Tainted contractor, who ran cloth shop, got contract to set up oxygen plants during Covid-19

The General Cheating-1 branch of the EOW Wednesday registered a case against Ghatkopar-based contractor Romil Chheda of Highway Construction Company and officials concerned of BMC. They were all booked under sections 418, 465, 467, 468, 471, 218, 120(b), and 34 of the Indian Penal Code.

The tainted contractor Chheda, who runs cloth shop and had no prior experience, was setting up oxygen plants for Mumbaikars during Covid-19 emergency, police sources said.

Chheda’s place was earlier raided by ED in July this year in connection with the irregularities they came across in the oxygen plant contracts while probing other matters.

Chheda is an authorised representative of Highway Construction Company, a company based in Allahabad. Highway Construction Company is the same entity that was penalised in the Byculla Zoo Penguin Enclosure scam, sources said.

As per the EOW’s FIR, the alleged offences related to oxygen plants were committed between April 2021 and January 2022 at the Municipal Workshop in Byculla-East and at the site of the oxygen generation plants on the premises of nine hospitals of BMC.

As per the police complaint, during the preliminary investigation it was found that the officials concerned of the BMC, who were looking after the works of contracts 1 and 2 (contracts for the construction of an oxygen generation plant in the Municipal Hospital and Jumbo Covid Centre), overlooked the eligibility rules while awarding contracts.

On behalf of Highway Construction Company, Unissi India Pvt., the original manufacturer, did not fulfil the quality eligibility criteria. Despite this contract was awarded to the Highway Construction Company.

The accused, Romin Chheda, who had the power of attorney for Highway Construction Company, allegedly connived with other accused for the said offence. “While the construction of the oxygen generation plant was not completed within the prescribed period mentioned in the contract, it was shown that the work on the plants was completed in August 2021. Also, fake heading over and taking over reports were made, and for the same limited period, they also allegedly fraudulently charged a late fee, thus causing a wrongful loss of Rs 6 crore to the civic body,” states the FIR.

The agency is also investigating if profits were shared with individuals with political influence.

In July this year, ED carried out searches in various matters pertaining to irregularities in BMC during Covid-19, including the oxygen plant fraud. The agency had raided 10 places in Mumbai, Uttar Pradesh, Rajasthan, and Haryana.

Chheda is also under scanner for allegedly providing substandard equipment that does not match the standard quality and requirements, and despite this, his files were processed by civic officials, and he was paid exorbitantly, the source added.

Chheda’s name also cropped up in the investigation related to Suraj Chavan, a close aide of Shiv Sena MLA Aaditya Thackeray.

The EOW will also check if the financial irregularities are linked to any political leader or their frontmen, said an EOW officer.

Soon, the ED may also register a money laundering case in the matter and launch an investigation, sources hinted.