ED uncovers 322 bank passbooks linked to mule accounts in probe into Rs 2,000 crore school construction scam
by Utsav RoyIn April, the Delhi Police’s Anti-Corruption Branch (ACB) filed an FIR against former AAP ministers Manish Sisodia and Satyendar Jain regarding allegations of corruption linked to the construction of classrooms in government schools.
Following searches at 37 locations as part of an ongoing money laundering investigation into a Rs 2,000 crore scam involving classroom construction in Delhi government schools, the Enforcement Directorate (ED) announced on Friday the seizure of 322 bank passbooks connected to mule accounts. Additionally, officials recovered original files belonging to the Delhi Government and rubber stamps containing names and designations of Public Works Department (PWD) officials.
The ED revealed that these mule accounts were opened under the names of labourers and used to channel government funds through apparently legitimate transactions.
The ACB had registered the FIR on April 30 and has been investigating the alleged irregularities. On Friday, the branch also interrogated Manish Sisodia in relation to the case.
“The ED initiated an investigation on the basis of the FIR registered by the ACB against Manish Sisodia (the then Education Minister), Satyendra Jain (the then PWD Minister) and others pertaining to financial misappropriation exceeding Rs 2,000 crore in the construction of approximately 12,748 additional classrooms by the PWD between 2015 and 2023,” an ED representative said.
According to the central agency, the original plan required construction of 2,405 classrooms, but the project’s scale was arbitrarily expanded to 7,180 equivalent classrooms and later further inflated to 12,748 rooms without obtaining necessary approvals or sanctions. This unauthorized increase led to significant cost overruns.
The Enforcement Directorate (ED) spokesperson highlighted, “There was unwarranted adoption of higher-end specifications suggested by M/s Babbar & Babbar Associates, along with execution of duplicate and overpriced work. Cost escalations reached as high as 49.03 percent during Priority-I and Priority-II phases.”
During searches, the agency reportedly uncovered substantial incriminating evidence at a private contractor’s premises. “Seized items included original government departmental files along with rubber stamps bearing names and designations of Public Works Department officials,” the spokesperson noted.
Further, the ED found forged letterheads of multiple private contractors and shell companies that were used to produce fraudulent procurement records. Fake purchase bills were also confiscated, the spokesperson added.
“Incriminating evidence related to bogus invoices submitted to Delhi government departments with inflated or entirely fabricated claims was recovered. Numerous dummy companies lacking any real infrastructure, documentation, or operational capacity were identified, yet received significant payments linked to the construction of additional classrooms. Alongside, a large volume of incriminating documents and digital proof was seized during the operation,” the spokesperson said.
Responding to the ED’s actions, AAP stated, “BJP is aggressively demolishing slums and uprooting livelihoods of the poor across Delhi. These raids are nothing more than politically motivated stunts designed to divert public attention from BJP’s anti-people policies. Allegations hold no ground and are timed to distract from ongoing injustices.”