CBI Files Bribery FIR Against Megha Engineering
• Electoral Bond Giant MEIL Under CBI Lens
• ₹94 Crore Fine, Bribes & Bonds: MEIL in Trouble
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
The CBI has filed a bribery FIR against Megha Engineering (MEIL) involving ₹174 crore in payments for a steel plant project. MEIL, a major electoral bond donor, also faces ₹94.68 crore fines for illegal mining in Maharashtra and contract cancellations. Sprouts SIT investigates rising allegations against MEIL and its directors.
The Central Bureau of Investigation (CBI) has registered a formal FIR against Hyderabad-based Megha Engineering and Infrastructure Ltd (MEIL) in connection with an alleged bribery case involving public sector enterprises. MEIL, which recently emerged as the second-largest purchaser of electoral bonds worth ₹966 crore, is accused of paying bribes to secure payments for projects linked to the Jagdalpur Integrated Steel Plant.
The CBI FIR, made public on March 31, 2025, names eight officials from NMDC Ltd and the Nagarnar Integrated Steel Plant (NISP) along with two senior executives from MECON Ltd. These individuals allegedly received ₹78.86 lakh in bribes to facilitate payments of ₹174.41 crore to MEIL. According to the FIR, the illicit payments were routed through MEIL’s General Manager Subhash Chandra Sangras, who has also been named as an accused, along with unnamed others and MEIL itself.
The alleged bribes were paid against 73 invoices raised for project works that included construction of an intake well, pump house, and cross-country pipeline. The CBI had earlier registered a preliminary enquiry (PE) on August 10, 2023, into the ₹315 crore project, following which a recommendation was made to initiate a regular case. Sprouts News Investigation Team (SIT) is closely monitoring the developments as further arrests and disclosures are expected.
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MEIL’s Massive Electoral Bond Donations Raise Red Flags
Company’s political funding links draw scrutiny amid corruption probe
Data released by the Election Commission of India on March 21, 2024, revealed that Megha Engineering and Infrastructure Ltd donated ₹586 crore to the Bharatiya Janata Party (BJP) through electoral bonds, making it the highest single donor to the ruling party. The company also contributed ₹195 crore to the Bharat Rashtra Samithi (BRS), ₹85 crore to the DMK, ₹37 crore to the YSRCP, and ₹25 crore to the Telugu Desam Party (TDP). The Congress received ₹17 crore, while smaller regional parties like JD(U), JD(S), and Jana Sena Party collectively received under ₹25 crore.
The sheer magnitude of these donations — coinciding with major contract wins — has triggered concerns of quid pro quo arrangements between corporate donors and political beneficiaries. Multiple civil society groups and electoral reform activists have pointed out that MEIL’s funding pattern reflects a potential conflict of interest, especially when placed against the backdrop of its involvement in public infrastructure and now, a high-profile corruption case.
Sprouts SIT is examining whether the electoral bond system has facilitated the institutional shielding of corporate wrongdoings, especially in large-scale tenders and public-private partnerships (PPPs). Regulatory agencies like the Election Commission, RBI, and SEBI have been urged to initiate parallel investigations.
Illegal Mineral Excavation Adds to MEIL’s Legal Woes
₹94.68 crore penalty imposed by Maharashtra government for mining violations
In a parallel development, Maharashtra Revenue Minister Chandrashekhar Bawankule informed the state assembly that MEIL had been slapped with a fine of ₹94.68 crore for illegal excavation of minor minerals during road construction projects. These violations occurred on the Shegaon and Pandharpur pilgrimage routes in Jalna district.
According to official documents reviewed by Sprouts SIT, MEIL was penalized through multiple orders — including a ₹38.7 crore fine by the Additional District Collector and a ₹55.9 crore fine by the Tehsildar of Partur. Although the company challenged the orders, it was directed to deposit at least 1% of the fine amount in the state treasury to secure the release of confiscated construction machinery.
The firm’s appeal before the Additional Revenue Divisional Commissioner, Chhatrapati Sambhajinagar, was also rejected. The minister added that seven additional cases are still pending against MEIL, raising serious questions about the company’s environmental compliance and governance ethics in executing large infrastructure projects.
MMRDA Contract Cancellation Puts Tendering Process Under Spotlight
Supreme Court petition by L&T leads to contract reversal
The Mumbai Metropolitan Region Development Authority (MMRDA) recently cancelled a contract awarded to MEIL after rival bidder Larsen & Toubro (L&T) challenged the tender process in the Supreme Court. The cancellation came after the apex court noted irregularities in evaluation and award criteria, triggering a deeper examination into MEIL’s procurement track record.
Sprouts SIT has found that this is not the first instance where MEIL’s contract wins have faced legal challenge. In several states, competing firms and whistleblowers have raised concerns over non-transparent bidding, last-minute eligibility relaxations, and political interference in awarding of mega projects. While MEIL denies any wrongdoing, the company has repeatedly failed to clear allegations through transparent disclosures.
This growing pattern of legal pushback suggests a systematic abuse of procurement frameworks, wherein financial might and political proximity may be influencing competitive tendering.
Also Read: SARFAESI Violation Sparks ₹5 Crore Defamation Suit Against Edelweiss ARC.
Fraud Allegations Against MEIL Directors Mounting
Multiple corporate watchdogs have also raised concerns over the financial conduct of MEIL’s top executives, including directors and project heads. Subhash Chandra Sangras, named in the CBI FIR, has previously been accused in internal audit reports of irregular billing, vendor favoritism, and conflict of interest.
In another case from Telangana, a land acquisition linked to MEIL’s highway project was found to be under questionable valuation practices, resulting in inflated compensation paid to entities allegedly close to the company’s directors. Local RTI activists uncovered inconsistencies in land records and project alignment to favor MEIL’s pre-owned assets.
Moreover, a forensic audit ordered by a consortium of lenders in 2023 reportedly flagged diversion of project funds and use of shell companies in procurement chains. While the report was not made public, banking sources confirmed that some red flags were raised about the end-use of sanctioned funds for state-funded water and road projects.
Regulatory & Judicial Oversight Likely to Intensify
As both central and state-level investigations progress, MEIL faces mounting legal, financial, and reputational risk. The Sprouts News Investigation Team (SIT) anticipates that MEIL’s contracts with PSUs and government agencies may come under renewed scrutiny, especially those awarded post-electoral bond donations.
Policy experts are calling for systemic reforms — including real-time disclosure of political donations, transparent tender audits, and stricter corporate governance checks for companies engaged in public contracts. Regulatory agencies such as CBI, ED, Vigilance Commissions, and CAG may be pressed into initiating broader audits into MEIL’s pan-India operations.
Despite repeated attempts by Sprouts SIT to contact MEIL’s senior management and public relations team for their official stand on the ongoing investigations, no response has been received at the time of publishing.
