Covid purchase irregularities: EOW books ex-mayor Kishori Pednekar, two BMC officials

The case was registered at the Agripada police station on Friday. Incidentally, chief minister Eknath Shinde also indicated that action will be taken against Covid irregularities during his speech at the Maharashtra Legislative Assembly on Friday

MUMBAI: The Economic Offences Wing (EOW) of Mumbai police has booked former city mayor and Shiv Sena (UBT) leader Kishori Pednekar and two civic officials, including senior IAS officer P Velarasu in connection with alleged corruption involving the purchase of body bags at inflated rates during the Covid-19 pandemic.

Mumbai, India - November 25, 2020: Mumbai Mayor Kishori Pednekar during an interview at Mayor bunglow, Byculla in Mumbai, India, on Wednesday, November 25, 2020.(Photo By Pratik Chorge/Hindustan Times)

The case was registered at the Agripada police station on Friday. Incidentally, chief minister Eknath Shinde also indicated that action will be taken against Covid irregularities during his speech at the Maharashtra Legislative Assembly on Friday.

Shiv Sena (UBT) MP Arvind Sawant claimed, “Pednekar has been framed because she refused to leave Uddhav Thackeray’s party to join Eknath Shinde’s camp and this action is nothing but pressure tactics ahead of the civic polls.”

The case has been registered based on a complaint lodged by an EOW officer, who carried out a preliminary inquiry into the matter. A complaint was received initially from BJP leader Kirit Somaiya after which the preliminary inquiry was initiated last month.

The others booked in connection with the case include a former additional municipal commissioner (Projects), ex-deputy municipal commissioner of the Central Purchase Department (CPD), director of Vedanta Innotech Private Ltd (VIPL), and some public servants (PS), according to EOW sources.

The private company, which is under EOW scanner, had allegedly supplied body bags for dead Covid-19 patients to the Brihanmumbai Municipal Corporation (BMC) at ₹6,719 a piece, which was over three times ( ₹1,500 per piece) what it had charged other private hospitals or government authorities during the same period, an earlier inquiry had revealed.

According to the EOW, Pednekar, unknown public servants and private persons entrusted with the use of funds of the BMC hatched a criminal conspiracy to favour VIPL, its directors and defrauded the BMC to the tune of ₹49,63,200.

When HT contacted P Velarasu in connection to the case, he said “I did my public duty during the pandemic with utmost dedication. That is all I have to say right now.”

“According to the preliminary inquiry, on April 8, 2020, the BMC’s CPD had floated an Expression of Interest (EOI) to purchase 1,000 body bags for COVID-19 victims. After going through the tendering process, the civic body had given the contract to Vedanta Innotech Pvt Ltd (VIPL) to supply 1,000 body bags at the rate of ₹6,719 per bag,” said an EOW official.

On April 14, 2020, CPD again floated EOI-2 and this time also VIPL was the sole eligible vendor after the scrutiny of bids received therefore the BMC decided to invite fresh tenders. Accordingly, on April 29, fresh EOI-3 was floated and two vendors were found to be qualified - Care One Solutions and VIPL. Testing of samples was also conducted and both of them qualified. Care One Solutions had offered to supply body bags at the rate of ₹2,583 per bag.

“Meantime, Pednekar, the then Mayor called Haridas Rathod, who was holding additional charge of Deputy Dean, CPD, BMC at her official bungalow at Rani Baug, Byculla and told him to give the contract to Vedanta,” said an EOW officer.

However, Rathod gave the purchase order to Care One Solutions for the purchase of 1,000 body bags. However, the first lot of 200 body bags supplied at Andheri Sports Complex was rejected by BMC for no valid reasons the investigators have found.

“The BMC immediately re-tested the samples and rejected the purchase order issued to Care One Solutions without waiting for the retest results, claiming that the products were unfit. BMC thereafter continued to purchase body bags from VIPL till 2023 at the rate of ₹6,719 per bag despite Care One Solutions supplying 100 bags to one of the BMC hospitals at just ₹2,925 per bag. BMC purchased 1,200 body bags for total consideration of over ₹80 lakh,” said an EOW official.

EOW officials said the accused in the case are booked for under sections 409 (criminal breach of trust by public servant, or by banker, merchant or agent, cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect), 418 (cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect), 420 (cheating) and 120-B (criminal conspiracy) of the Indian Penal Code.

With inputs from Saurabha Kulshreshtha