The Enforcement Directorate (ED) recently conducted searches at 11 locations in Mumbai related to contractors and suppliers involved in an alleged bribe and Covid-related scam connected to the Brihanmumbai Municipal Corporation (BMC). The scam is estimated to be worth around ₹600 crore, with many contracts being awarded at inflated rates.
The ED is currently investigating the money laundering aspect of the BMC’s expenditure on pandemic-related contracts, which amounts to ₹4,000 crore. During the searches, numerous irregularities were discovered, prompting further investigation to identify the end-beneficiaries of the profits gained from the inflated contracts.
So far, the agency has seized ₹1.2 crore in cash from the premises of a civic contractor associated with a construction firm. An additional ₹60 lakh was recovered from another contractor, Romell Realtors.
All the contractors involved in the searches were interrogated, and their statements will be recorded at the ED’s office when they are summoned for questioning over the next two weeks.
One of the contractors under scrutiny, affiliated with a construction firm, allegedly charged the BMC ₹60 crore more than the actual cost for setting up oxygen plants at Jumbo Covid centers. The contractor purchased the oxygen from a supplier in Delhi for ₹20 crore but invoiced the BMC for ₹80 crore. The ED is investigating the reasons behind this excessive charge and tracing where the profits ended up.
Similarly, the same contractor allegedly overcharged the BMC ₹60 crore for another contract, despite incurring only ₹12 crore in expenses.
Romell Realtors, on the other hand, was contracted to assist in the establishment of a 2,000-bed Jumbo Covid center in Goregaon in June 2020. The company claims its contract was worth ₹11.36 crore, plus taxes, and that it supplied materials such as air-conditioner units, fans, and chairs. Romell Realtors denies any wrongdoing and states that after fulfilling its contract, it donated the remaining articles worth ₹2 crore to the BMC as part of its corporate social responsibility (CSR) initiative. The details of the contract are currently being verified.
Another contractor under investigation, an events management firm, supplied beds and other items to Covid centers. The ED is verifying whether the firm received approximately ₹88 crore for supplying two such centers.
The agency is also examining the activities of an Aurangabad-based contractor who allegedly provided body bags at inflated rates.
Last month, the ED conducted searches at 15 premises related to this case, including those belonging to businessman Sujit Patkar, party functionary Suraj Chavan, and the BMC’s former additional municipal commissioner, Sanjeev Jaiswal.
The investigation aims to uncover the truth behind these alleged scams and bring to light any wrongdoings or corruption involving BMC officials, middlemen, or others with political influence. The ED will continue its efforts to ensure transparency, accountability, and justice in the utilization of public funds during the pandemic.
