The Enforcement Directorate has arrested a retired chief engineer and a contractor in connection with its money laundering probe into alleged irregularities in the tendering process of the Delhi Jal Board, official sources said Thursday.

Jagdish Kumar Arora, a retired chief engineer, and contractor Anil Kumar Aggarwal have been taken into custody under the Prevention of Money Laundering Act (PMLA), the sources said. The federal agency had conducted raids in this case in July last year.

ED is conducting investigation in two separate matters of irregularities in the tendering process of the DJB and its criminal case stems from an FIR of the CBI and from the Anti-Corruption Branch (ACB) of the Delhi government.

The CBI FIR alleged that officials of the DJB gave "undue advantage" to NKG Infrastructure Limited while awarding tender to the company for supply, installation, testing and commissioning of electro-magnetic flow metres in connivance with officials of NBCC (lndia) Limited.

The second allegation pertains to the ACB complaint of November, 2022 where it was stated that DJB awarded a tender for setting up automotive bill payment collection machines (kiosks) in its different offices for facilitating consumers in bill payment.