Varanasi Cruise Expansion Project Hits Major Roadblock with Rs 4 Crore Fraud Allegation
Ambitious plans to expand modern cruise services on the sacred Ganga river in Varanasi have encountered a significant setback following the emergence of a substantial financial scandal. A case of fraud exceeding Rs 4 crore has been officially registered against a private company based in Kerala, casting a shadow over tourism development initiatives in the historic city.
Details of the Alleged Financial Scam
The controversy centers around Alaknanda Cruiseline Limited, a company owned by local entrepreneur Vivek Malviya that operates tourism-focused cruise services on the Ganga. In a bid to expand its business operations, the company entered into an agreement with Kochi-based Navalt Solar and Electric Boats Pvt Ltd for the construction of three state-of-the-art modern cruises.
The contractual agreement, finalized on August 1, 2022, stipulated a total project cost of Rs 5.6 crore. As per standard business practices, an advance payment of approximately Rs 1.5 crore was made on August 2, 2022, to confirm and initiate the order. The contract explicitly required that two of the three cruises be completed and delivered within a seven-month timeframe, with a strict deadline of March 2, 2023.
Project Delays and Financial Irregularities
Despite the clear contractual obligations and substantial financial investment, the project failed to progress as planned. Even after the March 2023 deadline passed, not a single cruise had been completed by the Kerala-based company. The aggrieved party, Alaknanda Cruiseline, reported that whenever they sought updates on construction progress, the company provided various excuses while simultaneously demanding additional funds for purported extra expenses.
During this period of stalled progress, the Kerala firm allegedly collected an additional Rs 20 lakh under the pretext of establishing a temporary shipyard facility in Ayodhya. According to documented financial records, the total payments made to Navalt Solar and Electric Boats Pvt Ltd had surpassed Rs 4 crore by December 27, 2023, yet there was no tangible progress or completed vessels to show for this substantial investment.
Legal Action and Police Investigation
After enduring a frustrating wait of nearly three and a half years without receiving either the completed cruises or a refund of the invested capital, Vivek Malviya decided to pursue legal recourse. The Lanka police station in Varanasi registered a formal case on April 14 under Section 316(5) of the Bharatiya Nyaya Sanhita, which pertains to criminal breach of trust.
The case names multiple directors and associates of the Kerala-based company, including:
- Sandidh Thandasheri
- Ramitha Madhu
- Santosh Kumar Krishnan
- Ajay Kumar C
- Shyam TS
- Jom Mathew
- Karthik GR
- LB Jay
- Jitu Haridas
Lanka Station House Officer Raj Kumar Sharma confirmed the registration of the case and indicated that investigations are currently underway to determine the full extent of the alleged financial misconduct.
Impact on Varanasi's Tourism Development
This scandal represents more than just a business dispute—it directly impacts the planned expansion of modern cruise services along the Ganga in Varanasi. The city, which attracts millions of pilgrims and tourists annually, had been positioning itself as a hub for enhanced river tourism experiences. The failure of this project not only represents a significant financial loss for the local entrepreneur but also delays potential tourism infrastructure development that could benefit the broader regional economy.
The case highlights the challenges faced by businesses when engaging in cross-state commercial agreements and underscores the importance of thorough due diligence in major procurement contracts. As the legal proceedings advance, stakeholders in Varanasi's tourism sector will be closely monitoring developments, hoping for resolution that might eventually allow the cruise expansion plans to proceed under more transparent and reliable circumstances.
