The Bombay High Court has granted bail to Shiv Sena (UBT) leader Suraj Chavan in a money laundering case linked to a khichdi distribution scam during the COVID-19 pandemic
Suraj Chavan. Pic/Satej Shinde
In a major setback to the Enforcement Directorate (ED), the Bombay High Court has granted bail to Suraj Chavan, a close aide of Aaditya Thackeray, who was arrested last year in connection with the COVID-19 Khichdi scam. The ED had arrested Chavan for his alleged involvement in a money laundering case linked to irregularities in the distribution of food packets during the pandemic. He had spent one year and 18 days in custody before the High Court granted him bail on Wednesday.
ADVERTISEMENT
While granting relief, the court observed that there was no official material on record to support the allegations against the vendor involved in the case. The order stated: “If at all it is the prosecution case that there is any illegal act on the part of the Vendor, i.e., M/s. Force One Multi Services, to provide under-weighing food packets, prima facie, there is no material placed on record through any official document of the MCGM to substantiate this allegation, which is clearly evident from the charge sheet.”
The decision is seen as a blow to the ED, which has been probing the financial aspects of the alleged scam. Another key allegation was that Force One Multi Services did not have its own kitchen setup. However, the Bombay High Court noted: “It is seen that there is no impediment or provision requiring M/s. Force One Multi Services to have its own kitchen setup as per the terms of the work order, which has been brought to my notice prima facie, since that is one of the principal allegations in the prosecution complaint.”
The court has further observed that all that the chargesheet encloses are statements of the accused which is the sole basis for the allegation and indictment of M/s. Force One Multi Services so as came to the conclusion that it received illegal proceeds under the Works Order and routed the same to the Applicant (Suraj Chavan). “Veracity of Applicant's (Chavan) case on the basis of his letters to have received Rs. 1.35 crores in his bank account from M/s. Force One Multi Services once again will be a matter of trial,“ the court order reads.
After hearing the both defender and the prosecution, the court has also observed that Chavan has fully cooperated with the investigation and has made all the disclosures before the investigating agency and the charge sheet was filed on 15th March 2024.
The court has noted that, similar identical 32 Work orders were issued by the MCGM during the first wave of the Covid-19 pandemic period to various Vendors / Contractors in each ward for supply of similar food packets during the Covid-19 pandemic lockdown as per requirement during the morning and evening time to deliver lunch and dinner at various Ward Offices of the Municipal Corporation for distribution. It is seen that similar Work orders were given to various Vendors.
The court further noted that it is seen that Vaishnavi Kitchen - Bala Kadam and Force One Multi Services have been issued one Work order each. Material has been placed before me to show the application made by them in the prescribed format giving all such details appended thereto along with licenses issued by the Food and Drug Administration, Maharashtra State and the Health Department of the Municipal Corporation.
The court observed that the Licenses appended are all valid licenses issued in the name of M/s. Sneha Caterers and Decorators and M/s. Golden Star Banquet Hall & Catering Services with whom M/s. Force One Multi Services has a sub-contract and leave and license agreement details which are reflected in the Chargesheet. It is seen that there is no impediment or provision of M/s. Force One Multi Services to have its own kitchen setup as per the terms of the Work order which has been brought to my notice prima facie since that is one of the principal allegations in the prosecution complaint.
The court has also gone through the minutes of the BMC standing committee meeting on 7/04/2020 sanctioning and approving the issuance and completion of work orders. “After the contract and the Work orders were completed, MCGM has issued sanction and approval for completion of the Work orders not only in respect of the Work order given to M/s. Force One Multi Services but to all other 32 entities in Mumbai City,” the court further noted.
“There is material placed on record to show that M/s. Force One Multi Services also continued to be a Vendor in the second wave of the Covid-19 pandemic for the supply of similar food packets during that time through the MCGM and nothing incongruous was found by the MCGM nor is there any indictment for the same. If at all it is the prosecution case that there is any illegal act on the part of the Vendor i.e. M/s. Force One Multi Services to provide under weighing food packets, prima facie, there is no material placed on record through any official document of the MCGM to substantiate this allegation which is clearly evident from the Chargesheet,” the court order reads.
While granting bail the court has also said, ” It is clarified that observations made in this order are limited for the purpose of granting Bail only and they are not to be construed as an expression of opinion by the Court on the merits of the case in any manner so as to influence the trial.”
In September 2023, the EOW initiated an FIR against six individuals for alleged misappropriation of Rs 6.37 crore and financial irregularities related to BMC's contract for distributing khichdi to migrant workers during the pandemic. The FIR, registered at the Agripada police station, names Sujit Patkar, Sunil alias Bala Kadam; Rajeev Salunkhe of Sahyadri Refreshments; employees of Force One Multi Services; Sneha Caterer’s partners; and an assistant municipal commissioner (planning), along with other unidentified BMC officials.
According to the FIR, the contract was intended for a company equipped with the necessary kitchens and certifications from health and related departments to prepare khichdi for 5,000 people daily. However, the contracts were awarded to Sahyadri Refreshments and Vaishnavi Kitchen, neither of which possessed these requirements, and they subsequently subcontracted the work. Similarly, Force One lacked the necessary kitchen facilities and subcontracted the production of khichdi. The FIR also suggests that, as per the contract, each packet of khichdi was supposed to weigh 300 grams, but the accused parties provided packets weighing only 100-200 grams to migrant workers.
Aaditya Thackeray shared a statement on his Instagram page after Chavan was granted bail.
"The fear of the central agencies, made many traitors run away and hop over to the washing machine party. Some were on the run and found refuge in joining hands with those who troubled them. The traitors backstabbed Uddhav ji who gave them everything- party posts, ministries, recognition and respect. They shamelessly stole our party's name, and logo and still try to break more people. Their slavery is only due to their corrupt character and ill-gotten gains. The dirtiest politicians we've ever seen, won't think twice about betraying their families too. And then on the other hand you have people like @surajsc21! Faced the brutality of an unjust system, a politically motivated central agency, and multiple offers from the washing machine. But he didn't bend. Always a brother," he said in the post.
