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Home > Mumbai > Mumbai News > Article > Mumbai Ex mayor civic officials pulled off scam worth Rs 4963 lakh says EOWs FIR

Mumbai: Ex-mayor, civic officials pulled off scam worth Rs 49.63 lakh, says EOW’s FIR

Updated on: 11 August,2023 07:15 AM IST  |  Mumbai
Faizan Khan | faizan.khan@mid-day.com

ED likely to initiate fresh money-laundering case in COVID jumbo centre scam

Mumbai: Ex-mayor, civic officials pulled off scam worth Rs 49.63 lakh, says EOW’s FIR

Former Mayor Kishori Pednekar at a Shiv Sena meeting in June 2022. File pic

The Enforcement Directorate (ED) has obtained details and documents from the Mumbai Police’s Economic Offences Wing (EOW) regarding alleged corruption involving Shiv Sena (UBT) member and former mayor Kishori Pednekar as well as senior civic officials in connection with the purchase of body bags meant for COVID victims.


It is likely that the ED will initiate a fresh money-laundering case related to the COVID-19 jumbo centre scam. Last week, the EOW booked Pednekar and senior BMC officials under various sections of the Indian Penal Code, including cheating, criminal conspiracy and breach of trust by government officials, for purchasing body bags at inflated rates from Vendanta Innotech Pvt Ltd (VIPL).


The FIR states that BMC officials purchased 1,200 body bags since 2020 costing around Rs 80 lakh. The 'fraud', amounting to approximately R49.63 lakh, was allegedly committed by the officials under the instructions of the former mayor. Officials suspect that there might have been significant kickbacks involved from Vendanta as regular BMC hospitals procured the body bags at a lower cost. The case was filed based on a complaint from former BJP MP Kirit Somaiya, with EOW officer API Arjun Padwale serving as the complainant.


According to the FIR, the case was registered based on a comprehensive preliminary enquiry (PE) conducted by the EOW. During this investigation, the EOW discovered that in April 2020, the BMC had initiated an expression of interest (EOI-1) to procure 1,000 body bags for deceased COVID-19 patients. After reviewing documents and testing a sample body bag, VIPL was identified as the qualified vendor, and the BMC subsequently awarded it the purchase order for 1,000 body bags at the rate of R6,719 per bag. VIPL successfully delivered the bags to the civic body.

Subsequently, the BMC issued another Expression of Interest (EOI-2) for additional body bag supply, and once again, VIPL emerged as the sole eligible vendor. However, BMC decided to open a fresh tender process for EOI-3. Two bidders qualified: Care One Solutions, which initially quoted Rs 2,610 per bag and later settled for Rs 2,583, and VIPL, which initially quoted R3,939 and eventually settled for R2,610. BMC officials then conducted sample testing in accordance with standard operating procedures, confirming the eligibility of both vendors.

The FIR further states that Care One Solutions was identified as L-1. During this period, Pednekar allegedly summoned Haridas Rathod, who held additional charge of deputy dean of the BMC's central purchase department (CPD) to her residence at Rani Bagh, Byculla, instructing him verbally to award the work to VIPL. Rathod then went to the then-DMC, CPD, claiming that Pednekar suggested issuing the purchase order in favour of L-1 [Care One Solutions]. Consequently, on May 15, 2020, the purchase order for 1,000 body bags was issued to L-1.

An initial batch of 200 body bags, intended to be delivered to Andheri Sports Complex, was allegedly refused by the BMC without valid reasons. Simultaneously, due to the unlawful directives of the then-additional municipal commissioner (Projects) (AMC-P) and the then-DMC, CPD, according to the FIR, the samples submitted during the EOI process were retested and declared unfit on May 18, 2020.

The FIR further states that, until June 2020, an alternative supplier for body bags had not been finalised due to various reasons. The BMC continued to procure body bags from VIPL at the rate of Rs 6,719 per bag. Between May 16, 2020, and June 7, 2023, the civic body purchased a total of 1,200 body bags in four instalments, amounting to a payment of Rs 80,62,800 to VIPL, according to the FIR. Before May 15, 2020, Care One Solutions had supplied approximately 100 body bags to other BMC-operated hospitals at a significantly lower rate of Rs 2,925 per bag.

The alleged jumbo COVID scam, which is being probed by the ED, is estimated to be worth R4,000 crore. Sujit Patkar, a close associate of Sanjay Raut, and BMC doctor Kishore Bisure have been arrested in connection with it.

Rs 4,000 cr
Worth of jumbo centre ‘scam’

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