MEGA Scam: Sanjay Gupta sent to four-day police remandhttps://indianexpress.com/article/cities/ahmedabad/mega-scam-sanjay-gupta-sent-to-four-day-police-remand/

MEGA Scam: Sanjay Gupta sent to four-day police remand

Gupta was arrested by a day before and was brought before court by CID officials seeking a 14-day custody.

Former IAS officer, Sanjay Gupta (in suit), who has been arrested in connection with the alleged irregularities of Rs 113 crores in the Ahmedabad-Gandhinagar Metro Rail project by Gujarat CID (Crime), was produced in the court in Ahmedabad, on Friday. Gupta was executive chairman of Metro-link Express for Gandhinagar and Ahmedabad (MEGA) Company Ltd which is executing the project. (Express photo by Javed Raja)
Former IAS officer, Sanjay Gupta (in suit), who has been arrested in connection with the alleged irregularities of Rs 113 crores in the Ahmedabad-Gandhinagar Metro Rail project by Gujarat CID (Crime), was produced in the court in Ahmedabad, on Friday.

A special anti-corruption court on Friday sent former IAS officer Sanjay Gupta to four days police custody in the alleged Rs 113 crore Ahmedabad metro rail scam. Gupta was arrested by the state CID (crime) a day before and was brought before the court by the CID officials seeking a 14-day custody.

The special public prosecutor Sudhir Gupta argued that the scam involves the “dream project” of the government and the prosecution needs to interrogate Gupta about where the money has gone. He said that there are other angles in the alleged scam which needs to be investigated and therefore Gupta’s custodial interrogation is required.

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The remand application alleges that Gupta, former chairman of the Metro-Link Express for Gandhinagar and Ahmedabad Company Ltd (MEGA) along with a co-accused Radhesh Bhatt, a former senior manager, took Rs 50 crore as commission from the suppliers. The percentage of commission was as high as 30%.

The application also alleges that Gupta floated bogus companies and appointed several people as their directors who were actually staffers of his company Neesa Group. The application alleges that money for the MEGA project was given to these bogus companies through cheques. It says the investigation revealed that Rs 11 crore was paid to such companies.

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The remand application says that in 2012 for filling land at Bhat Koteshwar-Motera for the construction of casting yard and a deport, there was a need to level the land before construction. In this work more than 20 lakh cubic metre was filled and a payment Rs147 crore was paid. When the government checked the work it was found that a mere 9.42 lakh cubic metre filling had been done. The remaining over 11 lakh cubic metre, whose filling cost is estimated to be around Rs 113 crore, has no record.

Project work on right track, says MEGA MD

Despite being rocked by a Rs 113 crore scam, the Ahmedabad Metrorail project is expected to progress smoothly said IP Gautam, the manging director of MEGA, a special purpose vehicle that is implementing the project, on Friday.

“There will be no setback to the metro rail project. This (the scam) belongs to the year 2013, and now we are in 2015. The entire character of the project has changed, the management has changed,” said Gautam when asked if there will be any financial or other implications that will adversely affect the project that has remained on paper for almost a decade.

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