ED issues notice to BMC chief Chahal

The Enforcement Directorate (ED) has issued notices to BMC chief Iqbal Singh Chahal and other civic officials, seeking details of the alleged illegal award of contracts to Lifeline Hospital Management Services during the Covid-19 pandemic. The medical services provider was contracted by BMC to provide services in Jumbo Covid Centres, allegedly causing a loss of ₹38 crore to the BMC coffers

Mumbai The Enforcement Directorate (ED) has issued notices to BMC chief Iqbal Singh Chahal and other civic officials, seeking details of the alleged illegal award of contracts to Lifeline Hospital Management Services (LHMS) during the Covid-19 pandemic. The medical services provider was contracted by BMC to provide services in Jumbo Covid Centres, allegedly causing a loss of ₹38 crore to the BMC coffers.

July 14, 2020: Iqbal Singh Chahal, takes charge as the New BMC Commissioner on May 8, 2020.

The Economic Offences Wing (EOW) of the Mumbai police has also sent similar notices to senior BMC officials, a fact confirmed by a senior EOW official on Friday. ED sources said that based on the criminal case being investigated by the Mumbai police, the agency has also launched a parallel probe to look into alleged money-laundering in the awarding of contracts to LHMS.

ED sources denied the rumours that the anti-money laundering agency had raided Chahal. “However, he may have been called for clarifications, as an FIR has been registered by the Mumbai police,” he said. When contacted on Friday evening, Chahal said he had “no idea” about the development.

In August last year, an FIR was registered following a complaint lodged by BJP leader Kirit Somaiya against four partners of LHMS, including Sujit Mukund Patkar, a family friend of Shiv Sena (UBT) leader Sanjay Raut. The others named in the FIR were Dr Hemant Ramsharan Gupta, Sanjay Madanlal Shah and Raju Nandkumar Salunkhe. In October 2022, the investigation of the case was transferred to the EOW.

In his complaint, Somaiya alleged that LHMS was given the contract to set up two Jumbo Covid Centres – one at Dahisar and the other at Worli – though it did not have any experience in providing healthcare facilities or medical services. The firm got the contract on the basis of forged documents, including its partnership deed, he alleged.

The BJP leader also alleged that the firm was blacklisted by the Pune Metropolitan Region Development Authority but it concealed this fact from the BMC and managed to get the contract for providing services to Jumbo Covid Centres.

Somaiya had earlier alleged that the pre-bid meeting for the 100-bed Jumbo facility at Dahisar was convened on June 25, 2020, and the expression of interest for the same was called on June 27. LHMS was established only on June 26 – a day after the expression of interests were invited.

“Thus, even before the partnership firm came into existence, the accused attended a pre-bid meeting and secured the contract for operation and management of Covid ICU beds at Dahisar, and were requested to mobilise manpower within seven days,” states the complaint that Somaiya filed before a metropolitan magistrate court in March last year.

Somaiya said that despite his police complaint, no action was taken for a very long time. “After constant follow-ups, the EOW four days ago and now the ED and I-T department have summoned the BMC officials,” he said. “The BMC officials had tried to cover up the misdeeds by Patkar and the former Uddhav Thackeray government. The officials released the money, citing medical emergencies. It is a ₹100-crore scam.”

Somaiya alleged that the scam was committed at the behest of powerful Shiv Sena (UBT) leaders during the tenure of the Thackeray government.

Meanwhile, based on a complaint lodged by the ministry of corporate affairs, the Marine Drive police on Friday registered a forgery case against two partners of Eternal Health Care Services LLP. Sandeep Gupta and Yogesh Ullengala of the company have been booked under Sections 465, 468, 471 and 34 of the Indian Penal Code.

BJP leader Kirit Somaiya has claimed that the accused Ullengala is closely associated with Sujit Patkar, Sena (UBT) MP Sanjay Raut’s close family friend. However, the police have not named Patkar in the FIR, which says that the accused company submitted false documents to the ministry for registration of their company. Somaiya claimed that Eternal Health Care Services LLP had also submitted a bid for the BMC’s Covid Centre tenders.