ED Questions Former BUIDCO MD IAS Yogesh Kumar Sagar for 10 Hours Over ₹21.92-Lakh Austria Trip, ₹5,268-Crore Projects
The Enforcement Directorate (ED) has questioned former Bihar Urban Infrastructure Development Corporation (BUIDCO) Managing Director Yogesh Kumar Sagar, a 2017-batch IAS officer of the Bihar cadre, for nearly 10 hours in connection with alleged financial irregularities in major infrastructure projects worth ₹5,268 crore.
The questioning, conducted on Wednesday, November 4, focused on several aspects of the investigation, including an alleged expenditure of ₹21.92 lakh on a family holiday to Austria in June 2024, the awarding of major infrastructure contracts and suspected financial transactions involving individuals linked to private contracting firms.
According to reports, the investigating agency confronted Sagar with financial documents and digital forensic evidence. Officials also sought clarification regarding payments allegedly made by individuals associated with private contractors towards expenses incurred during his family’s overseas trip.
ED Probes ₹21.92-Lakh Family Holiday to Austria
A significant part of the questioning reportedly centred on Sagar’s family visit to Austria between June 22 and June 30, 2024. He travelled with his wife, Avlokita Ashok, and their two children.
According to details cited in the ED’s affidavit and digital forensic records, the family visited Vienna, Salzburg and St. Wolfgang, staying at hotels during the eight-day trip. The total expenditure on air tickets, foreign currency and hotel reservations has been estimated at approximately ₹21.92 lakh.
The payment trail under investigation reportedly comprises two major components:
* ₹4.27 lakh: Paid through the bank account of Sagar’s wife, Avlokita Ashok.
* ₹17.65 lakh: Allegedly paid in cash by Sahil Sinha, an associate of Rishu Shree, and Gujarat-based company Jainam Engicon.
* Travel agency: The cash payments were reportedly routed through Lambuji Tour, a travel agency based in Surat.
The ED reportedly questioned Sagar about the circumstances under which an individual associated with a private contractor and other entities allegedly arranged a substantial portion of the expenses for his family’s international holiday, including foreign currency.
Investigators also sought details about the source of the funds, the nature of the arrangements and the reasons behind the alleged involvement of individuals linked to private companies.
₹5,268-Crore BUIDCO Projects Under ED Scanner
Beyond the overseas travel expenses, the investigation has also brought 17 major BUIDCO infrastructure projects, with a combined estimated value of ₹5,268 crore, under scrutiny.
The agency is examining the process through which payments totalling approximately ₹2,861 crore were reportedly made in connection with these projects.
According to the allegations being investigated, technical eligibility conditions in certain tenders were structured in a manner that allegedly restricted participation to a select group of large companies, including Toshiba and VA Tech Wabag.
The ED is further examining whether, after the award of contracts, the execution of work was subsequently transferred through back-to-back subcontracting arrangements to companies allegedly associated with Rishu Shree.
Two firms, Matrushva and Reliable, have figured prominently in this aspect of the investigation. Investigators are reportedly examining allegations that these companies secured subcontracted assignments while retaining margins of approximately 2-4 per cent.
Another important aspect concerns photographs of confidential Detailed Project Reports (DPRs) and departmental documents allegedly recovered from the mobile phone of an individual associated with Rishu Shree.
The agency is seeking to establish how these sensitive departmental documents were accessed and whether they have any connection with the alleged irregularities in the tendering and execution of BUIDCO projects.
Fifth IAS Officer Questioned in the Case
Yogesh Kumar Sagar is reportedly the fifth IAS officer to be questioned by the ED in connection with the case, following directions issued by the Patna High Court.
The four other IAS officers who have reportedly appeared before the agency are:
* Santosh Kumar Mall (1997-batch, Bihar cadre)
* Dharmendra Kumar (2013-batch, Bihar cadre)
* Sunil Kumar Yadav (2012-batch, Bihar cadre)
* Abhilasha Kumari Sharma (2014-batch, Bihar cadre)
Another senior officer, Anand Kishore (1996-batch, Bihar cadre), is also expected to face questioning. He was reportedly summoned for October 30 but sought an additional week to appear before the investigating agency.
The questioning of these officers forms part of the wider investigation into alleged irregularities in BUIDCO’s infrastructure contracts and the associated financial transactions.
ED to Submit Investigation Status Report Before Patna High Court on November 27
The matter is also under judicial scrutiny, with the Patna High Court monitoring the progress of the investigation. A bench headed by Justice Satyavrat Verma has scheduled the next hearing for November 27 at 3 pm.
The court has directed the Additional Director General (ADG) of the Special Vigilance Unit (SVU) to submit a personal affidavit explaining why First Information Reports (FIRs) have not been registered against senior officials in connection with the alleged irregularities.
Meanwhile, the ED is expected to place its investigation status report before the court in a sealed cover. The report is likely to detail the questioning of the five IAS officers, digital forensic material collected during the investigation and the financial transactions being examined by the agency.
The November 27 hearing is expected to provide further clarity on the progress of the investigation and the steps taken by the ED and the SVU in response to the court’s directions.
As the investigation progresses, the alleged links between infrastructure contracts, subcontracting arrangements and payments connected with the Austria trip remain among the key issues under examination. The findings of the investigating agencies and the subsequent judicial proceedings will determine the course of the case.
