ED Conducts Searches At 8 Locations In Mithi River Desilting Scam

Mumbai: The Enforcement Directorate (ED) on Thursday carried out search operations at eight locations linked to five contractors in connection with the alleged Mithi River desilting scam. The searches were conducted at both residential and official premises of the contractors, who are accused of submitting forged documents, including memorandums of understanding (MoUs), to the Brihanmumbai Municipal Corporation (BMC) to falsely claim payment for silt transportation and dumping work.

BMC Released ₹45.5 Crore Despite No Dumping At Designated Sites

Sources said that all five contractors allegedly submitted false MoUs and supporting documents to claim that the silt removed during desilting operations had been transported and dumped at designated sites. However, investigations revealed that the dumping either did not take place or was carried out in violation of municipal norms. Despite this, the BMC’s Storm Water Drains (SWD) department recorded the work as completed and released payments totalling Rs 45.5 crore to the contractors between 2013 and 2021.

Contractors Accused Of Using Forged MoUs To Claim Silt Dumping Payments

The ED action is based on findings by the Economic Offences Wing (EOW) of the Mumbai Police, which identified the five contractors as Acute Designs, Kailas Construction Company, N.A. Construction, Nikhil Construction Company, and JRS Infrastructure. The contractors allegedly submitted nine forged MoUs related to sludge dumping sites. Investigations also revealed that BMC officials approved contractor bills based on fake weighbridge receipts and falsified log sheets, without verifying the authenticity of the submitted documents.

MoUs Contained Forged Signatures, Lacked Dates Or Contractor Details

Investigators found that the MoUs were purportedly signed by landowners and accompanied by 7/12 land extracts and no-objection certificates (NOCs) from gram panchayats. These documents were allegedly accepted by the SWD department without verification. Several MoUs bore forged signatures, some lacked contractor signatures, and others were undated.

Landowners Deny Agreements, Say No Silt Was Ever Dumped

Multiple landowners later denied signing any such agreements and confirmed that no silt was ever dumped on their properties. Despite these discrepancies, the documents were cleared by BMC executive engineers, allegedly to avoid cancellation of the contractors’ bids, pointing to possible collusion.

BMC Engineers Cleared Fake Bills Without Verification, Pointing To Collusion

Investigation revealed that no actual dumping was carried out at the claimed sites. Nonetheless, the SWD Department falsely recorded completion of the work and released Rs 45.5 crore in payments to the contractors, causing significant loss to the civic body and resulting in undue financial gains to the accused.

ED Probes Shell Firms Used To Route Scam Money

The ED is now tracking the money trail to identify assets suspected to have been acquired through the proceeds of the alleged scam. According to officials, several shell companies were likely floated to route laundered funds. These entities are under scrutiny for suspicious financial transactions linked to inflated or fraudulent bills.

13 Accused Booked By EOW In May For ₹65.5 Crore Loss To BMC

In May, the EOW booked 13 individuals in the case five private contractors, three BMC officials, three middlemen, and two private company representatives for allegedly causing a wrongful loss of over Rs 65.54 crore to the civic body in the alleged scam. Contracts worth nearly Rs 1,100 crore related to desilting work are under investigation.

The Mithi River, an 18.64-km seasonal river, was identified as a flood risk after the 2005 Mumbai floods. Subsequently, authorities undertook efforts to clear sludge from the riverbed to ensure unobstructed water flow. However, it has been alleged that massive corruption occurred in the desilting work sanctioned and carried out by the BMC.

₹65 Crore Mithi River Desilting Scam: ED Gets PMLA Court Nod To Record Accused Ketan Kadam’s Statement In Arthur Road Jail

Sources said the ED is probing the involvement of shell companies allegedly used to route funds linked to fake desilting claims. Large sums are suspected to have been siphoned off through forged documents and inflated bills.