Mumbai Police's EOW says Romin Chheda made Rs 30-crore in oxygen contract

Chheda was arrested by the EOW last week following charges against him and unknown officials. Pic/Twitter

During the COVID-19 crisis, while people in Mumbai struggled to get enough oxygen, Romin Chheda, a garment factory owner from Matunga with strong political connections, allegedly made Rs 30 crore by setting up oxygen plants for the city. He was arrested earlier over claims of tricking the BMC out of Rs 6.32 crore. On Monday, Chheda appeared before the court where they extended his custody for two more days. The Economic Offences Wing (EOW) is looking into possible law breaches in how he got the contract using a power of attorney.

The EOW found that the actual bidder for installing nine oxygen plants in government hospitals and six in jumbo COVID centres was an Allahabad-based Highway Construction Company, Unissi India Pvt. Ltd., with a contract worth Rs 140 crore for two tenders. As per the EOW official, Chheda supposedly made Rs 30 crore, while the original bidder earned just Rs 2 crore. Investigators were surprised and suspect there might have been a pre-planned arrangement and undue influence due to political contacts, which they're now probing.

EOW is looking into possible law breaches in how he got the contract using a power of attorney. File pic

EOW sources also mentioned that some plants mentioned in the contract with the BMC were up and running, while others weren't. Additionally, the plants set up for the jumbo centres were taken down after the COVID cases decreased. "We are scrutinizing the details of dismantled oxygen plants, suspecting irregularities. Currently, we are investigating a Rs 6.32 crore scam where the contractor faced no penalties despite delaying the setup of the oxygen plants as per the agreement. We observe close connivance of BMC officials, who waived the penalty despite being aware that Chheda earned R30 crore from the tender," added an officer.

During Chheda's court appearance on Monday, his lawyer Abad Ponda argued that Chheda had cooperated, having appeared before the agency multiple times. Ponda contended that sections related to forgery were erroneously included in the FIR. Regarding the plant delay, Ponda asserted that Chheda's employee signed the documents as per BMC regulations, and Chheda awaited third-party approval to ensure the functionality of the oxygen plants. EOW claimed a two-month delay in the plant setup, with signatures in August 2021 and the plants becoming operational in October.

Chheda was arrested by the EOW last week following charges against him and unknown officials. The EOW is investigating various COVID-19-related scams, including the khichdi scam, body bag scam, and COVID jumbo centre scam. Sources in the EOW also claimed that Chheda has been influential in the BMC, securing several contracts through political connections. In the past five years, he has acquired at least three dozen contracts from the BMC, some of which were obtained through power of attorney. Chheda is believed to have close links with Suraj Chavan, who has ties with Aaditya Thackeray. Chavan is also under investigation in the khichdi scam.

Rs 140 cr
Amount the Allahabad based company was paid for two tenders

With inputs from Apoorva