Lack of proof, procedural lapses: Mithi scam accused's bail order

Time of India

a day ago

Mumbai: In a detailed order granting bail to Jay Joshi of Virgo Specialities, accused in Rs 65 crore Mithi River desilting scam, a sessions court cited lack of direct evidence linking him to the alleged conspiracy and a failure by the Economic Offences Wing (EOW) to comply with arrest procedures.
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Ketan Kadam, director of Woder India LLP, and
, who allegedly supplied equipment like silt pusher machines to various contractors assigned to desilting the Mithi River, were both arrested on May 6 this year. While Joshi was granted bail on June 5, Kadam is yet to move the sessions court for bail.
In a detailed order made available on Wednesday, the judge said that the material on record shows that instead of Joshi, Kadam dealt with the transactions on behalf of M/s Virgo Specialties Pvt Ltd.
"Hence, prima facie it appears that there is no material showing that the applicant compelled contractors or bidders to hire the machines on rent and caused wrongful loss to BMC," judge NG Shukla said. Also, stating that prima facie there was no material showing his role in the conspiracy, the judge said that a copy of the resolution appointing Kadam as CEO and statements of witnesses show that it was Kadam who dealt with them for hiring the machines.
"Considering the agreement signed by Ketan Kadam and dealing with the contractors to hire the machines by him, there is no role of the applicant (Joshi) as a director in compelling the directors of contractor companies to hire the machines. In the absence of such a specific role as a director of the company, there is no strong reason to deny bail to the applicant," the judge said. The judge also said that the charge of criminal breach of trust is not made out against Joshi.
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The judge also referred to rulings which emphasised that written communication of arrest grounds to both the accused and their nominated contacts is crucial, and failure to do so can render the arrest illegal.
The charges against Joshi include Sections 406 (criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant, or agent), and 420 (cheating and dishonestly, etc.) of the Indian Penal Code. According to the FIR, the BMC awarded contracts for desilting the Mithi River between 2019 and 2024. It is alleged that Joshi, along with other co-accused, including directors of contractor companies and BMC officials, conspired to alter tender terms.
These altered terms allegedly mandated the use of specific machines for waste removal from the river.