EMD scam rocks public health dept

metro india news  I hyderabad

Serious allegations of financial irregularities have surfaced in the Public Health wing, with contractors claiming that Earnest Money Deposit (EMD) funds worth over Rs 2 crore have been diverted through unofficial channels. The controversy has reportedly centered on the Warangal Circle office, which handles major civic infrastructure works across multiple districts.

Contractors allege that EMDs collected during tender processes for works such as roads, drainage systems, culverts, and drinking water supply projects were required to be kept in designated government bank accounts. However, in several cases, they say refunds were not processed through official banking systems. Instead, EMD amounts were allegedly returned from private individual accounts, raising serious concerns over financial handling and transparency.

The Warangal Circle has jurisdiction over the erstwhile districts of Adilabad, Karimnagar, Warangal, and Khammam, covering a large portion of municipal infrastructure works. Contractors estimate that the office manages between Rs 10 crore and Rs 20 crore in EMD deposits linked to various tenders.

According to the allegations, nearly Rs 2 crore in EMD funds have gone missing or were diverted. Contractors further claim that an outsourcing employee was given access to sensitive responsibilities, including EMD processing and biometric systems, allegedly with the approval of senior officials. This arrangement is said to have enabled diversion of funds into private accounts.

The issue reportedly came to light after several contractors faced delays in receiving refunds. Frustrated by the lack of response, some escalated pressure on officials, which led to partial repayments. In one instance, a contractor from Mancherial district allegedly received around Rs 15 lakh from a private account instead of the government treasury.