AAP’s Satyendar Jain, DJB ex-CEO Udit Rai among 6 arrested in Delhi STP fraud case

An FIR, said officials, was registered in the case on May 11, 2024, at the ACB police station under provisions of the Prevention of Corruption Act and the Indian Penal Code.

Apart from Jain and Rai, other arrested accused have been identified as DJB’s former contractual consultant Ankit Srivastava, Nagendra Yadav, proprietor of M/s AN Enterprises; Raja Kumar Kurra, owner of M/s Euroteck Environment Pvt. Ltd., and Pankaj Verma, proprietor of M/s Srijanhar. The firms have been linked to alleged manipulation of tenders.

In 2025, the Enforcement Directorate (ED), which is also probing the case, had filed a chargesheet against Jain and 13 others. The Rs 17.7-crore fraud involved the award of four tenders linked to the STPs, the central agency had said.

After examining the evidence gathered during the probe, the Delhi government’s ACB on Tuesday said that all six accused were questioned before being arrested.

Political war of words ensues

Following Jain’s arrest, a political war of words broke out between the AAP and the BJP. Jain was earlier arrested in 2022 in another money laundering case filed by the ED and later released on bail in 2024.

Lashing out at the BJP, AAP chief and former Delhi Chief Minister Arvind Kejriwal wrote on X, “Satyendar Jain ji has once again been arrested at the behest of the BJP. Just a short while ago, everyone still remembers the ordeal they put him through by throwing him in jail. The previous case was fabricated too, and this case will also be proven to be fake.”

On the other hand, Union Minister and Delhi BJP chief Harsh Malhotra in an official statement was quoted as saying, “The STP scam and the arrests made in connection with it have made it clear even a single STP was not installed on any drain during the 10-year rule of the Kejriwal government and why the Yamuna became even more polluted over those ten years.”

He added, “Arvind Kejriwal should come forward and accept the crimes committed by his government. The law may take some time, but Satyendar Jain will certainly be punished .”

What are the allegations

The probe, according to the ACB, revealed that a proposed pilot study for the upgradation work was not conducted while restrictive conditions, including those concerning the technology, were allegedly incorporated into the tender.

Investigators have alleged that the tender process contained conditions that favoured the technology provider, M/s Euroteck Environment Pvt. Ltd.., limiting competition and allegedly extending undue advantage to the private entity.

The ACB said its investigation also uncovered alleged communications between public servants and proprietors pointing towards a nexus aimed at influencing the tender conditions in favour of the particular technology provider.

Electronic evidence allegedly showed the exchange of tender conditions, corrigendums and other project-related documents, which were subsequently incorporated into the STP tender issued by the DJB.

Officers also alleged that essential parameters concerning treated effluent were left out and that technical specifications were subsequently modified, resulting in significant financial implications for the government exchequer.

Financial trail uncovered

The financial trail has emerged as another key component of the investigation. According to the agency, commission or bribe payments were allegedly routed through intermediary entities, including M/s Srijanhar and M/s AN Enterprises.

The investigation allegedly found that substantial sums were transferred to the proprietorship concern of accused Nagendra Yadav by entities connected with the private technology provider.

The agency said subsequent transactions resulted in the transfer of funds to government officials, including former DJB CEO Udit Prakash Rai, as well as his relatives.

The ACB has also alleged that Rai received bribe payments, amounting to Rs 1.52 crore in his and his relatives’ bank accounts through M/s AN Enterprises. The agency further alleged that the money was subsequently used for purchasing immovable property.

According to the investigation, the funds routed through M/s AN Enterprises originated from M/s Euroteck, the technology provider at the centre of the alleged tender manipulation.

Investigators have also examined alleged communications between Raja Kumar Kurra, Nagendra Yadav and Ankit Srivastava concerning meetings, tender conditions, corrigendums and other matters related to the STP project. The ACB said the material collected during the investigation indicates that certain tender conditions were allegedly introduced or modified in a manner favouring Euroteck Environment Pvt. Ltd.

The agency said that further investigation is underway and that the complete money trail and alleged proceeds arising from the suspected corruption are still being examined.