Two days after registering an FIR in relation to fraud in contracts similar to the installation of Covid-19 oxygen plants and causing a loss of Rs 6 crore to the civic framework through fraudulent means, the Economic Crimes Wing (EOW) of the Mumbai Police was arrested. on Friday. Romin Chheda, Ghatkopar-based contractor, M/s Highway Construction Company.
In addition to Chheda, unknown BMC officials are also charged in the case. Chheda was interrogated for 8 hours on Thursday and summoned again for questioning on Friday. When he did not cooperate with the investigation, he was arrested. A senior EOW officer showed the progress to The Indian Express.
Chheda was arrested under sections 418, 465, 467, 468, 471, 218, 120 (b) and 34 of the Indian Penal Code. EOW officials would hand him over to the court on Saturday and seek custody for custodial interrogation.
Chheda, who runs fabric shops, had already been raided by ED in July this year in connection with alleged irregularities in the oxygen plant’s contracts, while investigating other matters.
He is a legal representative of Highway Construction Company, which was also sanctioned for the Byculla Zoo Penguin Enclosure scam, the resources said.
According to the EOW’s FIR, the alleged violations similar to the oxygen plants were committed between April 2021 and January 2022 at the Byculla-Est municipal workshop and at the oxygen production plants at the premises of nine BMC – VN Desai Hospital hospitals. Dr. Babasaheb Ambedkar Hospital, GTB Hospital, Kasturba Hospital, BYL Nair Hospital, R N Cooper Hospital, KB Bhabha Hospital, KEM Hospital and ATMG Sion Hospital.
According to the police report, in the initial investigation it was discovered that the corresponding officials of the BMC, who were attending to the works of contracts 1 and 2 (contracts for the structure of an oxygen generation plant at the Municipal Hospital and the Jumbo Covid Center), ignored the eligibility rules when awarding contracts.
On behalf of Highway Construction Company, Unissi India Pvt. , the original manufacturer, failed to meet the quality eligibility criteria. Despite this, the contract was awarded to Highway Construction Company. The defendant, Romin Chheda, who had legal standing for the Highway Construction Company, allegedly colluded with other defendants to commit the alleged crime.
“Although the structure of the oxygen plant was not completed within the timeframe set out in the contract, it has been proven that the plant paints were finished in August 2021. Also, fake ‘take over’ and ‘take over’ reports were made, and in the same limited period, they allegedly also fraudulently collected overdue fees, thus causing an unjustified loss of Rs 6 crore to the civic body,” the RIR said.
The paintings had to be finished within 30 days, or the contractor would be fined 1 cent of the contract amount for each week of delay. He was even fined Rs 3. 16 crore for the same, but an investigation found that municipal officials have collected another Rs 6 crore as a fine from the contractor, an EOW official said.