Mumbai: The Enforcement Directorate (ED) has named four additional individuals as accused in the ongoing investigation into the alleged COVID-19 treatment centre scam. The accused have been charged with involvement in the “generation, layering, and parking of the proceeds of crime.”
Details of the Case
The scam revolves around fraudulent activities in securing and operating contracts for COVID-19 treatment centres during the pandemic. Businessman Sujit Patkar, an aide of Shiv Sena (UBT) MP Sanjay Raut, is a prime accused in the case and is already in judicial custody.
The ED recently filed a supplementary chargesheet against:
- Sunil Kadam
- Sonu Bajaj
- Sanjay Parab
- Ravikant Singh
A special court, presided over by Judge A. C. Daga, took cognizance of the chargesheet and issued summons to the accused, requiring their appearance on December 31.
Key Findings from the Chargesheet
Sunil Kadam’s Role
- Allegedly involved in generating and layering Rs. 32.44 crore in proceeds of crime in collaboration with Lifeline Hospital Management Services, a firm central to the scam.
- Secured tenders fraudulently by submitting false and incomplete documents, leveraging his influence despite not being an official partner of the firm.
- Received Rs. 1.81 crore directly into his personal account, which was used to purchase property in the name of associate Sonu Bajaj.
Sonu Bajaj’s Role
- Aided Kadam by parking ill-gotten money, specifically through the purchase of property using proceeds of crime.
Roles of Sanjay Parab and Ravikant Singh
- Played significant roles in the layering process, further obscuring the trail of the proceeds of crime.
Court Observations
The court stated that all accused appeared to be complicit in laundering tainted money. Their actions involved:
- Generating proceeds of crime through fraudulent contracts.
- Layering funds to obscure the origin of the money.
- Attempting to “make tainted money untainted” through investments and purchases.
The chargesheet provides sufficient grounds for prosecution under the Prevention of Money Laundering Act (PMLA).
Background of the Scam
The ED alleges that Sujit Patkar, owing to his proximity to a “politically exposed person,” managed to secure a lucrative contract for his firm Lifeline Hospital Management Services. The contract involved staffing COVID-19 treatment facilities in Dahisar and Worli during the pandemic.
- The firm allegedly obtained the tender using incomplete and fraudulent documentation.
- Payments received fraudulently from the civic body led to the generation of Rs. 32.44 crore in proceeds of crime.
Current Status
The total number of accused in the case now stands at 11, including Sujit Patkar. Investigations are ongoing to trace the complete flow of funds and identify other possible accomplices.
The case underscores the need for transparency and accountability in emergency contracts, particularly during crises such as the COVID-19 pandemic.
