Officials from the Economic Crimes Wing (EOW) of the Mumbai Police on Wednesday registered a first data report (FIR) against a contractor and unnamed officials of the Brihanmumbai Municipal Corporation (BMC) in connection with fraud in contracts similar to the establishment of Covid-19 oxygen plants and causing a loss of Rs 6 crore to the civic framework. This is the fifth FIR filed through EOW in relation to the various irregularities that occurred during the Covid pandemic. Previously, four fraud-like FIRs were filed at the giant hub of Covid-Lifeline Hospitality Services, a khichdi scam, a frame bag scam, and a Remdesevir injection scam.
A senior EOW official showed the progress to The Indian Express.
EOW’s General Cheating-1 branch on Wednesday lodged a complaint against contractor Romil Chheda of Ghatkopar-based Highway Construction Company and concerned BMC officials. They were all booked under sections 418, 465, 467, 468, 471, 218, 120 (b) and 34 of the Indian Penal Code.
Contaminated businessman Chheda, who runs a fabric store and had no previous experience, was setting up oxygen factories for Covid-19 emergency in Mumbaikars, police sources said.
Chheda’s home had already been raided by ED in July this year in connection with irregularities in the oxygen plant’s contracts while they investigated other matters.
Chheda is the legal representative of Highway Construction Company, a company founded in Allahabad. Highway Construction Company is the same entity that sanctioned in the Byculla Zoo Penguin Enclosure scam, the resources said.
According to the EOW FIR, the alleged similar violations at oxygen plants were committed between April 2021 and January 2022 at Byculla-Est municipal workshop and oxygen production plants on the premises of nine BMC hospitals. .
According to the police report, in the initial investigation it was discovered that the officials involved in the BMC, who were in charge of the works of Contracts 1 and 2 (contracts for the structure of the oxygen power generation plant at the municipal hospital and the Jumbo Covid center), did not take into account the eligibility rules when awarding the contracts.
On behalf of Highway Construction Company, Unissi India Pvt. , the original manufacturer, did not meet the quality eligibility criteria. Despite this, the contract was awarded to Highway Construction Company.
The defendant, Romin Chheda, who had the power of attorney for the Highway Construction Company, allegedly colluded with other defendants to commit the alleged crime. ” Although the structure of the oxygen plant was not finished within the prescribed timeframe discussed in the contract, it has been proven that the paints of the plants were completed in August 2021. In addition, false collection and collection reports were made, and during the same limited period, they also allegedly fraudulently collected overdue fees, resulting in an unjustified loss of Rs 6. Rs million to the civic body,” the RIR said.
The firm is also investigating that the profits were shared with politically influential Americans.
In July this year, ED conducted investigations into various issues, such as irregularities within BMC Covid-19, including oxygen plant fraud. The company raided 10 locations in Mumbai, Uttar Pradesh, Rajasthan and Haryana.
Chheda is also under scrutiny for allegedly offering sub-popular curtains that do not conform to popular quality and requirements, and despite this, his files have been processed through the municipal government and he has been paid exorbitantly, the source added.
Chheda’s call also impacted the investigation of Suraj Chavan, a close aide to Shiv Sena MP Aaditya Thackeray.
The EOW will also check whether monetary irregularities are related to any political leader or their leaders, an EOW official said.
Soon, the ED could also sign off on a money laundering case in this case and release an investigation, the resources suggested.