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ED raids 16 locations over irregularities in DJB contracts
ED said it launched a money laundering probe in two separate matters of irregularities in the tendering process of DJB.
The Enforcement Directorate (ED) has carried out raids at 16 locations associated with or belonging to officials of Delhi Jal Board (DJB), NBCC (India) Ltd, formerly known as National Buildings Construction Corporation, and private persons in connection with violation of norms and irregularities in at least two contracts of DJB, the agency said on Tuesday.
The searches were carried out on Monday in Kerala, Chennai and Delhi and the National Capital Region (NCR).
The financial crimes probe agency launched a money laundering probe in two separate matters of irregularities in the tendering process of DJB, ED said in a statement .
In the first matter, in which the Central Bureau of Investigation (CBI) filed a corruption case in July 2022, it is alleged that officials of DJB favoured NKG Infrastructure Limited while awarding a tender to the company for supply, installation, testing and commissioning of electromagnetic flow meters in connivance with officials of NBCC (lndia) Limited.
“NKG Infrastructure Limited managed to secure false performance certificates issued by DK Mittal, former general manager of NBCC (India) Limited and fabricated deviation statement issued by Sadhan Kumar, the then project executive, NBCC (lndia) Limited for qualifying for technical bid of above said tender in the year 2017. During the tender process, NKG Infrastructure Limited entered into conspiracy with DJB’s then chief engineer - Jagdish Kumar Arora and his subordinate officers for qualifying and bagging tender worth ₹38,02,33,080,” ED said in its statement.
DJB did not respond to requests for comment.
The second matter based on which ED launched a money laundering probe relates to a first information report (FIR) filed by the Anti-Corruption Branch of Delhi government in November 2022, in which DJB awarded a tender for setting up automotive bill payment collection machines (kiosks) at different locations in different DJB offices.
The kiosks were set up for facilitating consumers in bill payment through various modes of payments including cash and cheques and the tender was awarded to Corporation Bank in 2012, which was further sub-contracted to Chennai-based private companies Freshpay IT Solutions Pvt Ltd and Aurrum E-payments Pvt Ltd.
HT reached out to NKG Infrastructure, Aurrum, and Freshpay IT Solutions, but requests for comments remained unanswered.
“These companies violated norms as prescribed in the agreement by not depositing the cash payment collections in bank account of DJB, as stipulated in the agreement, and not transferring the same to DJB within the prescribed time period. The said contract was initially awarded for three years which was extended by DJB from time to time till FY2019-20 despite continued delay and non-transfer of bill payment amount collected for DJB,” ED said on Tuesday.
“Investigation revealed that during demonetization period, cash collections amounting to ₹10.40 crores was not deposited or transferred to DJB and funds collected in 2019 were reconciled with bill payments of demonetisation period after gap of more than 300 days”, the ED statement said.
ED said its probe has further revealed that total principal loss incurred to Delhi Jal Board during the whole period of the tender was ₹14.41 crores which is still outstanding with private entities, Freshpay IT Solutions Pvt Ltd and Aurrum E-payments Pvt Ltd and its director, Rajenderan K Nair.
“During the course of search proceedings, various incriminating documents, cash and digital devices were recovered and seized from the premises of officials of DJB, NBCC (India) Ltd and directors of private entities involved. Details of various undeclared properties in the name of Jagdish Kumar Arora were recovered and it was revealed that he was holding the said properties with the help of his chartered accountant and other known associates. In addition, details of utilization and embezzlement of public funds siphoned off by private persons in connivance with officials of DJB were also recovered. Further investigation in this matter is ongoing,” ED added.
