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World Bank says Kavuri Sambasiva Rao’s firm fudged bills

Published Nov 29, 2013, 1:33 pm IST
Updated Mar 18, 2019, 8:55 pm IST
PCL charged of having 'engaged in fraudulent practices in connection with 3 Bank-financed road construction contracts'.

New Delhi: The World Bank found Progressive Constructions Limited — founded by Union textile minister Kavuri Sambasiva Rao —  to have “engaged in sancationable practices” in connection with the Lucknow-Muzaffarpur National Highway project.

According to the World Bank, PCL was charged of having “engaged in fraudulent practices in connection with its execution of three Bank-financed road construction contracts by submitting numerous fraudulent documents misrepresenting” the company’s use of mobilisation and materials advances.”


The three-page debarment order was passed on November 26, 2013.

Calls made to PCL office in Hyderabad for their comments on the World Bank ban on the company did not elicit any reply, while phone calls and messages sent to the company’s founder, Union textiles minister and Congress leader K. Sambasiva Rao, also remained unanswered.

However, sources close to the minister claimed that he is not involved in operations of the company since 1983 and it is being run by his daughter.

While the World Bank has not named any promoters or top officials of the debarred company, PCL’s website shows Rao, currently Union textiles minister, set up Progressive Engineering Company as a partnership firm in 1966.

With expansion into other areas, this company was transformed into a Private and a limited liability entity in 1982, resulting into creation of Progressive Constructions Limited, the website says.