BMC desilting scam: ED probes claims of money laundering

MUMBAI: The Enforcement Directorate (ED) has sought a report from the Economic Offences Wing (EOW) in connection with the Brihanmumbai Municipal Corporation (BMC)

MUMBAI: The Enforcement Directorate (ED) has sought a report from the Economic Offences Wing (EOW) in connection with the Brihanmumbai Municipal Corporation (BMC) desilting scam to investigate money-laundering allegations.

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The EOW case is against contractors and civic officials who were alleged to have carried out shoddy cleaning of storm water drains in various parts of the city. ED will check the money trail in the case and have sought an FIR copy.

“We have sought a report from the EOW. We will examine the case from a money-laundering point of view. We will look into how the money was spent and if any money was diverted or siphoned off by influential people,” said a high-ranking ED officer.

An Enforcement Case Information Reports (ECIR) may be filed based on the findings of the preliminary probe.

The EOW had earlier arrested five contractors in the case. After the allegations came to light, the civic body initiated a probe into the desilting activities, after it was found that contractors carrying out the work had charged the civic body extra, by showing inflated work of removing and transporting silt. The faulty work had led to flooding in several areas in the city, after heavy rain, on June 19, last year.

The inquiry had stated that the contractors in connivance with civic officials attempted a scam of Rs 38 crore, which was 70% of the total amount of the desilting contracts for the year 2015-2016, by submitting bogus bills that civic officials approved. The report has thus suggested serious administrative action against the civic officials involved in helping contractors carry out fraudulent practices.