Jumbo Covid centres case: One partner returned ₹1 cr to firm after FIR, says ED

Gupta had allegedly received around ₹2.85 crore as his share as a partner in the firm that executed the contract related to the supply of medical manpower to the Jumbo Covid Centres in Dahisar and Worli, according to the ED, which recently chargesheeted LHMS and six persons, including Gupta and three other firm partners, along with two former civic health officials

Mumbai: The money laundering probe into alleged irregularities in the contract awarded by the BMC for two jumbo Covid centres to Lifeline Hospital Management Services (LHMS) has revealed that one of its four partners of the firm, Dr Hemant Gupta, had returned ₹1 crore from his share of the contract’s payments received from the civic body after allegations surfaced against the firm.

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Gupta had allegedly received around ₹2.85 crore as his share as a partner in the firm that executed the contract related to the supply of medical manpower to the Jumbo Covid Centres in Dahisar and Worli, according to the ED, which recently chargesheeted LHMS and six persons, including Gupta and three other firm partners, along with two former civic health officials.

“After unravelling of fraudulent activities of LHMS, several complaints against the firm and recording of the FIR, Gupta returned such diverted PoC (proceeds of crime), amounting to ₹1 crore into the account of the firm,” ED’s chargesheet said.

The ED probe began with an FIR lodged in August 2022 against the four partners LHMS and the firm, contracted by the BMC to set up two Jumbo Covid centres. According to the FIR, the company got the contract using allegedly forged documents. ED’s probe found that LHMS allegedly had neither experience in providing medical services nor adequate staff. It is accused of receiving around ₹31.84 crore from the BMC as part of the contract, even though 50% to 60% of the medical staff at the centres for which it billed the civic body was allegedly non-existent.

As a partner of LHMS, Gupta had a 30% shareholding in the firm and the ED accused him of hatching a conspiracy in connivance with other accused partners which resulted in the obtaining of the civic tender fraudulently. Gupta was allegedly made a partner to project him as an expert in the medical field who could take major/key responsibility for running the Jumbo Covid Hospitals at Dahisar and Worli, according to the ED.

“He has never rendered his services effectively in running the Covid centres by M/s Lifeline Management Services. He did not bother to safeguard the interest of patients in Covid centres, rather allowed all irregularities of under-deployment of the medical staff, for personal financial gains from the proceeds of crime generated by the accused firm through under-deployment of staff, “ the chargesheet said. “Gupta had actively participated in the process of the issuance of the contract of manpower supply to their firm and for this, he had attended meetings with BMC officials at the time of bidding, knowing all the deficiencies of the firm,” the chargesheet said.

“All the payments in the form of bank account transfers and TDS, totalling ₹32.44 crore, made to the firm are nothing but the proceeds of crime,” states the chargesheet.