Renting desilting machines for Mithi river caused Rs 17 crore loss: EOW

Time of India

2 days ago

Mumbai: The Economic Offences Wing (EOW) probing the alleged Rs 62.6 crore Mithi river desilting scam, found that the machinery used for desilting was to be purchased by the BMC but the accused officials allegedly altered the procurement process to facilitate renting arrangements with private firms at inflated rates, causing Rs 17 crore loss on this count, according to the chargesheet.
The EOW is continuing with its probe into the scam involving several BMC officials, contractors, middlemen and private companies who allegedly colluded to manipulate tenders, forged documents, and inflated bills over a decade. The case originated from a complaint filed by police inspector Bilal Ahmed Amiruddin Sheikh of the EOW.
The chargesheet names BMC officials including Prashant Ramugade (assistant engineer, designated officer, storm water department), Ganesh Bendre (deputy chief engineer, Pajwa, east suburbs), and Prashant Taishette (deputy chief engineer, circulation and preservation).
Alongside them, directors of private companies—Jay Joshi (Virgo Specialties Pvt Ltd) and Ketan Kadam (CEO, Woder India LLP)—have been accused of criminal conspiracy and cheating.
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Investigations showed that Virgo Specialties purchased only one Silt Pusher Machine as late as March 28, 2023, while Woder India LLP did not acquire any such machine. Despite this, fraudulent tripartite agreements were executed, misrepresenting facts to BMC authorities, and contractors were coerced into renting non-existent machinery, states the 7,000-page chargesheet filed by the EOW.
The chargesheet details that contractors Bhupendra Purohit and firms such as Acute Design, Kailash Construction Co, N A Construction, Nikhil Construction Company, and J R S Infrastructure forged memoranda of understanding (MOUs) regarding dumping grounds for disposed silt. Probe showed the supposed dumping site owners had no agreements with these contractors, nor was any silt dumped at these sites.
Despite the responsibility of BMC's executive engineers to verify these documents, officials knowingly approved them without verification, resulting in false bills being passed and payments disbursed.
The amount of silt removal per year was deliberately increased by the concerned BMC officials. No scientific investigation was conducted by BMC to determine the actual silt in the Mithi river bed. Taking advantage of this, the officials inflated the quantities and the estimated costs in tenders, thereby benefiting contractors and themselves, causing financial loss to the BMC.
Officials have also annexed the statements of a well-known tour operator and officials of five-star hotels in Delhi and Kerala, where BMC officials visited on a study tour to inspect the machinery.
As per terms, the tour expenses were to be borne by the BMC, but expenses including air tickets were paid by contractors Virgo Specialties Pvt. and Matprop Technical Services Pvt Ltd.
The preliminary investigation revealed that the contractors submitted false documents claiming silt had been removed from the Mithi river. In reality, silt was deposited at sites designated by contractors, which were not verified. The BMC disbursed Rs 45.5 crore to five contractors for desilting works from 2013 to 2021.
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