₹1,500 Crore Scam in Maharashtra’s Social Justice Department
• Blacklisted Firms Get Govt Tenders Again!
• Minister Sanjay Shirsat Under Fire for Tender Fraud
• Same 3 Companies, 10 Years, No Competition
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
A ₹1,500 crore scam has rocked Maharashtra’s Social Justice Department, with Minister Sanjay Shirsat accused of awarding tenders to ED-probed firms. Activist Vijay Kumbhar exposed irregularities in wages, service charges, and bid favoritism. Sprouts SIT calls for immediate cancellation, multi-agency probe, and structural reforms in the department’s procurement system.
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A massive scam worth ₹1,500 crore has surfaced in the Maharashtra Social Justice Department, allegedly involving rigged tenders and favoritism toward blacklisted companies. Minister Sanjay Shirsat, representing the Shinde-Fadnavis government, is under fire for awarding contracts to firms that were earlier barred due to ongoing ED investigations. The scam is linked to mechanical cleaning and manpower outsourcing tenders floated by the department.
Social activist Vijay Kumbhar has exposed key documents, accusing Minister Shirsat of bypassing previous directives issued by CM Devendra Fadnavis. Fadnavis had earlier instructed officials to blacklist Brisk India (now renamed Smart Services- The company is allegedly linked to minister Hasan Mushrif.) due to Enforcement Directorate (ED) investigations. However, under Shirsat’s leadership, the same company was declared eligible and awarded contracts under Tender No. 374.
Kumbhar has demanded that the tender process be scrapped immediately, citing gross irregularities and legal violations. The Sprouts News Investigation Team (SIT) has verified that Smart Services, BVG India (Hanmant Ramdas Gaikwad) and Krystal Integrated Services (Prasad Lad) were all awarded contracts despite past concerns.
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Social Justice Department: ₹1,500 Crore Tender Lacks Transparency in Wage & Cost Structure
Service charges fixed at 19.5% without role-based wage details
One of the most glaring red flags in Tender No. 374 is the absence of any role-wise salary structure, despite the involvement of over 3,600 contractual workers for six years. There is no detailed financial breakdown in the tender documents specifying how much will be paid per post, creating a significant scope for manipulation.
Instead, decisions have been made entirely on the basis of service charges, with each of the three shortlisted companies guaranteed 19.5% service charge. This standardization, without competitive variation, not only raises suspicion of cartel-like behavior but is also being termed illegal by experts. Kumbhar has submitted a memorandum to Devendra Fadnavis demanding the cancellation of the tender.
Sprouts SIT notes that awarding a multiyear contract without defining cost per employee or job role creates a massive opportunity for financial misuse. Moreover, the fact that a company under ED lens was declared eligible further deepens the trust deficit in public procurement.
Repeat Contractors Raise Red Flags Over Monopoly & Bid Rigging
Same firms cornered all major contracts over the last decade
Another serious concern flagged by Kumbhar and now under SIT lens is the repeated awarding of contracts to the same three firms — Smart Services (Brisk India), BVG India, and Crystal Integrated Services — over the last 10 years. No fresh tenders were floated during this period, allowing these firms to continue operations unchallenged.
Kumbhar alleges that even the new tender is designed to favor the same players, enabling perpetual monopoly and possible rigging of the bidding process. A payment of nearly ₹1,500 crore has already been made based on earlier contracts, without transparent bidding or performance evaluation.
Sprouts SIT has learned that no new vendors, self-help groups, or youth cooperatives were allowed entry into the tender process, violating procurement principles and government norms. Kumbhar has urged the state to implement district-wise tendering and promote participation from women and youth-led organizations, which aligns with inclusive development goals.
Also Read: CBI Probe Sparks ₹174 Crore Bribery FIR Against Megha Engineering.
Kumbhar Demands Immediate Action, SIT Calls for Multi-Agency Probe
Kumbhar’s demands include immediate cancellation of the ₹1,500 crore tender, blacklisting of ring-forming companies, and an independent inquiry into 13 years of irregular, non-tendered contracts. He also calls for structural reforms in the Social Justice Department’s tendering process to curb monopoly and encourage transparent bidding.
Sprouts SIT recommends that this matter be investigated jointly by the ED, ACB, and Comptroller & Auditor General (CAG) to ensure full accountability. Given the scale of the alleged scam, the role of ministerial discretion in overriding blacklists must also be probed under relevant sections of the Prevention of Corruption Act.
Despite multiple efforts by Sprouts SIT to contact Minister Sanjay Shirsat and the department’s senior officials for clarification, no official response was received by the time of publishing. Public procurement experts believe the incident could become a test case for the application of anti-cartelization and clean tendering practices in social sector schemes.
Sprouts SIT Action Points:
•Cancel Tender No. 374 immediately.
•Investigate ED-probed firms allowed to bid despite blacklist.
•Promote district-wise tenders and local employment initiatives.
•Probe non-tender payments made over a decade.
•Ensure role-wise wage transparency in all manpower tenders.
