STP Scam In Delhi Jal Board: ED Seizes Rs.41 Lakh In Raids At 4 Cities


The Enforcement Directorate (ED) has seized Rs 41 lakh in cash, various incriminating documents, and digital evidence during a search operation at multiple locations in Delhi, Ahmedabad, Mumbai, and Hyderabad.

These raids, conducted on July 3, are linked to the Sewage Treatment Plant (STP) corruption case involving the Delhi Jal Board (DJB), the ED announced on Friday.

Case Investigation

The investigation began after Delhi’s Anti-Corruption Branch filed a First Information Report against Euroteck Environmental Pvt Ltd and others. The FIR alleges corruption in the augmentation and upgradation of 10 STPs at various locations, including Pappankala, Nilothi, Najafgarh, Keshopur, Coronation Pillar, Narela, Rohini, and Kondli.

Four tenders worth Rs 1,943 crore were awarded to different Joint Venture (JV) entities in October 2022.

According to the FIR, only three JVs participated in all four tenders. Each JV secured at least one tender, allegedly by mutually agreeing on their participation to ensure all tenders were awarded among them.

The tendering conditions were made restrictive, such as the adoption of IFAS technology, to limit participation to select entities. The initial cost estimate of Rs 1,546 crore was revised to Rs 1,943 crore during the tender process, which the ED claims led to inflated contracts and significant losses to the exchequer.

The ED’s investigation revealed that the DJB awarded the four tenders, totaling Rs 1,943 crore, to three JVs. In each tender, two out of the three JVs participated, ensuring all three secured contracts. The costs for upgradation and augmentation were kept the same, even though upgradation is generally less expensive.

Further scrutiny showed that all three JVs submitted identical experience certificates from a Taiwan project to secure the tenders, which were accepted without verification.

Subsequently, all three JVs subcontracted the work to Euroteck Environment Pvt Ltd, Hyderabad. The ED noted that the initial cost of the four tenders was about Rs 1,546 crore but was increased to Rs 1,943 crore without following due process or proper project reports.

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About the Author: Meera Verma