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ED summons MMRDA commissioner in TopsGrup money laundering case
The MMRDA had earlier refuted all allegations in its statement to the Mumbai police's Economic Offenses Wing (EOW) which is also probing a case against TopsGrup.
The Enforcement Directorate (ED) has issued summons to R A Rajeev, commissioner, Mumbai Metropolitan Region Development Authority (MMRDA), in connection with the money laundering case linked to Rahul Nanda's security services firm, TopsGrup Security Services Limited (TGSSL) and Shiv Sena MLA Pratap Sarnaik.
According to ED, TGSSL signed a contract with MMRDA in 2014 according to which there were about 350 to 500 guards which were to be deployed at MMRDA sites on a monthly basis. Out of the same, only 70% of guards were actually deployed. However, the billing was done for all the guards according to contract.
The ED had in the past stated in the court that it appears that TopsGrup obtained the contract from MMRDA in collusion with Sarnaik through illegal means by a well thought out strategy. The aim of these illegal maneuvers was to get additional inadmissible benefit by inflating the bills at the cost of MMRDA and illegal cash gratification to Sarnaik for facilitating this scam. Against this active role and criminal conspiracy, Sarnaik used to get 50% profit earned out of the said contract through Amit Chandole, Sarnaik's close aide.
The ED now wants to record the statement of the Metropolitan Commissioner in connection with the alleged irregularities involving MMRDA.
The MMRDA released a statement on the development on Monday saying, "The matter pertains to the tenders pertaining to Tops Security from 2014-17. The MMRDA chief or Metropolitan Commissioner has been summoned for recording evidence. Since the Metropolitan Commissioner in that period, Urvinder Singh Madan has retired, the current commissioner RA Rajeev will be visiting the ED office on behalf of MMRDA though the case pertains to his predecessor’s tenure."
The MMRDA had earlier refuted all the allegations in its statement submitted to the Mumbai police's Economic Offenses Wing (EOW) which is also probing a case against TopsGrup.
The MMRDA submitted that alleged irregularities in providing 500 security guards by (Rahul Nanda's) TOPS Grup Security Services Limited (TGSSL) are baseless. In fact there was no strength of 500 at any given time in three shifts in a day.
The MMRDA's letter to the EOW states that there was no financial misconduct on its part while awarding contracts to the company for the security services and also making payment for the guards. All these works were done through a tendering process in accordance with the rules.
Earlier Sarnaik and his son Vihang were questioned by the ED in the case. Last year the central agency raided various premises of Sarnaik and Tops in Mumbai and Thane.
The ED had previously arrested Sarnaik's close associate Amit Chandole and Nanda's company's managing director M Shashidharan.
Sarnaik and his family members have already secured relief from the Supreme Court that directed ED to not to take any coercive action against the Sarnaik family.
(With inputs from Tanushree Venkatraman)
