World Bank blacklists Progressive Constructions for 11 years
The World Bank has debarred Progressive Constructions Ltd (PCL) for eleven years minimum for violating its 'fraud and corruption policy'.
The debarment would apply to all legal entities directly or indirectly controlled by the company, the World Bank said on Wednesday.
The ineligibility period began from November 26, 2013, the multilateral lender said.
The Hyderabad-based company, founded by Union Minister and Congress leader K Sambasiva Rao, has faced this sanction for violation of the procurement guidelines applicable to the World Bank-financed projects.
Calls made to the company for their comments did not elicit any reply, while phone calls and messages sent to Mr Rao and his office in New Delhi also remained unanswered.
"The period of ineligibility of Progressive Constructions Limited extends to any legal entity that it directly or indirectly controls," the bank said.
The World Bank, however, did not specify details of the concerned projects or contracts, as also the specific details of the violations.
While the bank has not named any promoters or top officials of the debarred company, PCL's website shows Mr Rao, Textiles Minister in the Union Cabinet at present, 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, according to the website.
Currently, PCL is headed by Srivani Mullapudi, its managing director, and it is engaged in infrastructure building for sectors like irrigation, power, rail, transport, housing and industrial establishments.
"The minimum period of ineligibility is the eleven-year period," the lender said.
In the past, the World Bank has blacklisted several Indian companies on similar grounds, while about a dozen of them are still under ineligibility period. Those having faced action in the past include Satyam, Wipro, Videocon and L&T group entities.
