R. Suryamurthy / NEW DELHI
The Public Accounts Committee (PAC) has sharply criticized the Ministry of External Affairs (MEA) for enabling serious financial and procedural violations at the Indian High Commission in London, accusing the Ministry of shielding delinquent officials and failing to enforce accountability.
In its 26th Report tabled in the Lok Sabha on July 29, 2025, the PAC exposed two major irregularities at India House, London. First, the Mission allowed a private entity to receive and retain GBP 90,000 (Rs 78.41 lakh) in a personal bank account—public funds that were then used to settle routine Mission expenses. Second, a basement renovation project worth GBP 744,971 (Rs 6.63 crore) was executed without prior MEA approval, awarded to an ineligible firm through a manipulated tender, and followed by further work handed to a related shell company.
The PAC described these acts as “grossly irregular and manipulated,” suggesting deliberate collusion between officials and contractors. Despite the gravity of the violations, the MEA claimed “no mala fide intent could be established,” limiting its action to internal disciplinary steps. The PAC rejected this as “indefensibly lenient,” stating the Ministry appeared more intent on “protecting delinquent officers” than upholding transparency.
The Committee demanded criminal proceedings against those involved, citing the clear breach of rules, misuse of public funds, and fraud in contract awards.
The report also flagged systemic weaknesses in the MEA’s internal audit mechanisms. The Ministry discovered the violations only after external auditors flagged them—despite repeated PAC warnings in earlier reports. The Committee warned of “a widespread prevalence of such irregularities in almost all Missions” and called for a full overhaul of the audit framework, including compliance audits and strict timelines for corrective action.
In addition, the PAC criticized the MEA for failing to implement long-promised reforms, such as an online dashboard for project tracking and a Project Management Unit (PMU). It also condemned the Ministry’s “dismissive” response to its recommendation for a special audit of high-risk Missions.
Chaired by Congress MP K.C. Venugopal, the PAC adopted the report on June 17. With Parliament now seized of the findings, pressure is likely to mount on the MEA to initiate criminal proceedings and undertake structural reforms. The Ministry has yet to issue a formal response.