Sikkim Vigilance Police Uncover Major Corruption Scandal in Teesta Hydro Project Investigation

KalimNews with inputs from IPR, Gangtok, May 31, 2025, Gangtok :  The Sikkim Vigilance Police (SVP) have intensified their probe into widespread corruption related to the Teesta Stage III Hydro-Electric Project in North Sikkim, with coordinated searches conducted across multiple cities, including Delhi, Hyderabad, Visakhapatnam, Siliguri, and Gangtok. The searches, carried out over the 22nd to 24th of May, were a part of an ongoing investigation into irregularities surrounding the ambitious 1200 MW project, which has been marred by allegations of fraud and criminal misconduct, a press release of the Sikkim Vigilance Police stated .

The release further stated that the investigation was initiated following an FIR lodged on May 18, 2025, against key officials, including the then Principal Chief Engineer (PCE)-cum-Secretaries of the Energy & Power Department, former Chairmen and Managing Directors of Teesta Urja Ltd., contractors, and several unidentified public servants associated with the Sikkim and Central governments.

Searches were conducted at the offices and residences of those believed to be linked to the project. A significant amount of incriminating material, including foreign currency (USD), bank account details, property documents, and passports, was seized. These materials are expected to be critical in establishing the scale of corruption and criminal activity tied to the development of the hydroelectric project.

Initial investigations have uncovered disturbing evidence that suggests the Sikkim government’s Energy and Power Department acted with ulterior motives, sidestepping established norms to favor an in-house consortium that lacked the necessary technical, financial, and managerial credentials. The consortium, which did not meet the required standards for such a large-scale hydro-power project, orchestrated a sophisticated deception to present itself as a credible Independent Power Producer (IPP).

During the execution phase, Teesta Urja Ltd., a Special Purpose Vehicle set up for the project, violated contractual agreements with the government, leading to serious misrepresentations and potential compromises in the dam’s design parameters. Investigators suspect that these actions contributed to the dam's eventual collapse, raising concerns over public safety.

Further scrutiny has revealed possible involvement of several officials within the Energy and Power Department, who are believed to have been complicit in facilitating deviations from the project’s agreed terms. Moreover, there are suspicions about the role of certain Central Government officials in granting illegal approvals, with allegations that developers may have extended substantial bribes in exchange for these expedited clearances.

Additional inquiries are focusing on the involvement of retired officials from the Energy and Power Department, who may have been engaged as consultants to launder illegal funds under the guise of service fees. Investigators are also examining whether these officials received illicit payments in the form of cash, properties, and luxury goods, funneled through covert channels to conceal the origin of the money.

As the investigation unfolds, the Sikkim Vigilance Police are intensifying efforts to dismantle the complex web of corruption. Authorities are also working to identify and seize properties and assets acquired using proceeds from the crime. Special attention is being paid to the families of the accused, with a particular focus on tracing the flow of illegal funds and exposing any potential money laundering operations.

The investigation remains ongoing, with authorities determined to unearth the full extent of the corruption, focusing on both government officials and contractors who have allegedly conspired to manipulate the system for personal gain. Further action, including asset seizures and legal proceedings, is expected in the coming weeks.