The people named in the FIR include the former Mumbai mayor Kishori Pednekar, contractor Vedant Innotect Private and its directors, as well as senior BMC officials, including a senior additional municipal commissioner (projects).
The EOW is investigating financial misappropriation in the purchase of Remdesivir injections (used to treat coronavirus), Covid body bags, and masks, as well as the funds allocated for the construction of Jumbo Covid centers and the establishment of oxygen generation plants. These alleged irregularities surfaced during Enforcement Directorate (ED) searches associated with an alleged Covid center scam case that was filed against the arrested businessman Sujit Patkar.
The EOW on Saturday registered the FIR at the Agridpada police station under the IPC sections of 409 of misappropriation, 418 (Cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect) and 420 (cheating )and 120 B of (criminal conspiracy). While the FIR names former mayor Kishori Pednekar, it also mentions the then additional municipal commissioner of (projects) and the then deputy municipal commissioner (central purchase department), along with unknown private individuals.
Sources said that IAS officer P Velrasu was the then additional municipal commissioner. Velrasu stated that he has no knowledge of the FIR being registered and mentioned that he has no comments to provide.
According to the FIR, MP Kirit Somiaya had submitted an application alleging a big scam in purchase of various goods viz mask, body bags and other items during the covid period by the purchase department. A preliminary enquiry (PE) was initiated and during the course of enquiry it transpired that indeed there violation in purchase of dead body bags in 2020.
Police officials said they recorded the statement of the medical officer of the BMC, Haridas Manohar Rathod, who was responsible for overseeing the day-to-day operations at CPD, BMC, and also held the additional charge of deputy dean, CPD, BMC during the relevant period. Necessary documents pertaining to the purchase of body bags for deceased Covid-19 victims were obtained. Additionally, the police recorded a statement from the proprietor of M/s Care One Solutions, the supplier of body bags and other items to the BMC during the Covid-19 period.
It was revealed that in April 2020, BMC had issued an expression of interest (EOI) for the procurement of 1,000 body bags for deceased Covid-19 patients. After a thorough examination of documents and testing of sample body bags, M/s Vedanta Innotech Pvt Ltd (referred to as VIPL) was identified as the eligible vendor. On April 16, BMC subsequently awarded a purchase order (PO)/work order to VIPL for the supply of 1,000 body bags at a rate of Rs 6,719 per bag. As per the agreement, VIPL successfully delivered 1,000 body bags to BMC.
Furthermore, on April 14, BMC had issued another Expression of Interest (EOI) for the additional procurement of dead body bags. Once again, VIPL emerged as the only eligible vendor during the scrutiny process. As a result, BMC made the decision to initiate a fresh EOI.
On April 29, the BMC issued a third Expression of Interest (EOI) with two vendors/bidders participating – Care One Solution and Vedant Innotect Private Limited.
Accordingly, M/s Care One Solutions post-negotiations, offered to supply body bags at Rs 2,583 per bag. In the meantime, the then mayor Pednekar called Haridas Rathod (holding additional charge of deputy dean, CPD, BMC) at her bungalow at Ranibagh, Byculla and instructed to give contract to Vedanta Innotech Pvt, Ltd (VIPL).
“During the inquiries, it was revealed that Rathod proposed the purchase order to issue Care one to supply 1,000 body bags. The first lot of 200 bodybags which was sought to be handed over at Andheri Sports Complex, was refused to be accepted by the BMC for no valid reasons. At the same time, due to the illegal directions of the then additional municipal commissioner (projects)(AMC-Purchase), and the then DMC, CPD, the samples submitted at the time of EOI were re-tested and declared unfit on May 18. Official said that a petty reason of water leakage in the bag was given to reject the contract. However, the purchase order was cancelled by BMC on May 15 itself, even before the results of the retesting were obtained,” said an official.
Thereafter, till June 2020, alternate supplier of body bags was not finalized due to various reasons. BMC continued to purchase body bags from Vedanta Innotech Pvt, Ltd (VIPL) at the rate of Rs 6,719 per bag.
Between the period May 16 to May 7, 2022, BMC purchased a total 1,200 body bags in four tranches and paid Rs 80,62,800 to VIPL. It is pertinent to note that prior to May 15, Care One Solutions had supplied about 100 body bags to other BMC run hospitals at the rate of 2,925 per bag, which is far cheaper than the rate at which these bags were procured from VIPL later.
The police conducting the investigation stated that during that period, the then deputy municipal commissioner of CPD, BMC, the then additional municipal commissioner (projects), BMC, the then mayor Pednekar, unknown public servants, and private individuals entrusted with the use of BMC funds and having control over said funds, engaged in a criminal conspiracy to favor contractor Vedanta Innotech Pvt. Ltd (VIPL) and its directors. They allegedly defrauded the Brihanmumbai Municipal Corporation (BMC) and committed a criminal breach of the trust of public funds amounting to Rs 50 lakh.
