Megha Engineering provided ‘fraudulent’ bank guarantees for twin tunnel project: PIL in Bombay HC
The PIL also alleged quid-pro-quo arrangements between the project proponent MEIL and political parties related to electoral bonds.
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The PIL sought CBI or SIT probe into the complaints of the petitioner made last year into the alleged fraud and directed MMRDA to terminate the contract awarded to MEIL. (File Photo)
A Hyderabad-based journalist filed a PIL in the Bombay High Court Wednesday seeking investigation by SIT or CBI into alleged fraud bank guarantees accepted by MMRDA from Megha Engineering Infrastructure Ltd (MEIL) based on which contract of Rs 16, 600-crore Borivali-Thane underground twin tunnel project was awarded to MEIL.
Senior advocate Prashant Bhushan, representing petitioner journalist V Ravi Prakash, mentioned the PIL before a bench of Chief Justice Alok Aradhe and Justice Bharati H Dangre, which said the matter will be listed for hearing next week.
The PIL alleged that fraudulent bank guarantees were issued by foreign entity called Euro Exim Bank, based in St. Lucia and incorporated under the laws of England & Wales, and it was not a foreign bank recognized by the Reserve Bank of India (RBI).
The guarantees were issued in favour of Mumbai Metropolitan Region Development Authority (MMRDA) and on behalf of MEIL.
The PIL said that the September, 2017 notification of the state Public Works Department stated that performance security can be acted in the form of bank guarantees issued by nationalised and scheduled banks and another 2018 circular of Finance Account Division, MMRDA also provided that guarantees from nationalised bank should be accepted for public procurement.
The PIL further claimed that the State Bank of India (SBI) authenticated SWIFT messages related to the bank guarantees by the foreign entity concerned without conducting any due diligence and without considering any risk or liability.
It alleged that the MEIL had given a total six fraudulent bank guarantees for packages 1 and 2 of the public project “to circumvent and play fraud to obtain public funds without providing any secured guarantee, with knowledge that the same could not be realised.”
The PIL also alleged quid-pro-quo arrangements between the project proponent MEIL and political parties related to electoral bonds.
The petitioner claimed that while he had made complaints to various authorities including RBI, CBI, CAG and Ministry of Finance raising grievances, no actions had been taken.
The PIL sought CBI or SIT probe into the complaints of the petitioner made last year into the alleged fraud and directed MMRDA to terminate the contract awarded to MEIL.
In May, 2023, the Bombay HC had dismissed pleas from engineering firm Larsen & Toubro (L & T) whose bids for the construction of twin tube tunnel project were rejected by MMRDA.
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