ED raids 37 locations across NCR in classroom case probe

The raids targeted private contractors associated with the project, which is already under the scanner of the Delhi government’s Anti-Corruption Branch

The Enforcement Directorate (ED) on Wednesday raided 37 locations across the National Capital Region in connection with alleged financial irregularities in the construction of classrooms under the previous Delhi government, according to officials familiar with the investigation.

Security personnel seen stationed outside an office where an ED raid was conducted on Wednesday. (Sanchit Khanna/Hindustan Times)

The raids targeted private contractors associated with the project, which is already under the scanner of the Delhi government’s Anti-Corruption Branch (ACB), the people cited above said.

Senior Aam Aadmi Party (AAP) leaders and former Delhi ministers Manish Sisodia and Satyendar Jain being probed by ACB in the matter.

The ED’s case, filed under the Prevention of Money Laundering Act (PMLA), is based on a first information report (FIR) registered by ACB, which is investigating procedural lapses and alleged corruption in the construction of 12,748 semi-permanent classrooms in Delhi government schools. Originally pegged at ₹860 crore, the project’s cost reportedly escalated to over ₹2,800 crore — without fresh tenders or compliance with standard procurement rules.

In March this year, President Droupadi Murmu granted sanction for ACB to investigate both Sisodia and Jain under Section 17A of the Prevention of Corruption Act, which requires prior approval for initiating inquiries against public servants.

Sisodia, who was then education and finance minister, and Jain, who was the minister of Public Works Department (PWD), are accused of facilitating irregularities in the awarding and execution of the contract.

According to a senior ED officer, who asked not to be identified, the agency suspects the classroom construction was carried out at highly inflated rates, with several deviations from standard procedures. “The per-unit cost exceeded benchmarks seen even in high-end constructions like luxury hotels,” the officer said.

The ACB’s probe stems from a complaint by three BJP leaders, who alleged that the classrooms — meant to be semi-permanent structures with a lifespan of around 30 years — ended up costing ₹24.86 lakh per unit, compared to an estimated market cost of ₹5 lakh. The project was awarded to 34 contractors, many of whom allegedly had links to AAP leaders. The appointment of consultants and architects without due process, premature payments, and non-compliance with Central Vigilance Commission (CVC) guidelines are also part of the allegations.

Both ministers are already under scrutiny in separate cases: Sisodia in the Delhi excise policy investigation, and Jain in a disproportionate assets case.

ED officials said their preliminary findings indicate that the alleged irregularities took place between 2015 and 2023. “Despite an initial requirement for 2,405 classrooms, the project scope was arbitrarily increased to 7,180, and subsequently to 12,748 rooms without proper sanction or approvals resulting in cost escalations. Further there was unjustified adoption of richer specifications proposed by a private company,” an officer who asked not to be identified, said, adding that “cost escalations of up to 49% were observed.”

The agency has recovered “incriminating” documents, including original files of Delhi government and rubber stamps of officials of PWD from the premises of private contractor, forged letterheads of private contractors, among others, the officer said.

Delhi BJP president Virendra Sachdeva called the alleged scam one of the biggest under the Kejriwal-led government. “Despite repeated notices, the former ministers have evaded questioning and failed to cooperate with investigating agencies. Even when in power, their departments stonewalled information requests,” he said.

“They must understand now — the law has caught up. No matter how much they try to deflect, jail is inevitable,” Sachdeva added.

In response to these raids, AAP said, “The BJP is relentlessly bulldozing jhuggis and demolishing livelihoods of the poor and marginalized across Delhi. These so-called raids are nothing but a desperate attempt to divert public attention from that reality. The allegations are baseless, politically motivated, and timed only to distract from the BJP’s anti-people actions.“