Jumbo Covid centres case: ED attaches assets worth ₹12.24-crore of LHMS partners, associates

The Enforcement Directorate has provisionally attached assets worth ₹12.24 crore in a money-laundering case related to alleged irregularities in a medical manpower contract awarded by BMC during the pandemic. The assets belong to the partners of Lifeline Hospital Management Services and their alleged accomplice.

MUMBAI: The Enforcement Directorate (ED) has provisionally attached assets worth around ₹12.24 crore belonging to accused persons in the money-laundering case related to alleged irregularities linked to Brihanmumbai Municipal Corporation (BMC)’s award of medical manpower contract to Lifeline Hospital Management Services (LHMS) for two Jumbo Covid centres during the pandemic.

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The attached assets, movable as well as immovable, belong allegedly to the four partners of LHMS, businessman Sujit Patkar, Dr Hemant Gupta, Rajeev Salunkhe and Sanjay Shah and to also their alleged accomplice, Sunil Kadam, also known as Bala Kadam. The case pertained to alleged irregularities in the medical manpower contracts at the Jumbo Covid Centres at Dahisar and Worli awarded to LHMS.

The assets attached are in the form of three flats in Mumbai, mutual fund units and balances in bank accounts, ED sources said. Out of the total attached assets, assets worth around ₹2.81 crore belong to Patkar, who is allegedly close to Shiv Sena (UBT) Rajya Sabha member Sanjay Raut.

The ED began its probe into the case based upon a First Information Report registered by the Azad Maidan police in August 2022 following allegations of a scam worth ₹32.44 crore. ED’s investigation revealed that during June 2020, the BMC floated tender/contracts for manpower supply at various Jumbo Covid facilities for Intensive Care Units beds, oxygenated beds and non-oxygenated beds in Mumbai through two Expressions of Interest (EOI) dated June 22, 2020 and June 2020. LHMS had obtained the contract for the supply of staff members, like doctors, nurses and multi-purpose workers (ward boys, aayas and doctor’s assistants) and technicians to the Jumbo Covid facilities at Dahisar and Worli for the period of July 2020 to February 2022 allegedly on the basis of incomplete and false documents.

The probe further revealed that during the service period, the EOI conditions were allegedly not maintained by the LHMS partners and there was huge under-deployment of the staff members. The invoices were however submitted by the LHMS showing adequate staff attendance as per the EOI conditions through fake and fabricated attendance sheets and staff records at Dahisar Jumbo Covid facility, ED sources said.

Further, allegedly no records of attendance and staff data were submitted for the Worli Covid centre by the accused firm. Yet, the LHMS had in alleged connivance with some BMC staff managed to clear the invoices and received ₹32.44 crore from the BMC from September 2020 to June 2022, the ED probe found.

ED’s money-trail investigation under the Prevention of Money Laundering Act revealed that after the receipt of the amount from the BMC, Patkar and the other partners of LHMS had allegedly diverted the funds towards buying assets, repaying housing loans and investment in real estate, ED sources said. “All these identified assets, in the form of flats, mutual fund units and bank balances in two bank accounts, totalling around ₹12.24 crore, has been provisionally attached under the PMLA,” an ED source said.

Earlier in this case, Patkar and Dr Kishore Bisure, an ex-dean, BMC for the Dahisar Jumbo Covid centre, were arrested on July 19 this year by the ED. At present, they are in judicial custody. The ED has filed its chargesheet in the case against LHMS’ partners and associated persons/entities before a special PMLA Court on September 15 this year.