reveal.
Background of the Case
Although there has been blatant misappropriation of Society funds, the past and present managing committees (MCs) never tried to follow the statutory procedures. Here it is imperative to state that all the financial statements are meaningless if these are not supported by all the supportive documents and vouchers.
All these financial details and purchase processes should be available on Society’s website, but the MC has not revealed such important financial information through the website. Rather, the accused MC members are misusing their authority to put only selective information on website that promotes their own interests and threatens the dissenting members.
The MC members must know that all the corrupt companies of the world keep their account books clean, but still they are caught and punished because of various financial discrepancies.
Moreover, there should be “formal approvals” from the Society members and visible adherence to statutory financial requirements as prescribed under the law and government-specified norms for financial transactions.
Despite my repeated requests, different MCs have failed to produce such documentary support to justify the expenses running into hundreds of thousands (or crores of rupees).
Now, the MC members are getting excessively vindictive against me because I have exposed their corrupt practices, as they tried to make easy money in an illegal building extension / construction project under an ambiguous FAR (floor area ratio) scheme of the government.
Under residents’ protests, the previous MC – including M.M. Shukla, Neeraj Vaish, Ms. Geeta Gautam, Ms. Leela Swami, R.K. Saggi, K.L. Narayanan, H.L. Kaul – had to take back its decision and this FAR construction project was stopped.
From March 2017, the new MC (which is actually controlled by the old members who are facing corruption charges in a CVC-DOV-RCS inquiry) is again trying to start the massive building extension and construction project worth crores of rupees, although the Delhi High Court has stopped such construction.
In order to extort public money for FAR construction, the current MC members are misleading the other members by circulating a totally irrelevant ruling about the majority decisions in a housing society. The majority rule cannot apply in FAR construction because it poses a risk to residents’ lives with dust and noise pollution.
The criminality of DPS CGHS MC members has gone to such an extent that they openly claim they are collecting crores of rupees from members for a construction / repair project – which is, in fact, illegal. Although the MC members are showing it as a private, voluntary project of some members, they are not supposed to carry out any private project by misusing their positions as MC members. And they cannot plan any private project in the Society building without explicit, written permission of all the members.
If the DPS CGHS MC members are planning such an illegal construction / repairs project, all the members who have paid money are part of the criminal act and must be prosecuted and punished according to the law. Also, their money must be forfeited and deposited in Society’s account.
Moreover, the MC is not supposed to take private decisions in the Society’s General Body Meetings (GBMs). The present and previous MC’s have been using flawed methods of conducting Annual General Meetings (AGMs) and GBMs to justify their wrong decisions. I – as well as other members – have been repeatedly warning the MCs about this. But all such requests have been falling on deaf ears and MC members have been behaving like unruly dictators.
They are not following the Delhi Cooperative Societies rules to hold AGMs / GBMs. The RCS office, as usual, has ignored the complaints of the residents about the flawed AGMs / GBMs. The accused DPS CGHS MC members have now stopped showing even the minutes of the meetings to other members. For example, it has happened recently when the MC did not circulate the minutes of the AGM of 29.7.2018 to all members within 15 days, which is mandatory as per Delhi Co-operative Societies Rules, as stated above. Obviously, the RCS office must not accept this AGM and its minutes as they are invalid.
The MC members claim that they can take any decision arbitrarily because they have come unopposed in the MC office. That has been happening for the past many years for no honest person wants to become part of the MC because of the persisting irregularities in the Society’s accounts. Only greedy people whose eyes are on making easy money become MC office bearers.
The MC members also boast about their connections with the politicians / police / authorities indicating that no action can be taken against their frauds. That seems to be true because the RCS office of Delhi Government is not taking any action to stop corruption and lawlessness at DPS CGHS.
The inquiry ordered by the RCS office is meaningless, as the accused MC members are allowed to hold office and control Society’s funds while they are expected to tamper with the records, insert fake documents in files, influence key witnesses, threaten opposing members, and collect more money from the residents.
In order to hold the inquiry in a fair and transparent manner, the RCS office must dismiss / dissolve the DPS CGHS MC and appoint an administrator to run the day-to-day affairs of the Society.
If the Registrar and other RCS officials failed to take immediate action in terms of termination of the DPS CGHS MC and initiation of the corruption inquiry against the MC members, it will prove their connivance in crime and corruption at DPS CGHS.
1. To get an immediate stay / restraining order against the present DPS CGHS managing committee (MC), prohibiting it from taking any decision and carrying out any work in the Society.
2. To get the present DPS CGHS managing committee (MC) dismissed through the office of Registrar Cooperative Societies (RCS) of Delhi Government. A government administrator should be appointed to manage the day-to-day affairs of the Society.
3. To get a government inspector appointed through RCS office for investigating the past and ongoing corrupt practices by the successive MCs of the Society. This should also include a Special Audit of Society’s accounts right from the inception of the Society. The inquiry should arrest the culprits and recover the money lost in corruption.
4. As they are refusing to reveal the details of financial misappropriation, the RCS office must recommend for the judicial / police custody of the MC members of DPS CGHS and others who are supporting them.
5. To get the prosecution started and charges framed against the guilty MC members (past and present) and their internal and external accomplices under Prevention of Corruption Act, Consumer Protection Act, Indian Penal Code (IPC), the Benami Transactions (Prohibition) Act, and other legislations which are aimed to reduce corruption and increase transparency and accountability.
6. To get the criminal MC members (past and present) and their supporters expelled from the Society as they pose a serious threat to the cooperative living and peace in the Society.
7. To investigate if there are cases of “assets disproportionate” to their known sources of income since the present and past MC members have been controlling public money worth crores of rupees. The investigation must also extend to the close relatives and / or inheritors of the present and past MC members.
8. To get the list of DPS CGHS members who have recently paid Rs. 2 lakh or more to MC for the illegal FAR construction / repairs project so that their money could be forfeited and deposited in Society funds. These members should also be treated as co-conspirators who must face charges of abetment to crime.
9. To get the investigation extended to other gang members at DPS CGHS. Their names and flat numbers are given in the attached document. The police and law-enforcement agencies must question their roles in the racket being run by the MCs of DPS CGHS.
10. To get an inquiry instituted against the government officials who have failed to take any action in the DPS CGHS case despite repeated complaints from the suffering residents / members and multiple directions from the higher authorities.
11. To get an inquiry instituted against the government officials (including RCS J.B.Singh and the new Registrar) in departments such as RCS and DDA who help the MC of DPS CGHS, as it is a case of complicity or connivance in crime.
12. As stated above, the DPS CGHS MC members – who have been threatening and defaming me – must compensate me with Rs. 10 crore (Ten crore rupees) as compensatory / punitive damages that I am formally claiming now.
Note: If it is beyond the powers of the RCS office to frame certain charges against the present and past MC members, their relatives, and / or others involved in the crimes, the RCS office should send these cases with its observations to police and other competent law-enforcement agencies such as the CBI.
The RCS office should also put this entire DPS CGHS case (including documents, details, and future proceedings) on its website so that other housing societies could learn from this horrific case.
You can click the following weblink to study the details of corruption and illegal activities at DPS CGHS.
By Rakesh Raman, who is a national award-winning journalist and social activist. He is the founder of a humanitarian organization RMN Foundation which is working in diverse areas to help the disadvantaged and distressed people in the society.
About Rakesh Raman
Rakesh Raman is a government’s national award-winning journalist and social activist. Besides working at senior editorial positions with India’s leading media companies, he had been writing an edit-page column for The Financial Express, a business newspaper of the Indian Express group.
Nowadays, for the past about 7 years, he has been running his own global news services on different subjects. He also has formed an environment-protection group called Green Group in Delhi. He has created a comprehensive online information service to educate the Indian voters for the upcoming Lok Sabha election scheduled to happen in 2019.
He is also running a community-driven free online social service under the banner “Clean House” to help the suffering residents of Delhi raise their voice against the growing corruption and injustice in group housing societies where millions of people live.
Recently, he has released a comprehensive research report “Dark Streets: Research Report on Corruption in Delhi’s Housing Societies” that focuses on massive corruption and illegal activities in Delhi’s Cooperative Group Housing Societies.
He also has formed a free Education and Career Counselling Center for deserving children at a poor J.J. Colony in Dwarka, New Delhi under his NGO – RMN Foundation.
Earlier, he had been associated with the United Nations (UN) through United Nations Industrial Development Organization (UNIDO) as a digital media expert to help businesses use technology for brand marketing and business development.
463, DPS Apts., Plot No. 16, Sector 4
Dwarka, Phase I, New Delhi 110 078, INDIA
You may please contact me on my email.
Here are 18 different exhibits from official / government records which clearly show that rampant corruption and criminal activities have been happening at DPS CGHS. But the law-enforcement agencies have failed to arrest and interrogate any person involved in the crimes.
Exhibit 1: Inquiry ordered by RCS office to investigate financial and other irregularities committed by the MC of DPS CGHS. Suddenly, RCS office scuttles the inquiry without giving any reason.
Exhibit 2: RCS office informs the complainant Rakesh Raman that the DPS CGHS has filed an appeal to get the corruption inquiry stopped. As this is a frivolous appeal, RCS office is not supposed to entertain it.
Exhibit 3: Show Cause Notice issued by RCS office to DPS CGHS MC in the case of financial and other irregularities. The DPS CGHS MC is trying to obstruct this inquiry dishonestly as it is refusing to show its dubious financial records to RCS office.
Exhibit 4: Letter from RCS office to DPS CGHS MC about 11 representations on corruption and illegal activities at DPS CGHS. The DPS CGHS MC could not give any satisfactory response.
Exhibit 5: Letter from RCS office to DPS CGHS MC to save the lives of people in the illegal car parking case which is posing risk in the event of fire. DPS CGHS MC has ignored the RCS letter.
Exhibit 6: Misleading ad released by the DPS CGHS MC for an illegal FAR construction project. This is an economic offence to extort public money for an illegal activity.
Exhibit 7: Contract document signed by the DPS CGHS President Neeraj Vaish to pay Rs. 8 lakh as “liasioning fee” to the architect firm. Liasioning fee is another name for bribe to get approvals for illegal construction.
Exhibit 8: Letter from Directorate of Vigilance under CVC directions to start a corruption inquiry at DPS CGHS. Inquiry is still pending.
Exhibit 9: Under directions from CVC and Directorate of Vigilance, the RCS office orders an inquiry in 7 different areas of corruption at DPS CGHS. Inquiry is still pending.
Exhibit 10: An example of corruption when the DPS CGHS MC decided to pay over Rs. 23 lakh (the cost finally went over Rs. 30 lakh) for a work that a vendor offered to do for just Rs. 4 lakh.
Exhibit 11: Letter from Delhi Police informing me that the DPS CGHS has refused to remove the illegal car parking. The case was sent to RCS office which did not take any action. Illegal car parking persists at DPS CGHS.
Exhibit 12: Notice from Labour Commissioner’s office to DPS CGHS President Neeraj Vaish in the Labour Rights Violation case. DPS CGHS MC is trying to evade this case by hook or by crook.
Exhibit 13: Letter from the Labour Minister’s office about the illegal activities at DPS CGHS. Illegal activities have not stopped at DPS CGHS.
Exhibit 14: Letter from Home (Police) Department regarding Labour Rights Abuse case at DPS CGHS. The DPS CGHS MC is trying to avoid this case by giving false information.
Exhibit 15: Letter from Directorate of Vigilance (DOV) of Delhi Government informing me that it has planned to start the inquiry against Mr. J.B. Singh, IAS and other officials of RCS office regarding corruption in DPS CGHS case.
Exhibit 16: Letter dated 21.06.2018 from Home (Police) Department of Delhi Government to RCS, Police (Vigilance), and Delhi Fire Service to take action in the case of illegal car parking at DPS CGHS.
Exhibit 17: The DPS CGHS MC letter dated July 7, 2018 regarding AGM on 29.7.2018 shows that the MC members are hatching a criminal conspiracy against me with the support of other members. This case of conspiracy needs to be fully investigated.
Exhibit 18: The Office of the Chief Vigilance Officer of DDA with its letter dated 24.7.2018 has informed me that it is ready to start an inquiry on corruption by DDA officials in Delhi housing societies, particularly in FAR construction cases.
Note: There are many other documents that show extreme corruption and lawlessness at DPS CGHS.
Disclosure: I have written this report not only as a journalist, but also as a victim of the fraud and intimidation happening at DPS Housing Society. I am facing repeated threats from the MC members and their supporters because I have been raising my voice against their corruption, lawlessness, environmental damage, and human rights violations.
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