In accordance with the provisions of the PMLA, 2002, the Directorate of Enforcement has searched 16 locations in Delhi-NCR, Chennai, and Kerala for personnel of the Delhi Jal Board (DJB), the NBCC, and private firms in relation to norm violations and irregularities in the DJB’s tendering process.
In two distinct cases of anomalies in the DJB contracting procedure, ED is conducting investigations. The ED opened an investigation based on an FIR filed by the CBI in New Delhi, which claimed that DJB officials conspired with those from NBCC (India) Limited to give NKG Infrastructure Limited an unfair advantage when awarding the contract for the supply, installation, testing, and commissioning of electromagnetic flow metres to the company. In order to qualify for the technical bid of the aforementioned tender in 2017, M/s NKG Infrastructure Limited was able to obtain fake performance certificates from D. K. Mittal, the then General Manager of NBCC (India) Limited, and fabricated deviation statements from Sadhan Kumar, the then Project Executive of NBCC (India) Limited.
In order to qualify for and win the deal valued at Rs. 38 Crore, NKG Infrastructure Limited conspired with the DJB’s then Chief Engineer, Jagdish Kumar Arora, and his junior staff.
In the second case, an investigation has been opened based on an FIR filed by the GNCTD Anti-Corruption Branch, which claims that DJB awarded a tender for the installation of automotive bill payment collection machines (kiosks) at various sites within various DJB offices, as decided by the Delhi Jal Board, in order to assist consumers in bill payment. In 2012, Corporation Bank received the contract, which was then subcontracted to two private businesses with offices in Chennai, M/s Freshpay IT Solutions Pvt. Ltd. and M/s Aurrum E-payments Pvt. Ltd.
These businesses broke the rules outlined in the contract by failing to deposit cash payment collections into DJB’s bank account within the allotted time frame. Despite ongoing delays and the non-transfer of the funds received for DJB from bill payments, the aforementioned contract, which was initially given for three years, was periodically extended by DJB until FY 2019–20.
Investigations showed that at the time of demonetization, cash receipts of Rs. 10.40 crore were not deposited or transferred to DJB, and money obtained in 2019 was reconciled with bill payments from the time of demonetization after a gap of more than 300 days. Further investigation revealed that M/s Freshpay IT Solutions Pvt. Ltd. and M/s Aurrum E-payments Pvt. Ltd., as well as its Director Rajenderan K. Nair, are responsible for the total principal loss of Rs. 14.41 Crore that Delhi Jal Board incurred during the entire period of the tender.
NBCC (India) Ltd. and the Directors of the implicated private firms’ offices were searched, and during that process, several incriminating papers and digital devices were found there and seized. Additionally, information on several unregistered properties under Jagdish Kumar Arora’s name was found. Additional investigation is being conducted.
