Pratap Sarnaik-Topsgrup case: MMRDA denies allegations of irregularities in security contracts

The Mumbai Metropolitan Region Development Authority (MMRDA) has termed as baseless the claim of the Enforcement Directorate (ED) that Shiv Sena legislator Pratap

The Mumbai Metropolitan Region Development Authority (MMRDA) has termed as baseless the claim of the Enforcement Directorate (ED) that Shiv Sena legislator Pratap Sarnaik got kickbacks from Rahul Nanda, chairman and founder of Topsgrup security services provider in awarding security contracts by MMRDA.

MMRDA rubbished claims that Shiv Sena legislator Pratap Sarnaik got kickbacks from Rahul Nanda, chairman and founder of TopsGrup security services provider in awarding security contracts. (HT Photo)

MMRDA said the allegation of irregularities in providing 500 security guards by TopsGrup Security Services Limited (TGSSL) to the authority was baseless. The authority said it had never had the strength of 500 security guards at any given time in three shifts in a day.

MMRDA revealed this in its response to the questions of the economic offences wing (EOW) of the Mumbai Police, which is conducting a parallel investigation into the complaint against Rahul Nanda made by his company’s former vice-chairman Ramesh Iyer.

MMRDA’s letter of December 17 to deputy commissioners of police (DCP) EOW stated that there was no financial misconduct on its part while awarding contracts to the company for security services and making payment to the guards. All these works were done through a tendering process per the rules.

The letter stated that between 2013 and 2020, many companies had participated in the tender process. Six companies were recognised in the tender process, and TGSSL was one of them. TGSSL was appointed for providing manpower to guard MMRDA’s estate and properties by following due process of law.

“Time-to-time inspection had been made to inspect the total strength deployed at respective sites. There is a set mechanism in place for inspection of the sites to verify attendance, losses/damages, encroachment, etc. The security guards who had shown absent till the last day have been fined,” MMRDA’s letter stated.

ED had arrested Sarnaik’s close associate Amit Chandole and TGSSL managing director M Shashidharan, alleging that Topsgrup had obtained contracts from MMRDA in collusion with Sarnaik through illegal means. These illegal manoeuvres aimed to get undue benefit by inflating bills at the cost of MMRDA and illegal cash gratification to Sarnaik for facilitating this scam. Sarnaik used to get 50% of the profit earned of the said contract through Chandole, ED had claimed in its remand application.

It added that in 2014, a contract was signed by TGSSL with MMRDA under which 350 to 500 guards were to be deployed at MMRDA sites monthly. Out of the same, only 70% of guards were deployed. However, the billing was done for all the guards as per the contract and the wage details were submitted to MMRDA for 100% of the contract vałue.

EOW is probing cross complaints of Nanda and Iyer. Nanda has alleged that Iyer and other employees siphoned off the company’s money, while Iyer claimed that Nanda, through his company, indulged in massive misconduct and financial irregularities worth ₹175 crore.