Journalist Files PIL in Bombay High Court Alleging ₹16,600 Crore Bank Guarantee Fraud in MMRDA Tunnel Project
Journalist Files PIL in Bombay High Court Alleging ₹16,600 Crore Bank Guarantee Fraud in MMRDA Tunnel Project
Mumbai: A Hyderabad-based journalist, V Ravi Prakash, has filed a Public Interest Litigation (PIL) in the Bombay High Court, seeking a probe by the Special Investigation Team (SIT) or the Central Bureau of Investigation (CBI) into alleged fraudulent bank guarantees accepted by the Mumbai Metropolitan Region Development Authority (MMRDA) from Megha Engineering Infrastructure Ltd (MEIL). The case pertains to a ₹16,600 crore contract for the Borivali-Thane underground twin tunnel project.
Senior advocate Prashant Bhushan, representing the petitioner, presented the PIL before a bench comprising Chief Justice Alok Aradhe and Justice Bharati H Dangre. The court has scheduled the hearing for next week.
Allegations of Fraudulent Bank Guarantees
The PIL alleges that MEIL submitted six fraudulent bank guarantees issued by Euro Exim Bank, a St. Lucia-based entity incorporated under UK laws but unrecognized by the Reserve Bank of India (RBI). These guarantees, presented for packages 1 and 2 of the public project, allegedly aimed to bypass regulations and access public funds without legitimate security.
Violation of Official Guidelines
The petition cites a 2017 notification from the Maharashtra Public Works Department mandating that performance security must come from nationalized or scheduled banks. Additionally, a 2018 circular from MMRDA’s Finance Account Division reiterated that only guarantees from nationalized banks should be accepted for public procurement.
SBI’s Alleged Lapse
The PIL also accuses the State Bank of India (SBI) of authenticating SWIFT messages related to the foreign bank guarantees without conducting proper due diligence or risk assessment.
Political and Financial Irregularities
The journalist’s plea suggests a nexus between MEIL and political entities, involving mutually beneficial arrangements linked to electoral bonds. The petitioner claims that despite raising concerns with the RBI, CBI, Comptroller and Auditor General (CAG), and the Finance Ministry, no corrective actions have been taken.
PIL Demands:
- A thorough investigation by SIT or CBI into the alleged fraud.
- Termination of MMRDA’s contract with MEIL.
This development follows the Bombay High Court’s dismissal of appeals by Larsen & Toubro (L&T) in May 2023, after their bids for the same twin-tunnel project were rejected by MMRDA.
The case highlights concerns regarding adherence to public procurement norms and the need for stringent regulatory oversight in large-scale infrastructure projects.
