ED Questions Retired IAS Officer in Tender Fraud Case
The Enforcement Directorate summoned and questioned a retired senior Indian Administrative Service officer on June 12 in connection with a money laundering inquiry arising from the alleged irregular award of road and infrastructure contracts during his tenure as a departmental head in the Gujarat government’s infrastructure development portfolio.
Background of the Allegation
The matter originates in a complaint filed before the CBI by a contractor who had been excluded from a tender process despite submitting the technically qualifying bid. The complaint alleged that contracts worth over ₹1,200 crore had been systematically directed to a specific group of contractors with advance notice of evaluation criteria, in exchange for kickbacks channelled through shell companies.
The CBI, after registering a preliminary enquiry, referred the financial aspects to the Enforcement Directorate for investigation under the Prevention of Money Laundering Act.
What the ED Is Investigating
The ED’s inquiry focuses specifically on whether any proceeds of the alleged corruption were integrated into legitimate assets through layered financial transactions. A preliminary asset tracing exercise has identified properties registered in the names of the officer’s family members and associated entities that the ED believes may be proceeds of crime. The officer denies all allegations and has stated through his counsel that he cooperated fully with the questioning and that the property acquisitions in question were made from legitimate income sources.
Significance
The questioning of a retired senior bureaucrat under PMLA provisions is a significant step in an investigation that has broader implications for transparency in public procurement in Gujarat. The case is being closely tracked by the Sandesh Ahmedabad desk.