EOW gives clean chit to BJP MLC Prasad Lad

This is the third instance of the police giving clean chit to BJP leaders in the fortnight. The case was based on a complaint lodged by the builder and businessman Bimal Agarwal, claiming that he was cheated by Lad and others of crores of rupees.

Mumbai. The Economic Offences Wing (EOW), Mumbai police, has given a clean chit to BJP MLC (Member of Legislative Council) Prasad Lad in a cheating case registered against him related to the 2014 civic contract. The EOW, in its closure report, stated that there was no material to proceed against Lad and the dispute was civil.

Lad was booked by the Malad police on December 7, 2014, as a partner in the BVG-Krystal Joint Venture for cheating and breach of trust. On March 19, 2015, the case was transferred to the EOW for further investigation. (HT PHOTO)

This is the third instance of the police giving clean chit to BJP leaders in the fortnight. The case was based on a complaint lodged by the builder and businessman Bimal Agarwal, claiming that he was cheated by Lad and others of crores of rupees.

Lad was booked by the Malad police on December 7, 2014, as a partner in the BVG-Krystal Joint Venture for cheating and breach of trust. On March 19, 2015, the case was transferred to the EOW for further investigation.

Lad is the director of a company named Krystal Tradecom Pvt Ltd. As per the EOW’s case, in 2009, he, along with co-accused Hanmant Gaikwad’s BVG Limited company formed a joint venture (JV) partnership firm called BVG-Krystal Joint Venture. The JV had won tenders for the construction of compound walls around water reservoirs and pumping stations.

“It was mutually decided and an MoU was also signed between Agarwal, Lad and others. The MoU stated that after BVG-Krystal Joint Venture wins the tender, Agarwal will do and would also put in the money required for the work and would pay a royalty of 5% to BVG and Krystal as the tender work progressed,” states the complaint.

As per the MoU, Agarwal was the sole signing authority for the BVG-Krystal Joint Venture for all banking transactions and the JV was not to open separate accounts without Agarwal’s permission. Agarwal was also given the Power of Attorney (POA) to enable him to complete the work.

In 2012, the tender work was completed and according to Lad around the same time, Agarwal was investigated for the alleged Value Added Tax (VAT) evasion, and therefore Agarwal’s POA was cancelled by Lad and Gaikwad.

They also wrote to the bank informing them that now they would be the signing authority. But Agarwal said this was done in violation of the terms of the MoU.

“Lad and Gaikwad allegedly opened a new current bank account and requested BMC to make payment in the said vendor bank account. BMC paid ₹2.32 crores of the tender work in the said bank account. This is how they cheated me,” said Agarwal in his complaint to EOW.

As per the complaint, Agarwal completed BMC’s tender work and was supposed to get ₹10.25 crore from the civic body for the same. However, BVG company’s Gaikwad, along with BVG Krystal Joint Venture’s Lad and others allegedly breached Agarwal’s trust, and with the help of BMC officers through impersonation, they fraudulently took the money.

After completing the investigation in the case, inspector Sandesh Manjarekar and unit in-charge inspector Vinay Ghorpade of the general cheating unit of EOW has filed a closure report in the case against Lad and others in a city court last week, stating the case was of civil nature and there was no material to proceed against the accused persons.

Earlier, the EOW gave a clean chit to the former leader of the opposition in the legislative council Pravin Darekar of BJP in a 2015 case of financial irregularities in Mumbai District Central Cooperative Bank Ltd. The EOW submitted a chargesheet against three others and dropped the case against Darekar, then the bank chairman. The EOW said there was no evidence.

EOW, on Wednesday, also filed a closure report and gave a clean chit to BJP leader Kirit Somaiya in connection with the alleged misappropriation of funds collected to save aircraft carrier INS Vikrant from scrapping.