Bangalore : Directorate of Enforcement (ED), has filed Prosecution Complaint against Private Contractors N C Nagaraj, S D Shashikumar, Bharathi wife of S D Shashikumar, G Kumar Swamy, M Nagesh, C Subramani, G S Shivaswamy, Babu Rao and K S Bharath in Bruhat Bengaluru Mahanagara Palike (BBMP) Scam case under the provisions of Prevention of Money Laundering Act, 2002 (PMLA). Earlier movable & immovable properties belonging to them worth Rs. 5.12 Crores (approx) were also attached.
ED initiated money laundering investigation in the matter on the basis of chargesheet filed by Crime Investigation Department, Government of Karnataka (for the offences u/s 471 and 120(B) of IPC) against 40 Engineers and 42 contractors wherein, it was alleged that the BBMP had sanctioned Work Orders to the aforesaid licensed contractors to execute a specific work (discussed in the said work orders). But it was revealed that the Contractors failed to execute the work completely/ properly even though they had received full Bill amount against the work specified in the said Work Orders. This caused heavy loss to BBMP as well as to the exchequer at large. It was further alleged that the accused contractors were also indulged in criminal activities viz., criminal conspiracy, created false documents, etc., to prove that they had executed the allotted work completely.
Investigation conducted under PMLA, 2002 revealed that the above referred licensed contractors participated in the tendering process and after being awarded the contract, they executed sub-standard work and claimed excess bill than what they were entitled to. The excess amount drawn from BBMP was used by them for their personal gain and thereby causing loss to the Government of Karnataka. Accordingly, these contractors were found involved in money laundering and hence were made accused in the Prosecution Complaint filed by the ED before the Hon’ble Special Court for PMLA. Earlier various movable and immovable properties belonging to them worth Rs5.12 Crores (approx) were attached by ED vide Order dated 29.01.2019 which was also confirmed vide order dated 22.07.2019 by the Adjudicating Authority (PMLA). Further investigation in this case is under progress.