Delhi Tourism Minister Kapil Mishra said on Wednesday that his ministry will file an FIR against security contractor Kore Securities while recommending the termination of contract with the company with immediate effect.
The Delhi government has also recommended the company to be blacklisted from future businesses.
According to a government statement, Kore Securities has been accused of committing ‘massive violation of existing labour laws’ and while allegedly conducting ‘financial fraud at a grand scale.’
The statement added, “The security contractor, Kore Securities, was collecting over Rs. 22,000 per security guard per month while paying only Rs. 8,000 to each guard, as opposed to the contractually agreed upon Rs. 13,000 per month. This fraud brings the amount paid to security guards lower than the minimum wage in Delhi.No weekly off-days were provided to security guards (601 in total) whilst the company continued to bill the Delhi Government, effectively robbing the security guards of their well-deserved salary.
“Security guards were working 12 hour shifts as per the re-negotiated contracts but were being paid for only 8 hours of service.The total loss to the exchequer is worked out to be over Rs. 5 crore. The components of this fraud include underpaid PF contributions to employees, underpayment of Rs. 5,000 per employee per month for guards working 12 hour shifts and overbilling of DTTDC for days that are taken off by employees only on paper but are working on ground.”
Mishra said, “The Delhi government led by CMArvind Kejriwal is firmly committed to eliminating corruption in Delhi.This is just another shining example of our action against those working against the interests of the people. And for that, we have to ensure that no corruption takes place by contractors who work with the Delhi Government. ”