Patna: The Enforcement Directorate (ED) questioned former Bihar Urban Infrastructure Development Corporation (BUIDCO) Managing Director Yogesh Kumar Sagar, a 2017-batch IAS officer of the Bihar cadre, for approximately 10 hours on Wednesday in connection with its investigation into alleged financial irregularities in BUDCO projects.
The questioning focused on expenditure of around ₹21.92 lakh during a family trip to Austria in June 2024, the award of contracts for major BUIDCO projects and alleged transfers of funds to accounts linked to individuals associated with private contractors.
According to the report, the ED confronted Sagar with financial records and digital forensic material during the questioning. Investigators also sought explanations regarding payments allegedly made by individuals associated with private firms towards the expenses of his family’s overseas travel.
ED Questions Sagar Over ₹21.92-Lakh Austria Trip
One of the key areas examined by the ED was Sagar’s family trip to Austria between June 22 and June 30, 2024. He reportedly travelled with his wife, Avlokita Ashok, and their two children.
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According to details cited in the ED’s affidavit and digital forensic records, the family stayed at hotels in Vienna, Salzburg and St. Wolfgang during the visit.
The total expenditure on flights, foreign currency and hotel bookings was reportedly around ₹21.92 lakh.
The payment details cited in the investigation include:
- ₹4.27 lakh: Paid through the bank account of Sagar’s wife, Avlokita Ashok.
- ₹17.65 lakh: Allegedly paid in cash by Sahil Sinha, an associate of Rishu Shree, and Gujarat-based company Jainam Engicon.
- Travel agency: The cash payments were reportedly made to Surat-based travel agency Lambuji Tour.
The ED questioned Sagar about why an employee associated with a private contractor and other entities allegedly arranged payments for his family’s eight-day overseas trip, including foreign currency.
The officer was also asked to explain the source and circumstances of the payments.
ED Examines ₹5,268-Crore BUIDCO Projects
The investigation also covered 17 major BUIDCO projects with a combined estimated cost of ₹5,268 crore. The ED examined the process through which payments amounting to approximately ₹2,861 crore were made in connection with these projects.
The agency has alleged that technical conditions in certain tenders were framed in a manner that restricted eligibility to a limited number of large companies, including Toshiba and VA Tech Wabag.
According to the allegations, after the contracts were awarded, the work was passed on through back-to-back subcontracting arrangements to firms allegedly linked to Rishu Shree.
The report identifies two such firms:
- Matrushva
- Reliable
The ED is examining allegations that these firms received subcontracted work while retaining a margin of around 2–4 per cent.
Investigators also questioned Sagar about photographs of confidential Detailed Project Reports (DPRs) and departmental files allegedly recovered from the mobile phone of an individual associated with Rishu Shree.
These aspects form part of the agency’s investigation into the awarding and execution of BUIDCO contracts.
Fifth IAS Officer Questioned in the Investigation
Sagar is reportedly the fifth IAS officer to appear before the ED in the case following the Patna High Court’s directions.
The four other officers questioned earlier are:
- Santosh Kumar Mall (IAS: 1997: BH)
- Dharmendra Kumar (IAS 2013: BH)
- Sunil Kumar Yadav (IAS: 2012: BH)
- Abhilasha Kumari Sharma (IAS: 2014: BH)
IAS officer Anand Kishore (1996: BH), is also expected to be questioned. He had been summoned for October 30 but reportedly sought an additional week to appear before the agency.
ED to Submit Status Report Before Patna High Court on November 27
The investigation is also being monitored by the Patna High Court. A bench of Justice Satyavrat Verma has scheduled the next hearing for November 27 at 3 pm.
The court has directed the Additional Director General (ADG) of the Special Vigilance Unit (SVU) to submit a personal affidavit explaining why First Information Reports (FIRs) have not been registered against senior officials in connection with the matter.
The ED is expected to submit its status report in a sealed cover before the court. The report will cover the questioning of the five IAS officers, digital forensic records seized during the investigation and the financial trail being examined by the agency.
The next hearing is expected to take up the investigation’s progress and the information submitted by the ED and the SVU.
