WAPCOS Scandal: Multi-Crore Bribes and Benami Properties Shake India’s Water PSU

WAPCOS Limited, once India’s flagship consultancy for water and power projects, is now at the center of a massive corruption scandal, raising serious questions about governance in public sector undertakings.

According to whistleblowers and internal sources, the alleged irregularities took place under former CMD Rajnikant Aggarwal, who had previously been declared “Not Fit” for a director’s post by the Public Enterprises Selection Board (PESB) but was appointed CMD in 2021.

How the Alleged Scheme Worked

Sources allege that Aggarwal and a close-knit team operated a well-structured network to siphon off funds from domestic and international projects. Project managers in India were reportedly forced to pay monthly commissions, while managers abroad were allegedly pressured to remit money through hawala routes. Internal coordination of these transactions was allegedly handled from the Delhi headquarters, sometimes using code names and encrypted communication.

Benami Property Network in Noida

At the center of the alleged financial misappropriation is a network of properties near Greater Noida’s Pari Chowk area. Funds allegedly diverted from projects were reportedly laundered through front companies like Agni Plywood Pvt. Ltd. and used to purchase luxury flats and commercial properties in the names of relatives and associates, far exceeding the declared incomes of officials involved.

Lavish Spending Amid Neglect

Whistleblowers also describe a culture of extravagance. Imported gifts, luxury watches, high-end vehicles, and overseas “review tours” disguised as official trips were reportedly common, while employees faced delayed salaries, unpaid vendor bills, and withheld perks. Even critical projects in tribal schools, hospitals, and Kendriya Vidyalayas were allegedly affected by commissions demanded by the network.

Resistance to Reform

When IAS officer Shilpa Shinde was appointed CMD in September 2025, insiders claim the remnants of the Aggarwal network attempted to undermine her. Whistleblowers say officials continued handling files and tenders through proxies, organized secret meetings, and filed false complaints to obstruct reforms. One source described the network as a “shadow government inside WAPCOS.”

Financial and Institutional Fallout

On October 2, India Ratings downgraded WAPCOS’s bank loan facilities from IND A- to IND BBB (Negative), citing weak controls and governance lapses. Reports also indicate significant outflows from provident funds, fake invoices, and diversion of loans to dormant entities. Pending CAG audits and potential DPE-mandated rollbacks of pay scales could further impact the PSU.

Key Figures Alleged in the Network

Rajnikant Aggarwal (Ex-CMD)

Sumir Chawla (ACM HRD/CPIO)

Deepank Agarwal, Rajat Jain, Deepak Lakhanpal

Sanjay Sharma, Seema Sharma, Atul Sharma

Vimal & Kamlesh Chander

Public Outcry and Calls for Action

Social media campaigns using #WAPCOSScam have called for investigations by the CBI, ED, and CAG, but official action remains limited. One senior ministry source noted, “The files are ready, but someone is protecting the old network. Without direct orders from above, nothing will move.”

Recommendations

Experts and whistleblowers recommend a forensic CAG audit for 2021–25, a CBI probe into appointments and tender fraud, ED action to freeze benami assets, suspension of implicated officers, protection for whistleblowers, and policy reforms to increase transparency and accountability.

The Way Forward

Once considered a model PSU, WAPCOS now faces the risk of institutional collapse. The onus is on Minister C. R. Patil and CMD Shilpa Shinde to act decisively and restore the credibility of an organization critical to India’s water and power sector.