The then MC executive engineer RC Diwan and private firm Selvel Media Services Pvt Ltd director Jimmy Subawalla are among those charged with cheating and criminal conspiracy by the CBI in the running and maintenance of 86 public toilets in the city.
The challan was filed in a local CBI court on Thursday, in which the central agency has brought down the alleged scam’s worth from Rs 13.6-crore (as mentioned in the FIR) to Rs 25 lakh after two years of investigations.
The central agency has set aside the advertising tax dues of Rs 6.3 crore mentioned in the FIR that the company allegedly did not pay to the civic body as the matter is sub-judice.
In the FIR registered in December 2014, the alleged loss was pegged at Rs 13.66 crore, which the municipal corporation purportedly suffered in terms of alleged violation of advertising fee and undue favours given to the private firm, Selvel Media
The CBI has filed challan against Diwan; Selvel director Subawalla and general manager Bishwadeep Dutta; director of Outdoor Communications Mysa Ganesh, and Selvel Media Services for cheating and criminal conspiracy.
The CBI did not file the challan against the then MC superintending engineer Sita Ram Aggarwal and the then chief engineer Sudip Kumar Bansal.
The CBI in the challan has justified the maintenance charges of Rs 3.82 crore and Rs 2.83 crore, which the MC paid to the company, contending that the toilets were not advertisement-friendly and would not have generated enough revenue to sustain the maintenance expenditure.
“Investigation has revealed that as per terms and conditions of detailed notice inviting tenders, minimum licence fee of Rs 500 per toilet was to be charged from Selvel Media Services.
However, RC Diwan exempted the same through the allotment letter executed with the said company in violation of terms and conditions. Thus, a loss of Rs 25.8 lakh occurred to the MC and the pecuniary gain to Selvel Media Services,” reads the challan. The CBI has also set aside the advertising tax amount of Rs 6.3 crore mentioned in the FIR that the company allegedly did not pay to the civic body, stating that the company has challenged the same in the high court.