He said the sector would turn out to be the biggest scam collectively if probed.
The irregularities relate to the alleged encroachment on the forest/government/gram sabha land and siphoning off local area development (LAD) funds by politicians.
Also Read
Now, this school, with bare minimum infrastructure, could also be used for other ends, like allowing mass copying during exams, he added. “Besides, other politicians would be coaxed to allot their LAD to such schools for a cut.”
He said politicians such as Badshah Singh and Avadh Pal Singh had encroached upon the gram sabha land in this fashion. “The unscrupulous politicians use this route to convert black money into white also by showing it as donation.”
Mehrotra hit national headlines recently when he indicted 199 persons in the alleged Rs 1,400 crore scam relating to the construction of lavish parks and memorials in Lucknow and Noida during the previous Mayawati regime.
Her name, however, did not figure in the report, since she was “beyond the scope of the probe.”
Nevertheless, her two powerful cabinet ministers Naseemuddin Siddiqui and Babu Singh Kushwaha have been named. The report, given to the state, claims 35 per cent of the total budget sanctioned for these constructions was misappropriated.
He said if the income tax department, registrar of companies and anti-money laundering sleuths were prompt, most cases of financial misappropriation could be checked.
“During our investigations, we have found firms facilitating incorporation of new companies have witnessed meteoric growth in a couple of years, specially in the National Capital Region, since these unscrupulous firms excel in bypassing laws to the advantage of their clients,” Mehtrotra said.
“We have also detected while the revenue of companies owned by the kin of top politicians are falling, the profits are increasing,” he added.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
)