₹41L recovered during raids on STP projects of DJB: ED

Delhi water minister Atishi alleged that ED was working on the directives of the Bharatiya Janata Party

The Enforcement Directorate (ED) on Thursday recovered ₹41 lakh and several “incriminating documents” after raiding multiple locations across the country concerning a money laundering probe linked to alleged corruption in the augmentation of some sewage treatment plants (STP) by the Delhi Jal Board (DJB), ED said on Friday.

“The AAP has never done corruption. They can do as much investigation as they want against us,” said Atishi (HT Photo)

The searches were primarily carried out at four locations, including Delhi, Mumbai, Ahmedabad and Hyderabad.

In a statement, the financial crimes probe agency said an investigation under the Prevention of Money Laundering Act (PMLA) has been initiated based on a first information report (FIR) filed by the Anti-Corruption Branch (ACB), Delhi, against a private company and others alleging a scam in DJB in the name of augmentation and upgradation of 10 STPs.

HT reached out to DJB which did not comment on the matter. Meanhwile, Delhi water minister Atishi alleged that ED was working on the directives of the Bharatiya Janata Party. “What ED does, who it works for and against is well known... everyone has seen the ‘washing machine’ of the BJP... when an ED accused joins BJP, the agency files a closure report... When Himanta Biswa Sarma became the CM of the BJP, ED closed the ‘hydro power scam’ case against him. They have been investigating the ‘liquor scam’ for two years, they did not find anything... The AAP has never done corruption. They can do as much investigation as they want against us,” Atishi added.

These four tenders, valued at ₹1,943 crore, were awarded to various joint venture (JV) entities in October 2022. According to ED, the FIR alleged that only three JV companies participated in the four tenders.

“While two JVs got one tender each, one JV got two tenders. The three JVs participated in the four STP tenders mutually to ensure that each one got the tender,” ED said.

It has also been alleged that the tendering conditions were made restrictive, including the adoption of Integrated fixed film activated sludge (IFAS) technology to ensure that a select few entities could participate in the four bids.

“The cost estimates initially prepared was ₹1,546 crore but was revised during the tender process to ₹1,943 crore. It is further alleged that the contracts were awarded to the three JVs at inflated rates which caused a substantive loss to the exchequer,” ED added. The PMLA probe, ED said, found that the four STP tenders of ₹1,943 crore were awarded by DJB to three JVs.

In all four tenders, two JVs (out of three common JVs) participated in each tender and all three secured the tenders, the agency said.

“The costs adopted by DJB for upgradation and augmentation were the same though the cost of upgradation is lesser than the cost for augmentation. All three JVs submitted the same experience certificate issued from a Taiwan Project to DJB for securing the tenders and the same was accepted without verifications,” it added.

Subsequently, the three JVs subcontracted the work related to the four tenders to a single company in Hyderabad. The verification of the tender documents showed that the initial cost of the tenders was revised without following due process/project reports, ED has said.

Delhi BJP spokesperson Praveen Shankar Kapoor said that the people of Delhi are amazed to see Atishi defending corruption in the Delhi Jal Board. “Before commenting, she should have known that there has been a massive cash recovery during ED raids. She should recall DJB is a government body whose accounts have not been prepared nor kept in public domain for almost a decade. People of Delhi will soon give a befitting reply to the AAP in 2025 assembly elections.”