The Economic Offences Wing (EOW) of the Mumbai Police has arrested two individuals—Ketan Kadam and Jayesh Joshi—in connection with the alleged ₹65 crore Mithi River desilting scam.
The arrests come a day after the EOW booked 13 people, including three Brihanmumbai Municipal Corporation (BMC) officials, for their alleged involvement in inflating equipment rental costs and manipulating tender processes to favour specific contractors. Kadam, the director of Woder India LLP, and Joshi, associated with Virgo Specialties Pvt Ltd, are accused of acting as intermediaries in the supply of desilting equipment. According to the EOW, they facilitated the rental of silt pusher machines and multipurpose amphibious dredging equipment from Kochi-based Matprop Technical Services Pvt Ltd. The equipment was allegedly rented to the BMC at inflated rates, resulting in significant financial losses for the civic body.
The EOW’s investigation revealed that several BMC documents were found on the accused’s mobile phones, along with entries related to cash received from various contractors and copies of tenders related to the Mithi River desilting work. These findings prompted the EOW to arrest Kadam and Joshi, who were produced before a court and remanded to police custody until May 13. The scam centers around the BMC’s desilting project for the Mithi River, a crucial waterway in Mumbai. The project aimed to remove accumulated silt to prevent flooding and improve the river’s flow. However, the tender process allegedly favored specific equipment suppliers, leading to inflated costs and a loss of ₹65.54 crore to the BMC.
Investigations indicate that BMC officials tailored the tender specifications to benefit Matprop Technical Services, whose director, Dipak Mohan, has also been booked in the case. The tender reportedly specified the use of particular machines, effectively monopolizing the equipment supply to Matprop. Contractors were directed to Joshi and Kadam, who, in collusion with Matprop and contractor Bhupendra Purohit’s Tridev Infrastructure, facilitated the rental of equipment at inflated rates. The BMC’s vigilance department raised concerns about the inflated rates, leading to a reduction to ₹1,609 per metric tonne. However, payments were still made at the higher rates, resulting in a ₹17 crore loss to the civic body. Additionally, the amount of silt removed was reportedly exaggerated on paper to benefit the contractors and officials involved in the scam.
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This incident underscores the need for stringent oversight and transparency in public procurement processes. The BMC’s role in ensuring fair and competitive tendering is crucial to prevent such fraudulent activities and safeguard public funds. The EOW’s ongoing investigation aims to hold all individuals involved accountable and recover the misappropriated funds. As the investigation progresses, the BMC must implement robust measures to enhance transparency and accountability in its operations. Public trust in civic institutions hinges on their ability to manage resources effectively and ethically. The Mithi River desilting scam is a stark reminder of the vulnerabilities in public procurement systems and the critical need for vigilance and reform.
