Mumbai: ED registers money laundering case in oxygen plant scam


PTI, Dec 2, 2023, 1:44 PM IST

Image for representation(PTI)

Mumbai: The Enforcement Directorate (ED) has registered a case of money laundering concerning the alleged fraud in setting up oxygen plants in hospitals during the COVID-19 pandemic, police said on Saturday.
The police’s economic offences wing (EOW) had on November 24 arrested contractor Romil Chheda of M/s Highway Construction Company for allegedly causing the Brihanmumbai Municipal Corporation (BMC) a loss of Rs 6 crore, an official said.

The ED on Friday registered a case under the Prevention of Money Laundering Act (PMLA) in connection with the fraud, he said.
Chheda was awarded a contract to set up oxygen plants in nine BMC-run hospitals and two jumbo COVID-19 centres despite allegedly not having prior experience in executing such work, he said.
According to the EOW, the fraud took place between April 2021 and January 2022 at the municipal workshop in Byculla and the oxygen plants on the premises of civic-run hospitals — V N Desai, Dr Babasaheb Ambedkar, GTB, Kasturba, BYL Nair, R N Cooper, K B Bhabha, KEM and ATMG Sion.

A preliminary probe has revealed that the concerned civic officials had overlooked the eligibility rules while awarding the contract, and the oxygen plants were not set up within the stipulated timeline, causing a loss of Rs 6 crore to the BMC, the official said.
As per the contract, the work had to be completed in 30 days or the contractor had to be fined 1 per cent of the contract amount for every week of delay, he said.
While Chheda was fined Rs 3.16 crore for the delays, investigations revealed that the civic officials should have collected another Rs 6 crore as a penalty from him, the official said.
The EOW has registered a case against Chheda and some BMC officials under the Indian Penal Code sections 418, 465, 467, 468, 471, 218, 120 (B) and 34 for cheating, forgery, causing wrongful loss, framing incorrect record to save someone from punishment and other offences.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Women centric schemes game-changer for Maharashtra, Jharkhand?

AR Rahman sends notice to ‘slanderers’ over speculations surrounding separation with Saira Banu

No anti-government sentiment in Kerala, claims CM Vijayan

Jaiswal’s Perth Simulation: 200 overs in 2 days, inclined concrete slab, lighter synthetic balls

PCB says no meeting with ICC, BCCI officials on November 26 to resolve CT imbroglio

Australia coach McDonald surprised about behaviour of wicket on Day two

Sharad Pawar: Assembly poll rout raises question of existence for patriarch’s political legacy

Related Articles More

Women centric schemes game-changer for Maharashtra, Jharkhand?

No anti-government sentiment in Kerala, claims CM Vijayan

Maharashtra poll results unexpected, incomprehensible: Uddhav Thackeray

Delhi Police constable stabbed to death in Govindpuri, one held

BJP snatches one Lok Sabha seat from Congress; Maharashtra win boosts Rajya Sabha majority prospects

MUST WATCH

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation


Latest Additions

Women centric schemes game-changer for Maharashtra, Jharkhand?

AR Rahman sends notice to ‘slanderers’ over speculations surrounding separation with Saira Banu

No anti-government sentiment in Kerala, claims CM Vijayan

Jaiswal’s Perth Simulation: 200 overs in 2 days, inclined concrete slab, lighter synthetic balls

Maharashtra poll results unexpected, incomprehensible: Uddhav Thackeray

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.