The Delhi High Court recently heard a case regarding the financial health of WAPCOS Limited, a public sector undertaking under the Union Jal Shakti Ministry. During the proceedings on July 6,counsel for WAPCOS described the company as 'sinking ship' that struggles to maintain its workforce and has occasionally needed to borrow funds to meet court obligations.
Justice Sanjeev Narula recorded these claims in an order,noting emphasis placed on WAPCOS's precarious financial situation . Counsel Mr. Sharma argued that the company lacks the resources to sustain its current employees, while Mr. Tushar Sannu, Senior Counsel,indicated that WAPCOS has been forced to take loans to comply with judicial mandates.
The case centers on employees seeking regularization of their positions within WAPCOS. The company contended that granting regular status to these workers would impose a financial strain that could threaten its operational viability. Established in 1969,WAPCOS has been involved in engineering consultancy for water,power,and infrastructure projects across more than 75 countries, with a significant focus on South Asia and Africa.
WAPCOS's portfolio includes notable projects such as the Afghan-India Friendship (Salma) Dam and various hydropower and irrigation initiatives. However,the court pointed out that the company's assertions lacked supporting evidence. It ordered WAPCOS to submit audited balance sheets for last five financial years and documentation related to the surrender of 682 of its 1,541 sanctioned posts, as well as findings from an internal committee regarding past irregularities in employment practices.
An anonymous company official disputed the characterization of WAPCOS as a 'sinking ship,' asserting that while the balance sheets had not fully accounted for previous bad debts linked to corruption scandals,the company was not in dire straits. The official explained that recent years had seen irregularities in job allocations,with many positions granted as favors,contrary to established recruitment norms.
As part of an organizational overhaul, the official indicated that these contractual roles need rationalization,aligning with Ministry guidelines . Despite ongoing legal challenges, the company aims to maintain benefits for its regular employees while limiting similar perks for contractual staff .
WAPCOS has faced scrutiny in recent years,particularly regarding allegations of financial misconduct involving former leadership. In May 2026,the Central Bureau of Investigation (CBI) charged former CMD Rajni Kant Agrawal with financial irregularities,reportedly linked to his son's educational expenses. Another former CMD, Rajinder Kumar Gupta,was implicated in 2023 for allegedly holding assets worth ₹7.91 crore beyond his known income sources. Gupta and his son were arrested, with authorities recovering ₹38.38 crore in cash during searches.
Despite these controversies,recent financial reports present a different picture . WAPCOS's unaudited turnover for 2024-25 rose by 9.8% to ₹1,680 crore,up from ₹1,530 crore the previous year. Profit before tax also increased by 20.44%,reaching ₹95 crore. These figures,while unaudited,challenge narrative of a company on the brink of collapse.
Moreover, WAPCOS's annual reports through 2023-24 indicate that public sector unit held ₹267.92 crore in cash and cash equivalents as of March 2024, a nearly 60% increase from the previous year . Statutory auditors did not express any significant concerns regarding the company's ability to continue operations .
The ongoing court proceedings and the financial scrutiny of WAPCOS highlight the complexities facing public sector undertakings in India,particularly in light of past corruption scandals and current economic pressures. As the case unfolds, the court's demand for transparency in WAPCOS's financial dealings will be critical in determining the future of its workforce and operational stability .
