What ED said about Delhi Jal Board-linked money laundering case

The Enforcement Directorate (ED) is investigating two separate matters of irregularities in the tendering process of the Delhi Jal Board (DJB).

A Delhi court on Thursday sent a retired chief engineer and a contractor to four-day ED custody in connection with a money laundering probe into alleged irregularities in the tendering process of the Delhi Jal Board (DJB).

Retired chief engineer Jagdish Kumar Arora (white jacket) and contractor Anil Kumar Aggarwal after their arrest by the Enforcement Directorate (ED) in connection with its money laundering probe.(PTI)

Special judge Bhupinder Singh sent Jagdish Kumar Arora, a retired chief engineer, and contractor Anil Kumar Aggarwal to the custody of the Enforcement Directorate after the federal agency claimed that their custodial interrogation was required to unearth the "larger conspiracy".

Both Arora and Aggrawal were arrested by ED on Wednesday.

Here's what the ED said about the case:

The investigation into this corruption case was initiated under the Prevention of Money Laundering Act (PMLA) 2002, following an FIR registered by the Central Bureau of Investigation (CBI). The FIR contained allegations of corruption and bribery within the Delhi Jal Board.

Jagdish Kumar Arora, who was the chief engineer of the Delhi Jal Board at the time, allegedly awarded a contract for the supply, installation, testing and commissioning of electromagnetic flow meters to NKG Infrastructure Ltd. for a total cost of ₹38 crore, despite the company not meeting the technical eligibility criteria. It was revealed during ED's investigation that NKG Infrastructure Ltd. secured the bid by submitting forged or false documents.

Further investigation revealed that NKG Infrastructure Ltd. subcontracted the work to Integral Screws Ltd., a firm owned by Anil Kumar Aggarwal. Upon receiving funds, Aggarwal allegedly transferred around ₹3 crore as a bribe to Jagdish Kumar Arora through various means, including cash and bank transactions. It was also discovered that bank accounts belonging to associates and relatives of Arora were utilised to transfer bribe amounts.

ED said that previous search operations on July 24, 2023, and November 17, 2023, resulted in the seizure of incriminating documents and evidence related to the case.

Arora and Aggarwal were produced before the Special Court on Thursday where the court granted ED custody of the accused individuals until February 5.