Delhi minister alleges fraud, security contractor denies charge

New Delhi, March 23  Delhi Tourism Minister Kapil Mishra on Wednesday alleged fraud by a private security contractor in the state-run DTTDC. The company, however, denied the charge.

Mishra alleged that contractor 'Kore Securities' was paying each security guard Rs.8,000 a month against the mandated Rs.13,000 even as it collected Rs.22,000 per security guard every month from the Delhi government.

"The total loss to the exchequer works out to over Rs.5 crore," Mishra told IANS here.

The minister ordered the termination of the security contract for alleged violation of labour laws and financial fraud.

"I have directed the authorities concerned to terminate the contract and register a FIR against the contractor. I have also recommended blacklisting of the company from government security contracts."

He alleged that the security guards supplied to the Delhi Tourism and Transportation Development Corp (DTTDC) worked in 12-hour shifts as per the re-negotiated contracts but were paid for only eight hours. 

The minister said fraud pertained to underpaid provident fund contributions and underpayment of Rs.5,000 per employee per month. 

"The Delhi government is firmly committed to eliminate corruption. This is just another example of our action against those working against the interests of the people. We will ensure that the interests of the helpless security guards are not ruined by corrupt contractors," Mishra said.

However, the security company said it was paying wages as per the law.

"We pay minimum wages to the guards based on the labour law. I am clueless about such allegations. I've not been informed or received any written document from the Delhi Tourism Department so far in this connection," Kore Securities vice president Kunal Joshi told IANS.