PWD Fee Scam Exposed

• Sprouts News Uncovers Rs 12.5 Cr Loot

• CAG Ignored, Corruption Continues

Unmesh Gujarathi
Sprouts News Exclusive
In a shocking revelation that has stirred the state administrative machinery, Sprouts News has uncovered an ongoing scam within the Maharashtra Public Works Department (PWD), where officials have allegedly siphoned off nearly Rs 12.5 crore by pocketing half of the fees collected for technical evaluations of infrastructure projects. This malpractice continues unabated, despite scathing observations made earlier by the Comptroller and Auditor General (CAG).
According to internal documents exclusively accessed by Sprouts News, PWD officials are drawing significant illegal compensation by charging other government departments, municipal corporations, and local bodies for preparing and reviewing project estimates, drawings, and technical approvals. As per the Maharashtra Public Works Code, officers are entitled only to their fixed salaries, and accepting any direct or indirect form of compensation is strictly prohibited. Yet, the corrupt practice of taking a 50% share of the fees remains prevalent.
The investigation reveals that the total fees collected for reviewing blueprints and cost estimates for buildings, flyovers, and roadworks between 2019 and 2022 amounted to around Rs 23 crore. Of this, an estimated Rs 12.5 crore was illicitly distributed among officials ranging from Junior Engineers to Principal Secretaries. Alarmingly, this entire process was carried out without informing or seeking consent from the Finance Department, a direct violation of the 7th September 1992 government resolution mandating financial department consultation for proposals impacting state finances.
When Sprouts News tried to contact Finance Secretary O.P. Gupta for comments regarding these findings, he remained unreachable despite multiple calls and messages. The documents suggest that the PWD, in February 2019, issued a departmental order under then Secretary (Roads) Chandrashekhar Joshi’s signature, authorizing this distribution — all without cabinet or gubernatorial approval.
The breakdown of this illicit distribution is startling. Of the 50% amount retained from project fees:
•25% is shared among Junior Engineers, Executive Engineers, Superintending Engineers, and Chief Engineers.
•15% goes to Section Officers, Under Secretaries, Deputy Secretaries, and Secretaries (Roads/Buildings), as well as the Principal Secretary.
•The remaining 10% is allocated for equipment maintenance.
Despite the CAG’s audit noting this as a “blatantly illegal” move, and the lack of formal financial or executive authorization, the system remains functional. A departmental note even attempts to justify the practice by citing the enhancement of technical expertise and public service benefits.
In its bold exposé, Sprouts News reiterates that this sustained exploitation of public funds, masked under the pretext of service to society, undermines transparency and governance. Unless immediate and decisive action is taken, this systemic malpractice threatens to erode public trust and further strain the state’s economy.