HPCL CMD’s ₹10 Lakh-Per-Month Rented Residence Raises Questions of Accountability

Hindustan Petroleum Corporation Limited (HPCL) is facing uncomfortable questions after its Chairman and Managing Director (CMD), Vikas Kaushal, chose to reside in a rented luxury apartment in Mumbai’s posh Nariman Point instead of moving into the official bungalow allotted to him by the company.

According to documents and sources reviewed by indianpsu.com, the rented flat in the high-profile apartment is costing HPCL more than ₹10 lakh per month. At a time when PSUs are regularly urged by the Government of India to follow strict austerity measures, the decision has raised eyebrows over extravagance, transparency, and corporate governance.

Official Residence Lying Vacant

HPCL has a designated bungalow for its CMD in Chembur, Mumbai, which continues to lie vacant. No formal reason has been provided for why the top executive has declined to occupy the residence allotted as per company policy.

Lavish Rented Accommodation

The choice of a ₹10 lakh-plus monthly rental has triggered questions both within HPCL and among public sector observers. Who authorized this arrangement? Was the HPCL Board consulted? Are there precedents of CMDs or Directors of Maharatna PSUs living in such expensive rented accommodation?

The annual burden on HPCL for this arrangement is estimated at over ₹1.2 crore — a figure that stands in sharp contrast to the austerity guidelines that PSUs are expected to uphold.

Contradiction With Salary Cut

Adding to the controversy is the CMD’s own public declaration of an 80% salary cut. Critics argue that the heavy rental expenditure negates the symbolism of personal austerity and sends a conflicting message to employees and stakeholders.

Ministry, Audit and CAG Oversight

It remains unclear whether the Ministry of Petroleum & Natural Gas was informed of this arrangement and if it approved the same. Nor is there any indication yet that HPCL’s Audit Committee or the Comptroller and Auditor General (CAG) has reviewed the expenditure.

Transparency advocates stress that the matter should be placed on record in HPCL’s annual report under “perquisites of CMD” to avoid setting a precedent for future top executives to disregard housing norms.

On this matter, www.indianpsu.com spoke to Senior Advocate and former Vice President of Supreme Court Bar Association, Mr. Pradeep Rai, who said – A Chairman or CMD of a government department or Public Sector Undertaking (PSU) is a public servant, governed by the Central Civil Services (Conduct) Rules and other applicable government regulations. When such an officer is entitled to official accommodation of a specified type or category, and that accommodation is available, it is mandatory for them to occupy the same.

He further said “if, instead, the officer opts to reside in a private residence, guest house, or hotel without official sanction, they automatically forfeit their entitlement to House Rent Allowance (HRA). Moreover, in cases where the rent paid for the private accommodation exceeds the permissible HRA or salary ceiling—particularly when suitable government accommodation was available—the excess expenditure is liable to be recovered from the officer’s personal account”.

Former Working President of the Hindustan Petroleum Management Staff Association, Mr. Uday Shankar, has questioned the unnecessary splurge of public money when a spacious and well-equipped official bungalow is already available for the CMD. He pointed out that all previous CMDs of HPCL have stayed in the same Chembur bungalow, which offers premium facilities such as a clubhouse, swimming pool, and robust security arrangements.

Mr. Shankar asked, “When a comfortable and secure official residence is already in place, why should the present CMD choose to live in an expensive rented flat at Nariman Point?”

The CMD’s Response

When www.indianpsu.com – sent many emails and phone calls to the Corporate Communications Department of HPCL for clarification, no official reply was provided. Instead, reacting to our emailed questionnaire, CMD Vikas Kaushal made a curt WhatsApp call to the newsroom, bluntly stating that we should “do whatever is in our capacity” and warning that we should “never ever send him an email of this nature.”

Email sent by www.indianpsu.com to Secretary Petroleum, Pankaj Jain, also failed to elicit a response.

The dismissive response has only intensified concerns about accountability and the culture of transparency within one of India’s largest state-owned oil companies.

Awaiting Clarity

Employees, trade unions, and the wider public sector community are now waiting for a clear statement from HPCL and the Ministry of Petroleum & Natural Gas on why such an arrangement was sanctioned and how the expenditure is being justified.

As questions mount, this episode underscores once again the need for greater transparency in the functioning of Maharatna PSUs — where public money and public trust are at stake.

Our Prime Minister, Shri Narendra Modi, has been consistently advocating for austerity measures and emphasizing the importance of cost-cutting in the current economic scenario. Yet, it seems his message has not reached the right ears.

The golden question remains — why should public money be spent on someone’s personal luxury?

As fashion designer Jil Sander once said, “I am convinced that there can be luxury in simplicity.”

We Report – You Decide…