Mumbai, January 30, 2024 – The City Civil & Sessions Court, Mumbai, has rejected the bail application of businessman Romin Chandrakant Chheda, accused in a multi-crore financial fraud related to the installation of oxygen generation plants in municipal hospitals during the COVID-19 pandemic.
Background of the Case
The case, registered under C.R. No. 65 of 2023 with the Economic Offences Wing (EOW), Mumbai, involves allegations that Chheda, through his firm, secured tenders worth over ₹130 crore for installing oxygen generation plants at nine Brihanmumbai Municipal Corporation (BMC) hospitals and Jumbo COVID-19 Centers. The prosecution alleges that the installations were delayed beyond the stipulated 30-day period, leading to a penalty of ₹3.16 crore. Further, it is claimed that Chheda, in collusion with municipal authorities, manipulated records to show an earlier installation date, thereby evading an additional penalty of ₹6 crore.
The charges against Chheda include forgery, conspiracy, and cheating under Sections 218, 418, 465, 467, 468, 471 read with Sections 34 and 120(B) of the Indian Penal Code (IPC). The case originated from an FIR (No. 0929 of 2023) registered at Nagpada Police Station.
Court Proceedings and Arguments
Chheda’s counsel, Advocate Ayush S. Pasbola, argued that the dispute was contractual in nature and that there was no fraudulent intent. He contended that:
- The delay in installation was due to logistical challenges during the pandemic.
- There was no evidence of oxygen generation plants being non-functional.
- Handing over and taking over reports were genuine and backed by documentary proof.
- The penalty for delay had already been levied and paid.
- Chheda had been in custody since November 24, 2023, and most of the investigation had been completed.
However, Special Public Prosecutor (SPP) Seema Deshpande opposed the bail, highlighting that:
- Chheda colluded with BMC officials to fabricate handing-over reports, ensuring they lacked proper dates.
- Oxygen samples were allegedly tested at a private laboratory in Ghaziabad, Uttar Pradesh, within an unusually short period, raising suspicions of manipulation.
- The delayed installations compromised public health infrastructure during a critical period.
- Chheda’s company had secured 57 tenders from BMC despite not meeting qualifications for some projects, indicating deeper irregularities.
- A forensic audit was pending, and releasing Chheda could lead to tampering of evidence.
Court’s Decision
After reviewing the arguments, Designated Judge Adittee Uday Kadam ruled that the allegations were serious and involved substantial public funds. The court observed that Chheda’s role extended beyond mere contractual defaults, implicating him in a conspiracy to commit financial fraud. It noted that:
- The records of handing-over reports were manipulated.
- The installation of oxygen plants was significantly delayed.
- Chheda’s firm benefited from undue financial gains through misrepresentation.
- A thorough investigation was still underway, including scrutiny of BMC officials who may have been complicit.
Given the scale of the alleged scam, the pending forensic audit, and the potential risk of tampering with evidence, the court denied Chheda’s bail request.
Conclusion
The rejection of Chheda’s bail application underscores the gravity of financial fraud cases linked to the COVID-19 response. With ongoing investigations into municipal tenders and forensic audits still pending, the case is expected to reveal further insights into potential misconduct within public procurement processes.
The prosecution will now proceed with gathering additional evidence, and Chheda remains in judicial custody at Arthur Road Central Prison. The legal battle continues as the authorities seek to uncover the full extent of financial irregularities in the oxygen plant installations.
