‘Four firms, same controller, and old computers at inflated prices’: Madhya Pradesh probes new ‘scam’

The Madhya Pradesh Economic Offences Wing (EOW) is investigating a procurement fraud case worth Rs 10.99 crore in the Social Justice and Empowerment of Persons with Disabilities Department. The alleged fraud involves four firms that were presented as independent competitors in a GeM tender, despite being controlled by a single individual.

The procurement involved computers, printers, and UPS equipment, and the alleged fraud includes the supply of inferior, old, and used equipment at inflated prices. The EOW alleges that the four firms were set up fraudulently by Randhir Kumar Patel, Hemlata Patel, Ashok Kumar Singh, and Devendra Singh, with the firms sharing the same address, mobile number, and email domain.

The EOW also found that the four firms alternated in winning tenders and quoted extremely similar rates, indicating a pattern of collusion. The EOW claims that the four accused acted together in a deliberate scheme of forgery and fraud to misappropriate government money and falsely supply substandard equipment. The EOW further alleges that the firms presented old equipment as new, committed forgery in financial documents and obtained higher rates, causing financial losses to the government.