Covid jumbo centres scam: IAS officer Sanjeev Jaiswal appears before ED

Jaiswal was earlier summoned twice by the agency, but he could not join the probe due to some reasons.

Sources said the ED wished to record the IAS officer’s statement as he was a key BMC functionary who signed the documents pertaining to awarding of contracts for healthcare services, staff and equipment at the Covid-19 field hospitals. The agency wants to find out what criteria were followed while awarding contracts to firms linked to Sujit Patkar, a close aide of Shiv Sena (UBT) MP Sanjay Raut.

The ED had last week conducted raids on 19 premises in Mumbai and other places in connection with its investigation into the Rs 38 crore Covid jumbo centre scam. Jaiswal’s premises were also searched.

On raiding his Bandra residence, the ED seized Rs 13 lakh in cash and documents of properties and investments. The agency also identified Jaiswal’s half-acre land in Madh island and other properties. All these properties could be worth over Rs 100 crore and are under scanner over the source of money used in purchasing them. Jaiswal has been claiming that these are their family’s ancestral properties and some have been gifted by relatives.

Places belonging to other senior BMC officials, Lifeline Hospital Management Services in Sasmira Marg, Worli, as well as suppliers of oxygen concentrators and other equipment, contractors and middlemen involved in the alleged scam were also raided.

The probe is based on a case registered by the Mumbai police in August 2022 at Azad Maidan police station on a complaint by BJP leader Kirit Somaiya. In October 2022, the case was transferred to the Mumbai police’s Economic Offences Wing. Later, the ED registered a PMLA case in the matter.

The case relates to the field hospitals set up in Mumbai by the government during the Covid-19 pandemic. The BMC was looking after providing healthcare staff and other facilities on a contract basis. The BJP alleged that contracts were given at exorbitant rates to contractors linked to Shiv Sena leaders despite the fact that they did not have prior experience in healthcare services.

According to ED sources, there was gross misappropriation of funds in the overall Covid field centres contracts. Some money was utilised while the rest was siphoned off by making fake entries in the name of doctors in the records, they said.

ED sources have revealed that out of the around Rs 32 crore spent by the BMC in paying against the services availed or materials received from Lifeline Hospital Management Services, around Rs 22 crore was laundered.

This money was routed through shell companies, the ED claims. The agency has alleged that huge cash amounts were withdrawn and the money trail has been established. It has alleged that for the purpose of siphoning off money, some payments were made to eligible individuals but later they returned the money in cash to the suspects. The ED, however, at this stage has not disclosed where the money trail ends.