November 23rd 2023.
The Mumbai Police's Economic Offences Wing (EOW) has taken action against a contractor and unidentified officials of the Brihanmumbai Municipal Corporation (BMC) for their involvement in the fraud related to the contracts of the oxygen plant.
The EOW registered a First Information Report (FIR) on Wednesday in connection with the scam, involving a loss of Rs 60,000,000.00 to the civic body. This is the fifth FIR filed by the EOW in relation to various irregularities that occurred during the COVID-induced pandemic. The previous four FIRs were related to frauds in Covid jumbo centre-Lifeline Hospitality Services, Khichdi scam, Body Bag Scam and Remdesevir injections scam.
The General Cheating-1 branch of the EOW registered the case against Ghatkopar-based contractor Romil Chheda for Highway Construction Company and concerned officials of BMC. They are booked under sections 418, 465, 467, 468, 471, 218, 120, and 34 of the Indian Penal Code. The ED may also register a money laundering case in the matter and launch an investigation.
The EOW's FIR states that the alleged offences of Oxygen plants were committed between April 2021 and January 2022 at the Municipal Workshop in Byculla-East and at the site of the oxygen generation plant on the premises of nine respective hospitals of BMC. It was found that the concerned BMC officials overlooked the eligibility rules while awarding contracts.
Unissi India Pvt., the original manufacturer, did not fulfil the quality eligibility criteria, but despite this, contracts were awarded to the Highway Construction Company in an unruly manner. Aslam Sheikh, the Guardian Minister at that time, had raised objections regarding the irregularities and the awarding of the contract to a blacklisted construction company. He also questioned the legitimacy of certain bills and called for an inquiry into the alleged bogus billing.
Romil Chheda, who had the power of attorney for Highway Construction Company, allegedly connived with other accused for the said offence. He also fraudulently charged a late fee for the limited period, thus causing a wrongful loss of Rs 6 crore to the BMC. The agency is also investigating if profits were shared with individuals with political influence.
The ED had earlier carried out searches in various matters pertaining to irregularities in BMC during COVID-19, including the oxygen plant fraud. The agency had raided 10 places in Mumbai, Uttar Pradesh, Rajasthan, and Haryana. Chheda is also under scanner for allegedly providing substandard equipment that does not match the standard quality and requirements, and despite this, his files were processed by civic officials, and he was paid exorbitantly. His name has also cropped up in the investigation related to Suraj Chavan, a close aide of Shiv Sena MLA Aditya Thackeray.
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