The World Bank on Wednesday announced a two-year conditional non-debarment of an Indian company in connection with corrupt and fraudulent practices in two road infrastructure projects in Karnataka and Uttar Pradesh.
Egis India Consulting Engineers Private Limited is accused of corrupt and fraudulent practices in the Second Karnataka State Highway Improvement Project and the Uttar Pradesh Core Road Network Development Project.
The World Bank said that Egis India was sanctioned with conditional non-debarment.
This means that it remains eligible to participate in World Bank-financed projects as long as it complies with its obligations under the settlement agreement.
"Otherwise, the conditional non-debarment will convert to a sanction of debarment with conditional release, and the company then will become ineligible to participate in World Bank-financed projects until the conditions for release set out in the settlement agreement are met," the World Bank said.
A conditional non-debarment does not qualify for cross-debarment by the multilateral development banks that are signatories to the Agreement for Mutual Enforcement of Debarment Decisions, the statement noted.
Second Karnataka State Highway Improvement Project is designed to accelerate the development of the core road network in the state and improve the institutional effectiveness of road sector agencies.
The objectives of the UP-Core Road Network Development Project include building capacity for results-focused road safety management in the state.
"According to the facts of the case, which Egis India does not contest, Egis India made illegitimate payments to influence the release of contractual payments while implementing contracts under these two projects and submitted inflated invoices for reimbursable expense," the World Bank alleged.
The settlement agreement provides for a reduced period of sanction in light of the company's voluntary disclosures, cooperation, acceptance of responsibility, and voluntary remedial actions.
As a condition for release from sanction under the terms of the settlement agreement, the company commits to developing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines, the World Bank said.