Delhi HC Seeks WAPCOS Financial Records After Counsel Calls It 'Sinking Ship'
The Delhi High Court has directed Mini Ratna public sector undertaking WAPCOS Limited to produce its audited balance sheets for the past five years after its own counsel described the company as a 'sinking ship' during a hearing on July 6.
Justice Sanjeev Narula recorded the submission by WAPCOS's counsel, who argued that the company lacks the financial capacity to sustain existing employees and has occasionally borrowed money to comply with court orders. The remarks were made in a case concerning employees seeking regularisation of their services.
However, the court noted that neither the original counter-affidavit nor two subsequent affidavits contained documentary evidence supporting the claim of financial distress. It also sought records related to the surrender of 682 of WAPCOS's 1,541 sanctioned posts and steps taken regarding irregularities in previous regularisation exercises.
A company official, speaking on condition of anonymity, denied instructing the counsel to use such language. While acknowledging that balance sheets had not fully accounted for bad debts from past corruption scandals, the official said the company is not in a dire financial position. The official added that contractual posts granted as favours are being rationalised as part of an organisational clean-up, and while regular employees continue to receive perks, the same cannot be extended to contractual ones.
WAPCOS, incorporated in 1969, provides engineering consultancy for water, power and infrastructure projects in over 75 countries, including the Afghan-India Friendship Dam. The court's order comes amid ongoing CBI investigations into former chairmen and managing directors for alleged financial irregularities.
According to WAPCOS's unaudited figures for 2024-25, turnover rose 9.8% to ₹1,680 crore and profit before tax increased 20.44% to ₹95 crore, contradicting the picture of a financially distressed company.
