Thursday, July 27, 2023

Chennai based firms under ED scanner for causing loss to Delhi Jal board worth Rs 14.41 crore


CHENNAI:
Chennai-based private companies Freshpay IT Solutions Pvt. Ltd. and Aurrum E-payments are under the scanner of Enforcement directorate for causing loss to Delhi Jal Board worth Rs 14.41 crore.

Enforcement directorate took up the investigation on the basis of FIR registered by Anti-Corruption Branch, Government of National Capital Territory of Delhi (GNCTD)  alleging that Delhi Jal board awarded a tender for setting up automotive bill payment collection machines (kiosks) at different locations in different DJB offices as decided by the Delhi Jal Board, for facilitating consumers in bill payment.

The tender was awarded to Corporation Bank in the year 2012, which was further sub-contracted to Freshpay IT Solutions Pvt. Ltd. and Aurrum E-payments.

According to the Enforcement Directorate, these companies had violated norms as prescribed in the agreement by not depositing the cash payment collections in the bank account of DJB, within the prescribed time period.

The contract was initially awarded for three years which was extended by Delhi Jal Board (DJB)  from time to time till  financial yerar 2019-20 despite continued delay and non-transfer of bill payment amount collected for DJB.

Investigation revealed that during the demonetization period, cash collections amounting to Rs. 10.40 Crore  was not deposited or transferred to DJB and funds collected in the year 2019 were reconciled with bill payments of the demonetisation period after a gap of more than 300 days. It was further revealed by ED that total principal loss incurred to Delhi Jal Board during the whole period of the tender is Rs 14.41 Crore which is still outstanding with the two private entities and its Director Rajenderan K Nair.

Directorate of Enforcement is conducting searches under provisions of PMLA, 2002 at 16 premises in Delhi-NCR, Chennai and Kerala, on officials of Delhi Jal Board, NBCC Ltd and private entities in relation to violation of norms and irregularities in tendering process of DJB.  "The investigation is conducted in two separate matters of irregularities in the tendering process of DJB," ED said in a release.

In another case, ED initiated investigation on the basis of FIR registered by CBI, New Delhi alleging that officials of DJB gave undue advantage to NKG Infrastructure Limited while awarding tender to the company for supply, installation, testing and commissioning of electromagnetic flow meters in connivance with officials of NBCC (lndia) Limited. NKG Infrastructure Limited managed to secure false performance certificates issued by D K Mittal, the then General Manager, NBCC (India) Limited and fabricated deviation statement issued by Sadhan Kumar, the then Project Executive, NBCC (lndia) Limited for qualifying for technical bid of above said tender in the year 2017.

During the tender process, NKG Infrastructure Limited entered into conspiracy with the then Chief Engineer, Jagdish Kumar Arora and his subordinate officers of DJB for qualifying and bagging tender worth Rs 38 Crore, the release said.

During the course of search proceedings, various incriminating documents and digital devices were recovered and seized from the premises of officials of Delhi Jal Board , NBCC (India) Ltd. and Directors of private entities involved. Details of various undeclared properties in the name of Jagdish Kumar Arora were also recovered. Further Investigation is under progress.

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