Premium
This is an archive article published on July 4, 2021

Officials deny Shiv Sena’s allegations of Rs 110 crore scam in smart city projects, BJP MLC to file defamation suit

Pimpri-Chinchwad Municipal Commissioner Rajesh Patil, who is the CEO, refused to comment when asked about the allegations levelled by the Shiv Sena.

PuneAt a press conference in Akurdi on Saturday, Shiv Sena leader Sulbha Ubale, who is the Shiv Sena Women’s Wings Pune District coordinator, alleged a “financial loot” by Krystal Integrated Services Pvt Ltd, which bagged the smart city contract along with two other companies. (Representative Image)

OFFICIALS OF the Pimpri-Chinchwad Smart City Corporation Ltd on Sunday denied the charges of Rs 110 crore scam in the smart city project and said that its functioning is “transparent”. At the same time, BJP MLC Prasad Lad, against whose family the allegations were made has also denied the charges and has threatened to file a defamation suit against Shiv Sena and its leaders.

“The functioning of Pimpri-Chinchwad Smart City Corporation Ltd is transparent and there was complete transparency in the implementation of the projects,” said Neelkanth Poman, joint CEO of Pimpri-Chinchwad Smart City Ltd.

Pimpri-Chinchwad Municipal Commissioner Rajesh Patil, who is the CEO, refused to comment when asked about the allegations levelled by the Shiv Sena.

Lad in a statement said the allegations are baseless and politically motivated. “I am going to file a defamation suit against the Shiv Sena and its leaders,” he said. Lad said he had resigned from the said company three years back and was neither its director nor holding any shares.

“The allegations have been made without verifying facts. I have got in touch with the smart city administration and they said they have given a reply to every allegation made,” said the BJP MLC, who is considered to be close to former Chief Minister Devendra Fadnavis.

At a press conference in Akurdi on Saturday, Shiv Sena leader Sulbha Ubale, who is the Shiv Sena Women’s Wings Pune District coordinator, alleged a “financial loot” by Krystal Integrated Services Pvt Ltd, which bagged the smart city contract along with two other companies.

The Sena demanded an investigation by the Comptroller and Auditor General of India (GAG) and the Enforcement Directorate (ED) against the firm and BJP MLC Prasad Lad. Besides, Ubale, other party leaders like former MLA Gautam Chabukswar, Sena’s city chief Sachin Bhosale, corporator Meenal Yadav, Anant Korhale, Dhanjay Alhar and Anita Tutare were present at the press conference.

Story continues below this ad

Ubale alleged that Lad has done important dealings with Pimpri-Chinchwad Smart City Ltd as contractor and sub-contractor.

“Prasad Lad, his wife, son, daugther and brother are directors in Krystal Integrated Services Ltd. This company has bagged smart city works by forming a joint venture with Tech Mahindra. Pimpri-Chinchwad Smart City has floated a tender for Rs 350 crore. But it was given to Crystal and Tech Mahindra for Rs 520 crore,” she alleged.

However, officials of the smart city project rejected the claims and said that the contract was awarded for Rs 441 crore, which included 18 per cent GST amount. Officials also said that the contract was awarded to a consortium of three companies and not to one company as being alleged.

Ubale also claimed wrongdoings in various other works like the purchase of water meters and generator installation. She said that a water meter costs Rs 10,000-15,000 in the open market. “However, it was purchased by Crystal at Rs 1 lakh per unit,” Ubale said. “At least Rs 72 crore scam has been committed in these purchases,” she alleged.

Story continues below this ad

Officials, however, said that the meters have been procured for five years and the maintenance will also be looked after by the company.

Likewise, for the installation of diesel generator sets the charges levied are Rs 2.57 crore. “However, on Tech Mahindra portal, the charges are Rs 21.26 lakh for installation,” the party claimed.

Ubale said that in case of delay a fine of Rs 25-30 crore has to be imposed on the firms according to the contract. “However, they are being fined only in lakhs,” she alleged. She also alleged irregularity in the online quality analysis-STP monitoring system.

“In the Rs 520 crore project, the Krystal company has committed a fraud of Rs 110 crore. Therefore, an investigation should be launch against the company. MLC Prasad Lad’s relatives are directors of the company and therefore an ED probe should be launch against him. Otherwise, we will be forced to launch an agitation,” Ubale said.

Story continues below this ad

Shiv Sena said according to the rules, an elected representative or his relatives cannot be part of the company, which bags a civic or a government contract. “In such case, the elected representative is disqualified. Will Lad then be disqualified,” asked Ubale.

– Stay updated with the latest Pune news. Follow Express Pune on Twitter here and on Facebook here. You can also join our Express Pune Telegram channel here.

Manoj More has been working with the Indian Express since 1992. For the first 16 years, he worked on the desk, edited stories, made pages, wrote special stories and handled The Indian Express edition. In 31 years of his career, he has regularly written stories on a range of topics, primarily on civic issues like state of roads, choked drains, garbage problems, inadequate transport facilities and the like. He has also written aggressively on local gondaism. He has primarily written civic stories from Pimpri-Chinchwad, Khadki, Maval and some parts of Pune. He has also covered stories from Kolhapur, Satara, Solapur, Sangli, Ahmednagar and Latur. He has had maximum impact stories from Pimpri-Chinchwad industrial city which he has covered extensively for the last three decades.   Manoj More has written over 20,000 stories. 10,000 of which are byline stories. Most of the stories pertain to civic issues and political ones. The biggest achievement of his career is getting a nearly two kilometre road done on Pune-Mumbai highway in Khadki in 2006. He wrote stories on the state of roads since 1997. In 10 years, nearly 200 two-wheeler riders had died in accidents due to the pathetic state of the road. The local cantonment board could not get the road redone as it lacked funds. The then PMC commissioner Pravin Pardeshi took the initiative, went out of his way and made the Khadki road by spending Rs 23 crore from JNNURM Funds. In the next 10 years after the road was made by the PMC, less than 10 citizens had died, effectively saving more than 100 lives. Manoj More's campaign against tree cutting on Pune-Mumbai highway in 1999 and Pune-Nashik highway in 2004 saved 2000 trees. During Covid, over 50 doctors were  asked to pay Rs 30 lakh each for getting a job with PCMC. The PCMC administration alerted Manoj More who did a story on the subject, asking then corporators how much money they demanded....The story worked as doctors got the job without paying a single paisa. Manoj More has also covered the "Latur drought" situation in 2015 when a "Latur water train" created quite a buzz in Maharashtra. He also covered the Malin tragedy where over 150 villagers had died.     Manoj More is on Facebook with 4.9k followers (Manoj More), on twitter manojmore91982 ... Read More


Click here to join Express Pune WhatsApp channel and get a curated list of our stories

Latest Comment
Post Comment
Read Comments
Advertisement
Loading Taboola...
Advertisement