ED seizes 322 mule accounts, dummy firms in ₹2K cr 'Delhi classroom scam'

ED raids 37 sites in Delhi, recovers fake contractor bills, government files and 322 mule-linked passbooks in Rs 2,000 crore classroom construction scam probe

The Enforcement Directorate (ED) during search operations at 37 locations across Delhi on Wednesday — under provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the ‘Delhi classroom construction scam’ — recovered 322 bank passbooks.

 

These were linked to mule accounts opened in the names of labourers and were used to divert government funds under the guise of legitimate transactions.

 

“Furthermore, forged letterheads of various private contractors and shell entities, which were used to generate fake procurement records and fictitious purchase bills, were found and seized. Evidences relating to fake invoices submitted to Government of the National Capital Territory of Delhi (GNCTD) departments, showing inflated or entirely bogus claims, were found and seized,” said a press statement by the ED.

 

ED initiated investigation on the basis of FIR registered by the anti-corruption branch, GNCTD, against Manish Sisodia (the then education minister), Satyendra Jain (the then public works department or PWD minister) and others.

 

It was pertaining to financial misappropriation exceeding ₹2,000 crore in the construction of around 12,748 additional classrooms by the PWD, GNCTD, between 2015 and 2023. 

 

ED further said that several dummy firms have been found during the search and they were having no real infrastructure, documentation, or operational legitimacy. These firms were shown to have received substantial payments for construction activities relating to the additional classrooms.

 

“Additionally, substantial incriminating documents and digital evidence have been recovered and seized during the search,” said ED.

 

“Despite an initial requirement for 2,405 classrooms, the project scope was arbitrarily increased to 7,180 equivalent classrooms. And, subsequently it went up to 12,748 classrooms without proper sanction or approvals, resulting in massive cost escalations,” said the ED press statement.

 

ED further said that there was unjustified adoption of premium specifications proposed by Babbar & Babbar Associates, and execution of duplicate and inflated works. Cost escalations of up to 49.03 per cent were observed across Priority-I and Priority-II phases.

 

The investigative agency unearthed substantial incriminating evidence from the premises of private contractors.

 

“Among the materials seized were original departmental files belonging to the GNCTD, as well as rubber stamps bearing the names and designations of officials from the PWD,” the ED added.