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HINDUSTAN PAPER CORPORATION LIMITED : Set to Collapse The PSU indulged in Corruption & Irregularities

By : Anshul Tandon 

“Corruption is Social Evil” “Power tends to corrupt, and absolute power corrupts absolutely.”

Corruption in India has taken massive proportions with a new scam being unearthed almost every day .However this has not metered the architects of corruption in India from continuing their looting spree. Its shame to this country that Chairman’s and directors in Public Sector Organizations are recruited after a large fund being reached in the office of India’s supreme authority. This is the situation from last 10 to 15 years. One can imagine the level of corruption. So how do you expect if there is corruption at top .What will be the situation at lower level.

CMD of Hindustan paper corporation ltd , under ministry of heavy industries shri M.V.NARSIMHA RAO  is forcing his mill heads to give all the mill related tenders to one man by name KHANDELIA who operates under different firm names, all the tenders are designed to suit him and as a result no other person gets these tenders.
Recently one material handling tender which was due for retendering as the person had quoted 30 % high was forcibly given to him at the behest of the CMD.  one material handling bamboo tender which was under extension to the same person,was forcibly given to him in spite of the fact that he had backed out suddenly leaving the mill in distress,
In next tender of material handling of bamboo shri khandelia under different name has quoted 90 % high,and hence recommended for retender,but, CMD has instructed to revoke back the retendering activities.

Now another tender of finishing house is due,but,he has instructed to make terms and conditions suitable for the said contractor. he at nagaland pulp and paper co ltd, has appointed an  advisor to act as a middleman to participate in all the tenders, this appointement has been done without any formal advertisement.
Coal,lime ,bamboo prices are pre determined and only formalities are being carried out in awarding of the tenders. One car on co. name has been kept at P.S to minister since last several years. As per him he is seeking extension of his tenure and hence is doing
all this to feed the ministry. If timely action intervention is not done, HINDUSTAN PAPER CORPORATION WILL  COLLAPSE VERY SOON.


Following irregularities has been observed at Hindustan Paper Corporation, (A Govt of India Undertaking), Public Sector Undertaking you are requested to kindly investigate and help plugging of corruption

  • In which year imported pulp was procured in HPC and at what rate. When it was utilized for production and when it has been shown in book of accounts.
  • How many types of grants so far since 2009 has been given to HPC and under what schemes and what is its utilization report
  • What is the total outstanding to all the service providers till date including raw materials etc. in HPC.
  • What are the Over Draft limits taken from different banks and how much is being utilized and for what purposes.
  • Appointment seeking extension of CMD : when was it started and then why PSEB vacancy has been given for CMD if extension was imminent. Is it going to BHEL CMD extension mode, out of rules.
  • Technical advisor to CMD was appointed without any advertisement for Kolkata but he remains at Delhi. He employed one TECH ADVISOR TO CMD, though having sufficient tech persons in the organisation, the person sits at DELHI even though CMD is stationed at Kolkata, he probably is the middlemen in all the deals being awarded to units of HPC and its subsidiaries. He also is an entrepreneur and is working as middlemen in several other pvt firms
  • Bamboo feeding contract at Nagaon Paper Mill (NPM) has been running on extension for more than a year. Why retendering has not being done in spite of committee’s recommendation for retendering. The file was closed and recommended for retendering, has been opened again by instruction from CMD and is being finalized in favour of some contractor even at a higher rate. Whether such things can ever happen In a PSU. File of bamboo feeding which had been recommended for retendering at all levels in NPM, has been reopened and is forced by CMD to award the same to a most favoured contractor at 70% higher rate under negotiations who operates under different names Shri Khandelia
  • How much fund has been received for revival of Nagaland Pulp & Paper Company and where it has been adjusted in book of accounts
  • What is the amount of statutory dues unpaid by HPC in both the mills and since when
  • What amount has been due for payment in NABARD and who is paid on priority
  • CMD has employed son of a union activist at Cachar Paper Mill (CPM) in spite of low marks percentage and taking fresh candidate for E1 level, bending all the rules in favour of the candidate.
  • CMD has awarded PRODUCT WARE HOUSE contract under personal stricture to the above contractor, Shri Khandelia, at 40% higher, in spite of non-recommendation at lower level.


Ensuring vigilance is management function and it should be seen as a part of good governance, the Vigilance department should take note of this on an urgent basis .If timely action intervention is not done, HINDUSTAN PAPER CORPORATION WILL  COLLAPSE VERY SOON.


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