Sikkim vigilance cracks down on 1200 MW Teesta-III scam in state's biggest anti-corruption raid

In a sweeping multi-state operation, the Sikkim Vigilance Police (SVP) has launched its largest-ever raid targeting the controversial 1200 MW Teesta Stage III Hydro-Electric Project in Chungthang, North Sikkim. 

The crackdown follows a criminal complaint lodged on May 18, 2025, exposing a wide web of alleged corruption, criminal misconduct, and fraud.

The raids, carried out over May 22 to 24, spanned across Delhi, Hyderabad, Visakhapatnam, Siliguri, and Gangtok, targeting the homes and offices of former Principal Chief Engineers (PCEs)-cum-Secretaries, ex-Chairmen and MDs of Teesta Urja Ltd, contractors, and unnamed officials from both Sikkim and Central Government departments.

A large cache of incriminating documents, digital records, foreign currency (USD), bank details, passports, and property documents was seized during the coordinated operation. 

According to SVP, this material could serve as key evidence in unravelling a massive scandal that may have compromised dam safety, resulting in structural failure and endangering lives downstream.

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Preliminary investigations reveal that the Independent Power Producer (IPP) selection process was deliberately manipulated. Authorities allegedly bypassed established norms to favour a non-qualified, in-house consortium. 

The Teesta Urja Ltd., a Special Purpose Vehicle (SPV) tasked with project execution, is accused of gross violations of its agreement, misleading government officials, and compromising dam design parameters.

SVP suspects that illicit financial incentives were exchanged in return for approvals, with retired officials used as conduits for laundering kickbacks under the guise of consultancy fees. There are also concerns about illegal clearances from central departments, granted in collusion with insiders.

The Vigilance team is now focused on tracing proceeds of crime (PoC), identifying assets acquired through illicit means, and preparing for legal attachment of properties, including those held by family members of the accused.

This high-profile investigation is expected to shake Sikkim’s power corridors, with SVP vowing to untangle the entire conspiracy and bring all perpetrators to justice.