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ED conducts searches at 12 locations in alleged embezzlement of funds from DJB
The federal agency’s probe under prevention of money laundering act (PMLA) is based on a November 12, 2022 first information report (FIR) by the Anti-Corruption Branch (ACB) of Delhi
The Enforcement Directorate (ED) has carried out searches at 12 locations in Delhi and Kerala in connection with a money laundering probe linked to alleged embezzlement of funds from the Delhi Jal Board (DJB), people familiar with the development said on Tuesday.
The searches were carried out on Monday, during which documents and technical evidence were seized.
The federal agency’s probe under prevention of money laundering act (PMLA) is based on a November 12, 2022 first information report (FIR) by the Anti-Corruption Branch (ACB) of Delhi, which alleges embezzlement of ₹20 crore by private individuals in connivance with the DJB officials and Corporation Bank (now Union Bank of India) officials.
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The alleged embezzlement of funds took place in 2012 contract related to setting up of automative payment collection machines at different locations in different DJB offices as decided by the Board for facilitating consumers to pay bills through various modes of payments including cash and cheques to Corporation Bank. The bank further gave this contract to a company - Fresh Pay IT Solutions, which further gave it to Aurrum e-Payments Pvt Ltd.
According to a press statement issued by ACB in February this year, the contract was up to October 2019 but Aurrum collected the amount till March 2020.
It said Aurrum collected the amount from various kiosks in Delhi and brought it to its Connaught Place office. Thereafter, they embezzled the amount from cash collected and deposited the rest of the amount into its account with Federal Bank.
According to the ACB FIR, reviewed by HT, the vigilance department of DJB found in its enquiry that amount worth ₹20 crore was embezzled from DJB funds by private persons in connivance with Corporation Bank and DJB officials.
People cited above said there could be use of shell companies in the case, which is being investigated.