New Delhi: The investigation into the alleged ₹1,943-crore tender scam involving sewage treatment plants (STPs) of the Delhi Jal Board (DJB) has intensified. The Rouse Avenue Court has issued production warrants against former DJB Chief Executive Officer (CEO) Udit Prakash Rai and Nagendra Yadav, directing that both be produced before the court on August 29. Both are currently in judicial custody. The case is being investigated by the Anti-Corruption Branch (ACB). Former Delhi minister Satyender Jain has also been named in connection with the alleged scam.
Duty Judge Neha Paliwal Sharma issued the production warrants following an application filed by the ACB. The agency is examining alleged irregularities in the tendering process, links between public officials and private entities, and suspicious financial transactions connected with the contracts.
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Ten STPs Divided into Four Packages
The case relates to tenders issued for the augmentation and upgradation of 10 sewage treatment plants across Delhi. The FIR was registered on the basis of a vigilance reference dated May 10, 2024, from the Directorate of Vigilance, Government of the National Capital Territory of Delhi.
According to the allegations being investigated, the 10 STPs were divided into four packages, with a combined tender value of approximately ₹1,943 crore.
The ACB has alleged that certain DJB officials conspired with private contractors, technology providers and intermediaries to influence tender conditions. Investigators have alleged that cost estimates were inflated and environmental standards were diluted to facilitate the award of contracts to selected companies or a particular cartel. The alleged manipulation is being examined for its potential impact on the public exchequer and the gains made by private entities.
Pankaj Verma Sent to Judicial Custody Till September 3
Pankaj Verma, proprietor of Srijanhar Enterprises and another accused in the case, was also arrested in connection with the investigation. After completing two days of police custody, he was remanded to judicial custody until September 3.
The ACB told the court that Verma’s interrogation was necessary to determine the purpose for which Srijanhar Enterprises was allegedly brought into the transaction structure and to examine its business dealings.
The agency is also examining the agreement between Srijanhar Enterprises and Eurotech concerning marketed products, as well as an alleged loan provided by Srijanhar to Dhanvine Engineering.
₹1.22 Crore Transfer Under Investigation
A financial transaction involving approximately ₹1.22 crore has emerged as another important aspect of the investigation. According to the ACB, Dhanvine Engineering received the amount from Eurotech through Srijanhar Enterprises.
Investigators are also examining the alleged transfer of ₹81 lakh from Dhanvine Engineering to Vinod Chauhan and another transfer of ₹43 lakh from Dhanvine to a firm linked to Nagendra Yadav.
The ACB has argued that the purpose and utilisation of these transactions need to be established. The agency is also seeking to determine the actual financial loss suffered by the government and identify the officials and private parties allegedly involved in the conspiracy.
Defence Disputes the Allegations
Counsel representing Pankaj Verma opposed the request for police custody and argued that neither Verma nor Srijanhar Enterprises was individually named in the original FIR.
The defence maintained that Srijanhar had a valid agreement with Eurotech and that Verma personally provided technical supervision at the STP sites. It also argued that the company’s regular business expenses, including salaries and labour payments, exceeded the amount allegedly misappropriated.
The defence further described the ₹1.22-crore transfer as a legitimate, interest-free and unsecured director’s loan, which had been disclosed in Dhanvine Engineering’s financial statements and was used for routine business purposes.
Probe May Expand Further
The ACB is now examining the tendering process, business agreements between the companies, communications involving officials and private entities, and the flow of funds connected with the projects.
The agency has indicated that custodial questioning could help establish the roles of other individuals, determine the actual financial loss to the government and trace the financial transactions linked to the alleged conspiracy.
The production of Udit Rai and Nagendra Yadav before the court on August 29 is expected to be significant for the ongoing investigation. However, the allegations remain subject to investigation and judicial proceedings, and the final culpability of the accused will be determined on the basis of evidence and due process of law.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
