Big Breaking: Vigilance Bureau arrests Former PSPCL CMD, Ex-Chief Engineer and Builder in alleged financial scam
Babushahi Bureau
Ludhiana (Punjab), May 20, 2026 —
In a major action linked to alleged irregularities in the functioning of Punjab State Power Corporation Limited (PSPCL) during the Akali government tenure, the Economic Offences Wing of the Punjab Vigilance Bureau on Wednesday arrested former PSPCL CMD K. D. Chaudhary and former SDO Sanjeev Prabhakar, who later retired as Deputy Chief Engineer, from their residences in Ludhiana.
Along with them, Ludhiana-based private builder Amit Garg was also arrested in the case.
The arrests were made after a prolonged Vigilance investigation into an alleged financial scam involving the installation of a 66 KV power sub-station in the Basant City private housing colony in Ludhiana.
According to the investigation, the accused officials allegedly ignored departmental rules and provided undue benefit to the private builder. As per regulations, the complete cost of installing a 66 KV electricity sub-station in a private colony was supposed to be borne by the builder himself.
However, Vigilance officials alleged that former SDO Sanjeev Prabhakar and former CMD K.D. Chaudhary, in collusion with the builder, used government funds for the installation of the sub-station, causing financial loss to the state exchequer.
sources said that Sanjeev Prabhakar had retired from the department a few years ago as Deputy Chief Engineer, while K.D. Chaudhary, considered one of the most influential officers in Powercom, retired in 2017.
According to sources the investigation into the matter had been ongoing since 2021. After collecting evidence and conducting a detailed probe, the Vigilance Bureau registered FIR No. 6/26 under Sections 13(1) and 13(2) of the Prevention of Corruption Act along with Sections 409 and 120-B of the IPC.
Based on the FIR, Vigilance teams carried out coordinated operations and arrested both former officials and the builder on Wednesday morning.
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Official Press Statement Vigilance Bureau Punjab
VIGILANCE BUREAU ARRESTS FORMER PSPCL CMD K.D. CHAUDHARY, EX-SENIOR XEN SANJEEV PRABHAKAR, AND COLONIZER AMIT GARG IN CORRUPTION CASE
The Vigilance Bureau, Economic Offences Wing, Ludhiana, has arrested K.D. Chaudhary former Chief Managing Director, PSPCL, Sanjeev Prabhakar former Senior XEN, and Amit Garg Director, M/s Damini Resort and Builders Private Limited, Ludhiana. A case has been registered against them in VB Economic Offence Wing Ludhiana following the conclusions of Vigilance Inquiry No. 05, dated 10.05.2021 at Vigilance Bureau Economic Offence Wing Ludhiana.
Disclosing this here today and official spokesperson of Punjab Vigilance Bureau said that pertaining to the installation of 66 KV Basant Avenue Substation, the colonizer of Basant Avenue in collusion with the concerned field officers of PSPCL got the said 66 KV Substation installed in 1015 square yards in his colony.
He further informed that if at that time the higher authorities had instructed the field officers to verify the NOC of all the colonies of the colonizer and since the colonies are interconnected and located side by side, the entire electricity load would have been calculated together, then the entire cost of the 66 KV substation would have been borne by the colonizer.
In this regard, he said that the guidelines issued by the Ministry of Electricity regarding installation of substation were not followed. The fact that the said 66 KV Basant Avenue substation has no paved road and is located in fields about 3 km away from Pakhowal Link Road was also not mentioned in the proposal or later in any office noting by the higher authorities of the power department and the Chief Managing Director, so even now the said 66 KV Basant Avenue substation is located in undeveloped colonies and fields.
Moreover he added that there is no paved road to reach it. The proposal sent by then XEN Sanjeev Prabhakar and other senior officers posted in the field at that time regarding 66 KVH Substation Basant Avenue was approved by the then Chief Managing Director K.D Chaudhary, ignoring the shortcomings and comments regarding the installation of the said substation. Due to which Basant Avenue Colony has been directly benefited. The case is being investigated by arresting the accused Shri K.D Chaudhary, Shri Sanjeev Prabhakar and Shri Amit Garg and further investigation is being carried out.