Education Ministry files money laundering case to probe alleged Delhi Jal Board scam; conducts searches

New Delhi: The Enforcement Directorate on Friday said it has seized Rs 41 lakh in cash, “incriminating” documents and digital devices during searches conducted in connection with a money laundering case linked to alleged corruption in augmentation of some sewage treatment plants by the Delhi Jal Board (DJB).

The raids were launched on July 3 and covered multiple locations in Delhi, Ahmedabad, Mumbai and Hyderabad, the probe agency said in a statement.

The money laundering probe stems from an FIR by the Delhi government's anti-corruption branch (ACB) against a company named Euroteck Environmental Pvt Ltd. and others alleging a scam in the DJB in the name of augmentation and modernisation of 10 sewage treatment plants (STPs) at Pappankala, Nilothi (Package 1), Najafgarh, Keshopur (Package 2), Coronation Pillar, Narela, Rohini (Package 3) and Kondli (Package 4).

These four tenders, worth Rs 1,943 crore, were awarded to various joint venture (JV) entities in October 2022.

According to the ED, the FIR registered by the ACB alleges that only three JV companies participated in the four tenders.

“While two JVs got one bid each, one JV got two bids. All three JVs participated in all four STP tenders mutually to ensure that each got the bid,” the ED said.

The FIR alleges that the bidding conditions were made “restrictive”, including the adoption of IFAS technology to ensure that a few selected entities could participate in the four tenders, it said.

“The cost estimates initially prepared were Rs 1,546 crore but were revised during the bidding process to Rs 1,943 crore.

“It is further alleged that the contracts were awarded to the three joint ventures at inflated rates, resulting in substantial loss to the exchequer,” the central agency said.

The ED said its investigation revealed that four STP-related tenders worth Rs 1,943 crore were awarded by the DJB to three joint ventures.

In the four tenders, two joint ventures (out of three municipalities) participated in each tender and all three joint ventures won the tenders, the agency said. “The costs adopted by DJB for the upgrade and augmentation were the same, although the cost of the upgrade was lower than the cost of the augmentation.

“All three joint ventures submitted the same experience certificate issued by a Taiwanese project to DJB for the tenders and it was accepted without any verification,” he said. The three joint ventures “subcontracted” the work related to the four tenders to Euroteck Environment Pvt. Ltd., Hyderabad.

Verification of tender documents shows that the initial cost of the four tenders was around Rs 1,546 crore, which was revised to Rs 1,943 crore without following due process/project reports, the ED said.

“Cash worth Rs 41 lakhs, various incriminating documents and digital evidence were seized during the searches,” he said.