The Income Tax (I-T) investigation wing is currently conducting searches at multiple locations in Mumbai and other areas as part of the probe into the BMC’s alleged oxygen supply scam during the COVID-19 pandemic, involving inflated prices for the procurement of oxygen.
The searches also include premises associated with the contractors involved in the case. It has been alleged that the BMC paid a contractor Rs 140 crore for the procurement and supply of oxygen during the pandemic, but only a fraction of the funds were used for the intended purpose, with the rest being diverted for other purposes. Earlier, the Enforcement Directorate (ED) had investigated the oxygen supply contractor, Romin Chheda of Highway Construction, for alleged money laundering in connection with the COVID-19 scam. Chheda is a prominent contractor with political influence who has worked with the BMC for an extended period through his company. He was also involved in the renovation of a civic-run zoo in Byculla. During the pandemic, the BMC awarded Chheda the contract for the procurement and supply of oxygen. He was tasked with supplying oxygen to hospitals and field COVID-19 centers during a critical oxygen shortage in the city.
It is alleged that Chheda subcontracted the work to another of his companies, a paper company, which ultimately purchased the oxygen and necessary equipment from a supplier based in Delhi. It was discovered that the Delhi-based supplier billed the paper company, which then inflated the bill and charged the amount to the company through which Chheda secured the BMC contract.
