Two Chennai-based private companies have come under the scanner of the Enforcement Directorate (ED) on charges of not depositing ₹14.41 crore, which they collected as water-charges from public through their multiple kiosks, to Delhi Jal Board (DJB).

The ED officially stated on Tuesday that its investigation was initiated on the basis of an FIR registered by Anti-Corruption Branch of the Delhi government, alleging that the DJB awarded a tender for setting up automotive bill payment collection machines (kiosks) at different locations in the DJB offices as decided by the the Board, for facilitating consumers in bill payment.

“The tender was awarded to Corporation Bank in the year 2012, which was further sub-contracted to Chennai-based private companies namely Freshpay IT Solutions Pvt. Ltd and Aurrum E-payments Pvt. Ltd. These companies had violated norms as prescribed in the agreement by not depositing the cash payment collections in bank account of DJB, within the prescribed time period,” the ED alleged.

The contract was initially awarded for three years which was extended by the DJB from time to time till FY19-20, overlooking allegedly continued delay and non-transfer of bill payment amount collected for DJB.

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“Investigation revealed that during demonetisation period, cash collections amounting to ₹10.40 crore was not deposited or transferred to DJB and funds collected in year 2019 were reconciled with bill payments of demonetisation period after gap of more than 300 days,” the agency charged.

The ED probe further allegedly revealed that “total principal loss incurred to Delhi Jal Board during the whole period of the tender is ₹14.41 crore which is still outstanding with private entities namely Freshpay IT Solutions Pvt Ltd and Aurrum E-payments Pvt Ltd and its Director, Rajenderan K. Nair”.

The sleuth conducted searches in this and another case of irregularities in the DJB tendering process under provisions of PMLA, 2002, at 16 premises in Delhi-National Capital Region, Chennai and Kerala, on officials of DJB, National Buildings Construction Corporation (NBCC) and private entities.

Flow meter Contract Irregularities

In the second case, the ED is probing accusation that DJB officials gave undue advantage to NKG Infrastructure Limited while awarding tender to the company for supply, installation, testing and commissioning of electromagnetic flow meters in connivance with NBCC (lndia) Limited employees.

The ED took the FIR registered by the CBI, to began its investigation into the DJB scam. “NKG Infrastructure Limited managed to secure false performance certificates issued by DK Mittal, the then General Manager, NBCC (India) Limited and fabricated deviation statement issued by Sadhan Kumar, the then Project Executive, NBCC (lndia) Limited for qualifying for technical bid of above said tender in the year 2017,” the agency charged.

During the tender process, NKG allegedly entered into conspiracy with the then Chief Engineer, Jagdish Kumar Arora, and subordinate officers of DJB for qualifying and bagging tender worth ₹38 crore. During the course of search proceedings, various incriminating documents and digital devices were recovered and seized from the premises of officials of DJB, NBCC (India) Ltd and Directors of private entities involved in the cases.

Details of various undeclared properties in the name of Jagdish Kumar Arora were also recovered by the ED.

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