Firms Caught In Fake Bank Guarantee Still Work In State

Bhopal (Madhya Pradesh): The companies against whom an inquiry is underway in connection with the submission of fake bank guarantees are still working in the state.

The CBI is enquiring against Teerth Gopiconn Company and MP Babariya & Sons for submitting fake bank guarantees for Jal Jeevan Mission work.

There are allegations that both companies had submitted fake guarantees for getting tenders.

Teerth Gopicon submitted a tender worth Rs 184 crore, and Babariya & Sons gave a guarantee worth Rs 128 crore.

The CBI is probing the case after receiving directions from the high court. The probe agency arrested a few bank officers in connection with the case.

Meanwhile, the Jal Jeevan Mission obtained an original bank guarantee, rejecting the fake one, and asked the company to complete the work.

But when the fake bank guarantee case came to light, the state government blacklisted Teerth Gopicon and Babariya & Sons.

Permitting to work during the CBI inquiry by changing the bank guarantees was a major flaw on the part of the Jal Jeevan Mission.

By changing the bank guarantees, the Mission asked the company to do the same work for which it had submitted a fake bank guarantee, and the CBI is probing the case.

The managing director of the Jal Jeevan Mission, VKS Choudhary Kolsani, said because of the fake bank guarantees, the Mission was incurring a loss worth crores of rupees.

The mission asked the companies to complete the ongoing project by submitting original bank guarantees.

Teerth Gopicon declined the offer, and Babariya & Sons accepted it. According to Kolsani, both companies are not allowed to take part in new tenders and remain blacklisted.

They have been told to complete the project to save the losses the mission was incurring, he said.