Directorate of Enforcement (ED), Delhi Zonal Office has conducted search operations
on 18.06.2025 at 37 locations across Delhi, under the provisions of the Prevention of Money Laundering Act
(PMLA), 2002 in “Delhi Classroom Construction Scam”.
ED initiated investigation on the basis of FIR registered by the Anti-Corruption Branch, GNCTD,
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 Public Works Department, Government of NCT of Delhi,
between 2015 and 2023. Despite an initial requirement for 2,405 classrooms, the project scope
was arbitrarily increased to 7,180 Equivalent Classrooms, and subsequently to 12,748 rooms without proper
sanction or approvals resulting in massive cost escalations. Further there was unjustified adoption of richer
specifications proposed by M/s. Babbar & Babbar Associates, and execution of duplicate and inflated works.
Cost escalations of up to 49.03% were observed across Priority-I and Priority-II phases.
During the course of the searches, ED unearthed a substantial incriminating evidence from the
premises of a private contractors. Among the materials seized were original departmental files belonging to
the Government of National Capital Territory of Delhi, as well as rubber stamps bearing the names and
designations of officials from the Public Works Department (PWD).
ED also recovered 322 bank passbooks linked to mule accounts opened in the names of labourers
used to divert government funds under the guise of legitimate transactions. Furthermore, forged letterheads
of various private contractors and shell entities, which were used to generate fake procurement records and
fictitious purchase bills, were found and seized.
Evidences relating to fake invoices submitted to GNCTD departments, showing inflated or entirely
bogus claims was found and seized. Several dummy firms have been found during the search which were
having no real infrastructure, documentation, or operational legitimacy, but were shown to have received
substantial payments for construction activities relating to the Additional Classrooms. Additionally,
substantial incriminating documents and digital evidences have been recovered and seized during the
search.
