Fake guarantees, real consequences: Contractors busted in MIDC Scam

Chhatrapati Sambhajinagar

Two contractors have been booked for submitting fraudulent bank guarantees to secure tenders in the MIDC office. The case was registered after a complaint from Rameshchandra Giri, Executive Engineer at MIDC.

The accused are Atul Kailas More and Swapnil Madhukar Mhaske. In the year 2023-24, MIDC issued tenders for maintenance work in the Waluj industrial area, totaling Rs 16,11,264. Atul More submitted a bid 29% lower than others and provided a bank guarantee of Rs 5,47,900 from Canara Bank. The guarantee was verified and deemed valid, leading to the assignment of work with a completion deadline of October 9. More also submitted a second tender for Rs 31,48,925 for cleaning roads in the Shendra industrial area, with a 41% lower bid and a bank guarantee of Rs 18,26,400, which was also confirmed by the bank. Meanwhile, Swapnil Mhaske won a third tender for filling potholes and clearing bushes in Waluj with a 29% lower bid and a bank guarantee of Rs 13,40,600. The guarantee was initially confirmed by the bank as well.

On June 28, Vandantnagar Police revealed that the bank guarantees from both contractors were fraudulent. MIDC then contacted Canara Bank, which confirmed the guarantees were fake. Following this, the executive engineer lodged a complaint against More and Mhaske.

After the scam was uncovered, MIDC halted payments for the two tenders awarded to Atul More, and work was stopped. Mhaske completed his work on time, so his payment was processed. However, a proposal was made to blacklist Mhaske from future projects.