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Mumbai COVID-19 jumbo centre scam: Everything you need to know about Rs 38-cr fraud
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  • Mumbai COVID-19 jumbo centre scam: Everything you need to know about Rs 38-cr fraud

Mumbai COVID-19 jumbo centre scam: Everything you need to know about Rs 38-cr fraud

FP Explainers • June 23, 2023, 21:51:59 IST
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The ED raided 15 locations including the residence of businessman Sujit Patkar – said to be a close friend of Sanjay Raut – in connection with a probe into alleged irregularities in the setting up of jumbo COVID treatment facilities in Mumbai during the pandemic

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Mumbai COVID-19 jumbo centre scam: Everything you need to know about Rs 38-cr fraud

The Enforcement Directorate has conducted more than a dozen raids across Mumbai in connection with an alleged scam of Rs 38 crore linked to COVID-19 jumbo centres. According to reports, authorities have retrieved documents relating to properties worth over Rs 100 crore, fixed deposits, investments and jewellery. But what do we know about the jumbo scam? Let’s take a closer look: What happened? The Enforcement Directorate on Thursday raided 15 places including the Mumbai civic body’s Central Purchase Department in Byculla,the residence of businessman Sujit Patkar – said to be a close friend of Shiv Sena (UBT) Rajya Sabha MP Sanjay Raut – and sites connected to Indian Administrative Service officer Sanjeev Jaiswal and Shiv Sena (UBT) functionary Suraj Chavan. This raid, carried out in connection with a money laundering case against Patkar, comes after the Mumbai Police in August registered a forgery case against Lifeline Hospital Management Services firm, Patkar, and his three partners.

As per The Hindu, that case was filed on the basis of a complaint by BJP’s Kirit Somaiya.

Somaiya in his complaint alleged that Lifeline Hospital Management Services, Patkar, and his three partners, received contracts from the BMC to manage COVID-19 centres during the pandemic – which caused a Rs 38 crore loss to the BMC. Somaiya claimed LMHS was awarded the contract despite not having any experience in the field and that it had been blacklisted by the Pune Metropolitan Region Development Authority – which it hid from the BMC. The ED registered a case to investigate the money laundering angle based on the FIR at the Azad Maidan police station in south Mumbai. According to the FIR the hospital management firm partners in June 2020 submitted an alleged fake partnership deed to the BMC and obtained contracts of jumbo COVID-19 centres at NSEL, Worli, Mulund, Dahisar (in Mumbai) and Pune without having any experience in the medical field. After verification it was found that staffers and doctors at these COVID-19 centres did not have medical certificates and allegedly failed to provide proper treatment due to which people suffered, the FIR added. An official told PTI Jaiswal had been summoned for questioning at the ED office situated at Ballard Estate, but he did not appear. Chavan and a few others whose premises were raided have been summoned on Monday and the next few days for questioning, the official added. What did they find? News18 reported that documents relating to properties valued at Rs 150 crore across Maharashtra, fixed deposits and investments worth Rs 15 crore and jewellery estimated at Rs 2.5 crore were recovered – along with mobile phones and laptops. Officials told News18 the first company was selling body bags to a second company for Rs 2,000 which in turn was giving the same body bags to the Central Procurement Department for Rs 6,800. A source told Indian Express that medicine including Remdesivir was bought at a 25 to 30 per cent premium over market price. The source added that the purchases continued to be made at the insistence of senior BMC officials despite such irregularities being pointed out. [caption id=“attachment_9343671” align=“alignnone” width=“640”] The Brihanmumbai Municipal Corporation (BMC) headquarters in Mumbai. Photograph courtesy: BMC[/caption] The investigation also showed around 60 to 65 per cent fewer doctors and medical staff worked at the Lifeline Jumbo Covid Centre than were bills made out to the BMC.

The company allegedly falsely used the names of 200 doctors to misappropriate funds.

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The ED has spoken to these doctors via email and taken their statements, as per Indian Express. The doctors have told the ED they worked for the BMC for a few weeks, but their names were used for an entire year’s worth of bills. The ED has discovered transactions and records that indicate transactions worth Rs 20 crore. News18 reported that the contract was signed by then Mayor Kishori Pednekar – who is likely to be summoned by the ED. According to Business Today, officials found an agreement between Patkar and the BMC during the raid on his home. Rs 38 crore was deposited into Patkar’s account as per the agreement, the report stated. According to Indian Express, Jaiswal has claimed he is being made a patsy. He has alleged that senior bureaucrats and civic officials were involved, but that he is being singled out. He also added that the properties under the scanner of the ED are ancestral properties. Chief Minister Eknath Shinde had earlier this week announced the setting up of an SIT, headed by Mumbai police commissioner Vivek Phansalkar, to investigate the case. BJP leader Kirit Somaiya has alleged that the scam is worth more than Rs 100 crore. The Mumbai Police’s Economic Offences Wing (EOW), however, has pegged it at Rs 38 crore. In January, BMC commissioner Iqbal Singh Chahal appeared before the ED in connection with alleged irregularities in award of contracts for the health facilities during the pandemic. Allegations fly fast and furious According to Free Press Journal, Sena spokesperson Kiran Pawaskar accused the Shiv Sena (UBT) of looting the public while citizens of Mumbai were dying during the pandemic. “For the last 24 years, they have only looted the BMC. Despite them being in power for such a long time, the city’s infrastructure continued to deteriorate. Even during Covid when people were dying and struggling to get medicines, these people were shamelessly making money over dead bodies. And today, when an inquiry is being conducted they are saying this is being done out of political vendetta. So you want to continue looting the public and no one should question you?” Pawaskar was quoted as saying by the outlet.

Pawaskar took aim at Chavan and Patkar.

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“Who is this Suraj Chavan, even when he was not eligible to pay Income Tax for so many years, how has he amassed so much wealth? Who was he collecting the money for?” Pawaskar queried. “Contracts were given to Sujit Patkar for setting up a Jumbo Covid Centre. What are his credentials? It is just that he is Sanjay Raut’s friend? Why shouldn’t such arbitrary decisions be questioned?” alleged Pawaskar. According to The Hindu, Maharashtra deputy chief Minister Devendra Fadnavis acknowledged the raids but said he was unaware about the specifics. He, however, did claim that there had been various scams at COVID-19 centres – which had been turned over to companies who did not have the relevant experience – and that people’s lives had been placed in peril. Sena UBT hits back at Shinde Raut on Friday accused Chief Minister Eknath Shinde’s family of being involved in scams at COVID-19 centres in Thane and Kalyan-Dombivali. [caption id=“attachment_12717852” align=“alignnone” width=“640”] Shiv Sena UBT leader Sanjay Raut has hit back at Ekanth Shinde[/caption] “Everybody knows who was controlling the Covid centres in Thane and Kalyan-Dombivli municipal corporations. Those sitting on ‘Varsha’ (official residence of CM) were involved in it. Family members of CM Shinde were taking 40% commission on various purchases related to Covid centres. They had withdrawn crores of rupees by submitting fake bills from suppliers. They submitted the fake bills for oxygen purchase amounting to around ₹6 crore,” Raut was quoted as saying by Hindustan Times.

Aaditya Thackeray on Thursday claimed said the Eknath Shinde government in Maharashtra was scared and fighting like cowards.

His party was fighting for democracy in the country which was leading to such retaliatory action by probe agencies of the Union and state governments, the former state minister told reporters. Action against his close aides was prompted by the ‘morcha’ (protest march) announced for 1 July by the Shiv Sena (UBT) against alleged corruption in the BMC, Thackeray claimed. “The government is very scared and they are fighting like cowards by using Central agencies. If you want to fight, we are ready to face the polls, but then they have to come to the battlefield. The country and the world are watching that democracy has been murdered in the state,” Thackeray said. He also visited Suraj Chavan during the day. But Shinde group leader Deepak Kesarkar hit back at Raut. “If Sanjay Raut has any proof of a scam, he should submit them with a complaint. TMC and KDMC set up Covid centres in record time and a company related to Raut was involved in corruption in every purchase,” Kesarkar was quoted as saying by Hindustan Times. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.

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