/financial-express-hindi/media/media_files/vCn3QCa1WZ1IW5VPyIaf.jpg "ED raids in a case related to Delhi Jal Board, Rs 41 lakh seized, case registered in alleged STP scam")
ED conducts searches in DJB STP ‘scam’ : The Enforcement Directorate (ED) has conducted raids in several cities in connection with the alleged sewage treatment plant (STP) scam involving the Delhi Jal Board (DJB). The ED said on Friday that it has taken action in several cities as part of the money laundering case related to alleged corruption in the expansion of the Delhi Jal Board’s STP. According to the ED, during this raid, which started on July 3, searches were conducted at several places in Delhi, Ahmedabad, Mumbai and Hyderabad. The ED has claimed that during this search operation, Rs 41 lakh in cash, several “criminal” documents and digital devices have been seized. The ED has also registered a money laundering case in this matter.
Allegations of scam in tender related to STP upgradation
This money laundering case started with an FIR by the Anti-Corruption Branch (ACB) of the Delhi government against a company called Eurotech Environmental Private Limited and others. The ACB FIR alleges a scam in the DJB in the name of augmentation and upgradation of 10 sewage treatment plants (STPs) in Pappankala, Nilothi, Najafgarh, Keshopur, Coronation Pillar, Narela, Rohini and Kondli. These four tenders worth Rs 1,943 crore were given to various joint ventures (JVs) in October 2022.
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Suspicion of collusion in distribution of contracts: ED
According to the ED, the FIR filed by the ACB alleged that only three JV companies participated in the four tenders. According to the ED, “Two joint ventures got one tender each, while one joint venture got two tenders. The three joint ventures participated in all the four STP tenders with mutual consent to ensure that each of them would get the tender.” The FIR also alleged that the tendering conditions were made “restrictive”, including the adoption of IFAS technology. This was done so that only a few selected entities could participate in all the four bids.
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Loss to government exchequer due to cost overrun: ED
According to the ED, the estimated cost of these tenders was initially Rs 1,546 crore, but it was increased to Rs 1,943 crore during the tendering process itself. “It is also alleged that the three joint ventures were awarded contracts at inflated rates, causing huge losses to the exchequer.” According to the ED, its investigation has revealed that in all the four tenders worth Rs 1,943 crore related to STP awarded by DJB to three joint ventures, two joint ventures participated in each tender and all the three joint ventures won the tenders.
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Questions on experience certificates of all three companies
“The cost adopted by DJB for upgradation and augmentation was the same, although the cost of upgradation is less than the cost of augmentation,” the ED says. “All the 3 joint ventures submitted the same experience certificate issued from a Taiwanese project to DJB to secure the tender and it was accepted without any verification.”
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All sub-contracts given to the same company
The three joint ventures sub-contracted the work related to all the four tenders to Hyderabad-based company Euroteck Environment Pvt. Ltd. According to the ED, verification of the tender documents shows that the initial cost of the four tenders was around Rs 1,546 crore, which was increased to Rs 1,943 crore without following the correct procedure or project report.
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