The special Prevention of Money Laundering Act (PMLA) court has granted the Enforcement Directorate (ED) permission to record the statement of Ketan Kadam, a central figure in the ₹65.54 crore Mithi River desilting scam. This crucial development signals an intensified probe into alleged financial irregularities that have plagued a vital urban environmental project, underscoring the ongoing battle against corruption and the imperative for transparent governance in building sustainable and equitable cities.
Kadam, currently lodged at Arthur Road prison, will be questioned by ED officers between July 28 and August 8. He was initially arrested by the Economic Offences Wing (EOW) for his alleged role in orchestrating a scheme where he, in concert with an alleged intermediary Jay Joshi and certain Brihanmumbai Municipal Corporation (BMC) officers, purportedly coerced a contractor into renting machinery at inflated rates from Virgo Specialties. This alleged manipulation led to substantial financial losses for the civic body, diverting public funds meant for essential urban infrastructure.
The EOW’s earlier investigations also suggested that Kadam had financed official visits for BMC personnel to Kerala and Delhi. These trips were reportedly for observing demonstrations and inspecting specialised equipment, including a stilt pushing pontoon machine and a multipurpose amphibious pontoon machine/Truxor. Such allegations raise serious questions about potential collusion and the misuse of public office, undermining trust in the very institutions tasked with developing and maintaining critical urban infrastructure like the Mithi River.
The legal proceedings have seen conflicting claims regarding Kadam’s exact role. While Kadam, in his plea before the magistrate court, asserted he was merely an official signatory representing his employer and not a director or partner in the implicated firm, Jay Joshi has countered this. Joshi claimed that Kadam, appointed as CEO on May 5, 2020, was at the heart of the machinery rental deal, managing all agreements, transactions, and Memoranda of Understanding. This divergence highlights the complexities inherent in prosecuting white-collar crime and the challenges of establishing culpability.
The Mithi River desilting scam transcends a mere financial irregularity; it represents a betrayal of public trust in a project critical for Mumbai’s environmental resilience and flood mitigation. Ensuring accountability in such cases is paramount for building truly zero net carbon, eco-friendly, and sustainable cities. When funds allocated for vital urban projects are allegedly siphoned off, it directly impacts the city’s ability to protect its citizens, manage its environment, and foster equitable development. The ED’s intensified probe is a crucial step towards ensuring that justice is served and that future urban development is conducted with utmost integrity and transparency.
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