ED officials quiz Kishori Pednekar, former guardian minister alleges another BMC scam

On Wednesday, the Economic Offences Wing registered a case for alleged irregularities in the setting up of oxygen generation plants in nine civic hospitals and two Jumbo Covid centres. The ED has also begun the process of registering a fresh probe into this case

MUMBAI: As the Enforcement Directorate’s inquiries into alleged Covid-19 scams continue apace, one more politician was questioned in the body bags case: Shiv Sena (UBT) leader Kishori Pednekar, who was interrogated for six hours on Thursday by ED officials. Simultaneously, two letters written by former guardian minister Aslam Shaikh in 2021 to civic chief I S Chahal, objecting to the award of another pandemic contract to a “bogus” company, have also come to light.

Mumbai, India –Nov 23, 2023: Former Mumbai Mayor Kishori Pednekar leaves after an inquiry from the Enforcement Directorate (ED) office in connection with the Covid body bag scam case, in Mumbai, India, on Thursday, Nov 23, 2023. (Photo by Bhushan Koyande/HT Photo)

The relentless investigations into the Covid 19 scams have chipped away at the image of the Sena (UBT), which was in power in the BMC during the pandemic. They have been particularly instrumental in wiping out the one USP of the party’s leader, Uddhav Thackeray, which is the tremendous goodwill that he had garnered from Mumbaikars for his efficient handling of the pandemic.

On Wednesday, the Economic Offences Wing registered a case for alleged irregularities in the setting up of oxygen generation plants in nine civic hospitals and two Jumbo Covid centres. The ED too has begun the process of registering a fresh probe into this case.

“The contractor, Highway Construction Company, procured the oxygen from another Delhi-based supplier for ₹20 crore but the BMC had to pay ₹80 crore for the same,” said an agency source. “The same contractor had also charged the BMC ₹60 crore in another similar contract, though it is suspected that he may have spent only ₹12 crore.” The agency had conducted searches at the premises of the contractor earlier and allegedly recovered cash of around ₹1 crore.

On Wednesday, two strongly worded letters written by MLA Aslam Shaikh to BMC commissioner Chahal against Highway Construction Company came to light. The letters dated June 21 and July 12, 2021, refer to Highway Construction Company as a “bogus company” and object to its being given the contract. Despite the letters, copies of which are with HT, the BMC went ahead and awarded the contract anyway. Shaikh said he had written to the BMC on the same subject in the past as well.

In his July 12 letter, Shaikh wrote, “New tenders were floated once again by MCGM for installation of oxygen generator plants. In the said tender, only two bids were received, of which one bid was of Highway Construction Company, which also happens to be the same company that was awarded the earlier tender even though it was a single bid and was above cost estimate despite several complaints and objections. I have been given to understand that as part of the previous letter of acceptance issued on June 14, 2021, all 16 sites were to be handed over to this company, wherein oxygen generator plants are to be installed.”

Shaikh pointed out that the BMC was paying a high price in spite of other urban local bodies and state governments purchasing the same plants at a low price. “I am also given to understand that the company is already hand-in-glove with certain department engineers…” says the letter. Shaikh also alleged that all the products were being imported from China and were of substandard quality, and directed the civic chief to scrutinise all the documents of the company and its manufacturers.

The MLA also drew attention to the fact that there were highly qualified companies in the business of manufacturing oxygen plants, which they had supplied to state governments during the pandemic—however, he claimed, these companies were not even considering putting in bids because of “match fixing”. He directed Chahal not to award any further tender to Highway Construction Company until its performance was satisfactory and all 16 plants, for which the work order was already issued, were installed and ready on July 17, 2021,

Shaikh could not be reached despite several attempts.

Former MP Kirit Somaiya claimed that Highway Construction Company had been blacklisted by the BMC itself in the past. “Chahal is accountable as he has overruled the guardian minister’s two crucial letters of 2021,” he said. “Neither the seven-level committee nor he took cognisance of the letters. It is Chahal’s duty to clarify whether he succumbed to political pressure and why this contract was awarded to an already blacklisted contractor.”

Chahal, when questioned, said that the BMC would never award contracts to a blacklisted contractor. “There are seven levels of recommendation before I sign, which includes the executive engineer, additional municipal commissioner and so on,” he said. “Very often, allegations are made which are not factually correct. An oversight by a seven-level committee is not possible. Many times, people have the impression that a contractor is blacklisted when he isn’t.”

Meanwhile, on Thursday, Sena (UBT) leader Kishori Pednekar was questioned about the circumstances under which the body bags contract was given to a supplier from Aurangabad. It was alleged that the BMC purchased the bags from the supplier at around ₹6,800 a piece, even though he sold the bags to other government entities for ₹2,000 apiece. The ED is probing the allegation that the contract was given on the instructions of Pednekar.

Pednekar, however, denied the allegation. “I was called as part of the ED enquiry,” she said. “As a citizen, I must cooperate with the inquiry and I have done that. They asked me questions and I answered them. They also need certain documents, and I will provide them through my lawyer soon.”

ED officials confirmed that the former mayor had denied the allegations and said that so far, they had not come across any monetary transaction involving Pednekar in the case.