Purchase of body bags at ‘inflated’ rate: EOW books ex-mayor, two civic officials in BMC Covid scam probe

Besides Pednekar, two BMC officials — a former additional municipal commissioner (Projects) and a former deputy municipal commissioner of central purchase department (CPD), private contractor Vedanta Innotech PVT and other unknown government officials were also booked.

The amount involved in the alleged fraud has been mentioned at around Rs 49.63 lakh for now which may increase during the course of the investigation, a senior EOW official told The Sunday Express.

When contacted Pednekar said that she does not know why she has been booked and will comment on the matter only after going through the content of the FIR filed against her.

The private company, which is under scanner, had allegedly supplied body bags for deceased Covid-19 patients to the Brihanmumbai Municipal Corporation at Rs 6,719 a piece, which was over three times (Rs 1,500 per piece) of what it had charged other private hospitals or government authorities during the same period, an earlier inquiry has reportedly revealed.

Pednekar and other senior civic officials have been booked under Sections 409 (criminal breach of trust by a public servant or by a banker, merchant, or agent), 420 (cheating), and 120B (criminal conspiracy). A case has been registered at the Agripada police station and the case has been transferred to the EOW for further investigation.

EOW official API Arjun Padwale is the complainant in the case which was registered on the basis of July 18 complaint submitted by former BJP MP Kirit Somaiya over the alleged irregularities in BMC in the spendings made during the pandemic.

The case

API Arjun Padwale, the complainant, has stated in the FIR that after conducting detailed inquiry it was revealed that on April 8, 2020, central purchase department (CPD), BMC had floated Expression of Interest (EOI-1) to purchase 1,000 body-bags for deceased Covid patients.

After scrutiny of documents and testing of sample body bags, M/s Vedanta Innotech Pvt Ltd (VIPL) was found to be the eligible vendor.

On April 16, 2020, the BMC awarded purchase order to VIPL for supply of 1,000 body bag at the rate Rs 6,719 per bag. Accordingly, VIPL had supplied 1,000 body bags to BMC.

Following this, on April 14, 2020, CPD, BMC had floated Expression of Interest-2 for further supply of body bags. Again, VIPL was the sole eligible vendor in the scrutiny.The BMC hence decided to invite fresh EOI.

On April 29, 2020, BMC had floated EOI-3, During which two vendors were qualified: Care One Solutions and Vedant Innotech Pvt Ltd. On May 11, 2020, the first testing of the samples was conducted as two vendors were found eligible.Accordingly, Care One Solutions offered to supply body bags at Rs 2,583 per bag.

In the meantime, the then mayor of BMC, Kishori Pednekar called Haridas Rathod (holding additional charge of Deputy Dean, CPD, BMC ) at her bungalow at Ranibagh, Byculla and instructed to give work to VIPL, the FIR stated. Rathod told this to the then DMC, CPD. However, inquiry has revealed that Rathod proposed the purchase order to be issued in favour of Care One Solutions and on May 15, 2020, the purchase order was issued to Care One Solutions for supply of 1,000 body bags.

The first lot of 200 body bags which was sought to be handed over at Andheri Sports Complex, was refused to be accepted by the BMC for no valid reasons.

At the same time, due to the alleged illegal directions of the then additional municipal commissioner (projects) (AMC-P), and the then DMC, CPD, the samples submitted at the time of EOI were re-tested and declared unfit on May 18, 2020, the FIR stated. However, the purchase order was cancelled by BMC on May 15, 2020 itself, even before the results of the retesting were obtained, the EOW probe has revealed.

Thereafter, till June, 2020 alternate supplier of body bags was not finalized due to various reasons. BMC continued to purchase body bags from VIPL at the rate of Rs 6,719 per bag. Between May 16, 2020 and June 7, 2023, BMC purchased a total 1,200 body bags in four tranches and paid Rs 80,62,800 to VIPL.

“It is pertinent to note that prior to May 15, 2020, Care One Solutions had supplied about 100 body bags to other BMC run hospitals at the rate of Rs 2,925 per bag, which is far cheaper than the rate at which these bags were procured from VIPL later,” the complainant EOW officer stated.

First FIR in seven PEs

This is the first FIR lodged by the EOW in its ongoing seven preliminary inquiries probing irregularities in the BMC during the pandemic.

The EOW last month initiated four independent PEs to probe into alleged financial irregularities linked to the purchase of body bags and remdesivir injections at inflated rates, setting up of oxygen plants and various other contracts awarded by the BMC to various contractors and suppliers during the pandemic.

The Special Investigation Team (SIT), which is already probing three separate PEs pertaining to various irregularities in the BMC’s functioning in the past few years based on the findings of the CAG’s audit report, will be investigating the latest FIR.

The EOW may soon file FIRs in the other PEs as well, police sources said. The Enforcement Directorate had also stumbled upon the alleged financial irregularities while probing the Covid jumbo centre scam. Now that the EOW has registered an FIR in one case, the ED may soon lodge a fresh PMLA case based on this predicate offence (FIR) and probe the money laundering aspects of the body bag scam.