ED files chargesheet against Sena (UBT) functionary Suraj Chavan in khichdi ‘scam’

The ED probe revealed that Chavan had allegedly received ₹1.35 crore from an accused contractor firm, M/s Force One Multi Services, out of the latter’s illegal generation of profits/ proceeds of crime worth ₹3.64 crore, agency sources said

MUMBAI: The Enforcement Directorate (ED) has submitted its chargesheet against Suraj Chavan, a Shiv Sena (UBT) functionary who is perceived to be close to a senior party leader, for his alleged role in the money-laundering case related to an alleged ₹6.37 crore scam pertaining to distribution of khichdi by the civic body among migrant workers during the Covid-19 pandemic.

Mumbai, India – June 26, 2023: Shiv Sena (UBT) leader Suraj Chavan arrives to appear before the Enforcement Directorate for questioning in BMC COVID scam case, at Ballard Pier, in Mumbai, India, on Monday, June 26, 2023. (Photo by Bhushan Koyande/HT Photo) (Hindustan Times)

The ED probe revealed that Chavan had allegedly received ₹1.35 crore from an accused contractor firm, M/s Force One Multi Services, out of the latter’s illegal generation of profits/ proceeds of crime worth ₹3.64 crore, agency sources said. This was done by allegedly showing Chavan as an employee of the firm from 2019 to 2020 and the said funds were transferred to him as salary and some in the form of personal loans from June 2020 to December 2020, agency sources said. Out of the alleged funds, ₹1.25 crore was allegedly diverted into the personal bank account of Chavan and a further ₹10 lakh into the bank account of his partnership firm, Fire Fighters Enterprises.

The ED probe found that to justify the payments, two allegedly forged and back-dated appointment letters, dated April 1 2019 and April 1 2020, were prepared in the name of Chavan in order to project him as an employee of M/s Force One Multi Services. In his statement to the ED on January 17, he had admitted allegedly that funds worth ₹1.35 crore came into his account and his partnership firm. Chavan however denied any wrongdoing in the case on his part and claimed that the money he received from the accused firm was by way of salary and loans in the capacity of him being its employee.

The ED also accused Chavan of managing the award of one of the civic khichdi work - orders to Force One due to his proximity with senior political leaders/ influential persons. The ED probe found that all the preparation, packing and transportation–related works were handled by the firm Force One Multi Services and no role allegedly was played by Chavan in supplying packets of khichdi to BMC, agency sources said. The probe also revealed that the contractor, Force One Multi Services, allegedly did not have its own kitchen and had no licence from the Department of Health or the Food and Drug Administration. It was allegedly engaged in the provision of sand, bricks and security and did not fit the eligibility criteria to get the khichdi supply work orders, according to the agency.

Chavan’s lawyers had earlier told a city special court, where he had been produced for remand after his arrest in January, that no offence was made out against him, he was not guilty and therefore his arrest was an abuse of the process of law. His lawyers had also contended that the alleged offence occurred during the Covid lockdown, when there was a priority to provide help to needy and poor people and that any proximity with politicians cannot be grounds for an arrest.

The agency had arrested Chavan on January 17 and he is in judicial custody currently. The ED’s investigation was part of a probe into the BMC’s total expenditure on Covid-19 contracts. The ED began its money-laundering investigation on the basis of a September 2023 First Information Report of the Mumbai police’s Economic Offences Wing (EOW) that alleged there were irregularities worth ₹6.37 crore in the case. It was alleged that the BMC gave instructions for the allotment of khichdi supply to two entities, Sahyadri Refreshments and Force One Multi Services, which did not fit the eligibility criteria. The two contracts allegedly led to a loss of ₹6.37 crore to the civic body, according to the ED.