The Enforcement Directorate (ED) revealed on Friday that it had seized 322 bank passbooks tied to mule accounts opened in the names of labourers, allegedly used to siphon off Delhi government funds in a multi-crore scam linked to classroom construction under the previous Aam Aadmi Party (AAP) regime. The agency’s findings emerged from raids conducted on 18 June at 37 locations across the capital.
The AAP dismissed the ED’s actions as a “frantic bid” to shift public focus, branding the allegations against its leaders as “politically driven.” The investigation, pursued under the Prevention of Money Laundering Act (PMLA), follows a 30 April FIR by Delhi’s Anti-Corruption Branch (ACB) targeting former AAP ministers Manish Sisodia, Satyendar Jain, and others in Arvind Kejriwal’s cabinet. Sisodia, 53, oversaw finance and education, while Jain, 60, managed the Public Works Department (PWD) among other portfolios.
The ED’s statement detailed “significant incriminating evidence” uncovered during the searches, including original Delhi government files and PWD rubber stamps found at a private contractor’s premises.
Additionally, forged letterheads of contractors and shell companies, used to fabricate procurement records and fake purchase bills, were confiscated. The agency highlighted the 322 passbooks as evidence of illicit fund diversion through accounts opened under labourers’ names.
The probe centres on alleged financial irregularities exceeding ₹2,000 crore in the PWD’s construction of 12,748 additional classrooms between 2015 and 2023. The ED claims the project, initially planned for 2,405 classrooms, was arbitrarily expanded to 7,180 and later 12,748 without proper approvals, leading to “gross” cost overruns.
It pointed to “unjustified” use of enriched specifications by contractor Babbar and Babbar Associates, alongside duplicated and inflated works, with cost escalations reaching 49.03% in key phases.
The agency also uncovered “several dummy firms” lacking infrastructure or legitimacy, which received hefty payments for purported construction work. The ACB’s FIR, triggered by a Central Vigilance Commission report, alleges the project’s total cost ballooned to ₹2,892 crore, inflating per-classroom costs to ₹24.86 lakh against a standard estimate of ₹5 lakh. It claims 34 contractors, many allegedly linked to AAP, were awarded the contracts.
BJP leaders, including Kapil Mishra, Harish Khurana, and Neelkant Bakshi, had lodged a 2019 complaint with the ACB, flagging financial discrepancies in the project across three Delhi zones. Sisodia and Jain have been questioned by the ACB, as the ED’s probe intensifies scrutiny of the AAP’s tenure.