What is the Covid centre ‘scam’ in which ED is conducting raids across Mumbai?

The places that are being searched by the ED include the Chembur residence of Suraj Chavan, a close aide of Uddhav Thackerey’s son Aaditya Thackeray and also the Santacruz residence of Sujit Patkar, a close aide of Sanjay Raut, another Shiv Sena (UBT) leader. The agency is also searching the premises of IAS officer Sanjeev Jaiswal—who was additional municipal commissioner of the Brihanmumbai Municipal Corporation. Lifeline Hospital Management Services in Sasmira Marg, Worli, as well as suppliers, contractors and middlemen involved in the alleged scam are also being searched.

When was the case registered?

The ED’s money-laundering investigation into the alleged scam related to the BMC’s “jumbo” Covid centres is based on a case registered in August last year at the Azad Maidan police station by Somaiya. In October 2022, the case was transferred to the EOW.

What’s the case all about?

During the Covid pandemic, field hospitals were being set up in Mumbai by the BMC. It has been alleged by the BJP that contracts were given at exorbitant rates to contractors who were linked to Shiv Sena leaders but had no prior experience in the healthcare service sector.

Who all are named in the case?

The August 24, 2022, FIR names Lifeline Hospital Management Services and its partners including Sujit Mukund Patkar, Dr Hemant Ramsharan Gupta, Sanjay Madanlal Shah and Raju Nandkumar Salunkhe. The EOW in January obtained details pertaining to the contracts and payments made to Lifeline Hospital Management Services, which was contracted by the civic body to set up jumbo Covid centres during the pandemic.

What are the allegations?

Somaiya has alleged in his police complaint that the accused firm got the contract on the basis of forged documents, including its partnership deed. He also alleges that the firm concealed from the BMC the fact that it had been blacklisted by the Pune Metropolitan Region Development Authority from providing medical services.

What are police and ED probing?

Somaiya earlier alleged that the pre-bid meeting for the 100-bed jumbo facility at Dahisar was convened on June 25, 2020, and the expression of interest was called on June 27. Lifeline Hospital Management Services was established on June 26. “Thus, even before the partnership firm came into existence, the accused attended a pre-bid meeting and secured the contract for operation and management of Covid ICU beds at Dahisar and was requested to mobilise manpower within seven days,” Somaiya stated in a complaint he had filed before a city court in March last year. The probe agencies are looking into the alleged irregularities in the awarding of the contracts for healthcare services and staff by the BMC. The EOW is probing the criminal aspect of the alleged scam while the ED is trying to track the money trail of the proceeds of the alleged crime.

Who has been arrested so far?

The EOW has so far arrested two people—Raju Nandakumar Salunke alias Rajiv (48) and Bala Ramchandra Kadam alias Sunil (58). Salunkhe is one of the partners in Lifeline Hospital Management Services. The EOW investigation has revealed that around Rs 82 lakh was transferred from Salunkhe’s bank account to Kadam’s bank account. Amounts of Rs 87.31 lakh and Rs 45 lakh were also transferred from the company’s bank account to Kadam’s bank account. When Kadam was questioned about the transaction of Rs 87.31 lakh, he said it was used for the company but failed to provide any supportive documents. Similarly, when asked about the transaction of Rs 45 lakh, he said it was used to pay the rent of the company office. However, the landlord told the EOW that he had not received any money from Kadam.

Who all have been questioned?

The EOW has so far questioned many BMC officials including the municipal commissioner IS Chahal. Joint municipal commissioner (improvement) Ramesh Pawar, who was then deputy municipal commissioner was also quizzed. “Pawar was questioned about under whose influence, the Patkar-led company was allowed to take part in the tendering despite not having any experience in healthcare,” EOW sources said. He is not a suspect in the case.