Khichdi distribution scam: BMC dy municipal chief Sangeeta Hasnale appears before ED to record statement

The Enforcement Directorate (ED) has questioned Sangita Hasnale, deputy municipal commissioner, in connection with a money laundering probe related to alleged irregularities in the distribution of Khichdi among migrant workers during the Covid-19 pandemic. The ED is investigating the BMC's expenditure on COVID-related contracts and whether the vendors' kitchens had the capacity to provide the required food packets. The agency suspects that the scheme's contractor supplied khichdi at inflated rates with the help of certain civic officials. The investigation is based on an FIR registered by the Mumbai police's Economic Offences Wing.

MUMBAI: The Enforcement Directorate (ED) on Monday questioned Sangita Hasnale, deputy municipal commissioner for over eight hours in connection with the money laundering probe related to alleged irregularities in the distribution of Khichdi among migrant workers during the Covid-19 pandemic.

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Hasnale arrived at ED’s south Mumbai office at around 11.30 am on Monday pursuant to a summons issued by the agency. She left the ED office at around 8pm.

Agency officials said they are ascertaining her role and will scrutinise the details provided by her during her questioning. Hasnale was questioned mainly regarding the planning and operation of the civic scheme on the distribution of khichdi to migrant workers and other sections of stranded, poor people during the pandemic, the sources said.

The ED had earlier asked Hasnale to appear before its investigating team last Thursday, but she had sought an exemption due to her official engagements. She was assistant municipal commissioner during the time the Khichdi contract was allegedly planned for operation, sources said.

The ED is currently scanning various aspects of the BMC’s ₹4,000 crore expenditure on COVID-related contracts.

The ED is probing if the work orders given in connection with the civic scheme were without ascertaining whether the vendors’ kitchens had the capacity to make 5,000 food packets. The vendors were also required to have a certificate from the Municipal Health Department or from the relevant state government authority, sources said. The agency suspects that the scheme’s contractor had allegedly supplied khichdi to the BMC at inflated rates with the help of certain civic officials who are under the scanner.

It was alleged that the contractor that was given the contract by BMC to provide khichdi did not fit the criteria as it did not have the food licence and so it gave the sub-contact to another firm. It was also alleged that the food packets to be distributed were required to weigh 300 grams but they weighed less. It is also alleged that a few middlemen with political influence were at play who helped the contractors bag the supply contract in lieu of payments.

The agency will also be questioning a few other persons who were associated with the khichdi distribution scheme and whose premises were searched recently by the agency as part of its probe, the sources said. The ED is trying to reach the end - beneficiaries of the proceeds of crime generated in the case via the irregularities.

The ED had carried out recent searches at several locations in the city and the searched premises included those of Hasnale, the residential premises of a Shiv Sena (UBT) party secretary, Suraj Chavan, and the contractors tasked with the supply of khichdi during the pandemic.

The money laundering probe is based on the FIR registered by the Economic Offences Wing (EOW) of the Mumbai police last month over alleged irregularities worth ₹6.37 crore in the case. The EOW case was registered on September 1 against businessman Sujit Patkar, the close aide of a senior Shiv Sena (UBT) leader, two persons associated with Sahyadri Refreshments, Force One Multi Service’s partners and employees, Sneha Caterer’s partners, then assistant municipal commissioner (Planning) and other unidentified BMC officers. The EOW case was registered under several sections, including those related to cheating and criminal conspiracy under the Indian Penal Code.