Delhi Jal Board Consultant, Named In Money Laundering Case, Dropped: Sources

The Delhi government has removed Senior Consultant in the Delhi Jal Board Ajay Gupta after it transpired that he is accused in a money laundering case filed by the Enforcement Directorate, top sources told NDTV. 

Appointed on October 24, Gupta was relieved with immediate effect once officials became aware of his involvement, they said.

According to officials, Gupta's appointment was processed by the Jal Board but it was cancelled the moment the ED complaint came to light. The Enforcement Directorate's Delhi zonal office has recently filed a prosecution complaint against 14 accused, including former Delhi minister Satyendar Jain, ex-DJB CEO Udit Prakash Rai, Gupta and senior engineers, alleging large-scale corruption and money laundering in connection with four sewage treatment plant (STP) tenders.

The action against Gupta comes a day after the agency filed its prosecution complaint before a Special Court in Delhi under the Prevention of Money Laundering Act or PMLA, detailing alleged manipulation of tenders for upgrading 10 sewage treatment plants across the national capital.

In its statement, the ED said the accused include former Water Minister and DJB Chairman Satyendar Kumar Jain, ex-CEO Udit Prakash Rai, Ajay Gupta, ex-Chief Engineer Satish Chandra Vashishth, and several private individuals linked to the tendering process.

The probe stems from a First Information Report by the Anti-Corruption Branch, alleging that Hyderabad-based Euroteck Environmental Pvt. Ltd has rigged four DJB tenders.

Investigators found that EEPL Managing Director Rajakumar Kurra allegedly colluded with DJB officials and intermediaries to tweak tender conditions, specifically restricting eligibility to projects using "IFAS technology with fixed media" and ensuring that EEPL became the sole eligible bidder.

What the Alleged DJB Tender Scam Looks Like

Investigators say the Delhi Jal Board's STP tender case was essentially a tender-rigging and kickbacks racket, where officials and intermediaries allegedly tweaked eligibility conditions so narrowly that only one company, Euroteck Environmental Pvt. Ltd, could qualify for the four major sewage treatment plant contracts. 

With competition eliminated, ED claims the company made nearly Rs 10 crore in undue gains, while paying Rs 6.73 crore in bribes to senior officials using cash, hawala networks and bogus invoices. The agency has pegged the total proceeds of crime at Rs17.70 crore and has already attached assets worth Rs 15.36 crore. Former minister Satyendar Jain, ex-CEO Udit Prakash Rai, Ajay Gupta and senior engineers have been named in the prosecution complaint. 

With Gupta's removal, the Delhi government has moved swiftly to distance itself from the controversy even as the financial probe agency continues digging deeper. The investigation is ongoing.