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Indian Express
3 days ago
- Indian Express
ED conducts searches in 15 places in multi-crore Mithi River desilting scam
The Enforcement Directorate (ED) on Friday launched a massive search operation in Mumbai and Kochi in Kerala in the alleged multi-crore Mithi River desilting scam in the Brihanmumbai Municipal Corporation (BMC). The searches are being held at more than 15 locations, including the residences and offices of the 13 BMC officers, contractors, and middlemen named as accused in the FIR filed by the Economic Offences Wing (EOW) of the Mumbai police last month. An agency source confirmed the development to The Indian Express. Besides Mumbai, search operations are also being held in Kerala, as one of the companies that provided the desilting machinery, Matprop Technical Services Pvt Ltd, is based in Kochi. The EOW had booked the 13 accused for causing wrongful loss to the civic body worth more than Rs 65.54 crore in the alleged scam. Based on the EOW's predicate offence, the ED last month registered an Enforcement Case Information Report (ECIR) and began a money laundering investigation. Last month, the Special Investigation Team (SIT) under the EOW had booked 13 people, including five private contractors, three BMC officials, three middlemen, and two private company officials, for causing wrongful loss to the civic body worth more than Rs 65.54 crore in the alleged scam. Desilting work contracts worth nearly Rs 1,100 crore are under the scanner. Mithi River is an 18.64-km seasonal river with residential slum pockets and industrial patches alongside it. It plays the role of a natural stormwater drainage channel for Mumbai, carrying excess water during the monsoon. But, over the years, it has been used by residents to dump garbage, sewage, and industrial waste, polluting it to a significant level. After the 2005 Mumbai floods, the authorities realised the issues with the Mithi River, and the government put in efforts to clean the sludge from the riverbed to ensure uninterrupted water flow. It has been alleged that massive corruption occurred in the desilting work sanctioned and carried out by the BMC. An initial inquiry by the police revealed that various financial irregularities pertaining to contracts for desilting the river were done between 2021-22 and 2022-23. These irregularities were related to the transportation of sludge and its dumping on the ground. Later, EOW found that the contractors had submitted nine fake memoranda of understanding (MoUs). The Mumbai police named BMC assistant engineer Prashant Ramugade, deputy chief engineers Ganesh Bendre and Prashant Tayshette (retired), Deepak Mohan, Kishore Menon, Jay Joshi, Ketan Kadam and Bhupendra Purohit, the directors of Acute Designing, Kailash Construction Company, NA Construction, Nikhil Construction, and JRS Infrastructure, respectively, as the accused. Sources said ED officials are closely scrutinising the financial dealings and transactions related to the desilting work contracts. As per EOW, the accused BMC officers allegedly misused their positions for wrongful financial gains. The FIR further alleges that they conspired to defraud the BMC financially by including terms and conditions as mentioned in the contract agreement regarding the silt pusher machine and the multipurpose amphibious pontoon machine. They allegedly colluded with Mohan Menon of Matprop Company, Jay Joshi of Virgo Specialties, Ketan Kadam and other partners and directors of Vodar India LLP, and contractor Bhupendra Purohit, among others. 'The accused BMC officer of the Storm Water Drains (SWD) division of the Municipal Corporation, without verifying the authenticity of the dumping sites mentioned in the false and fabricated MOU submitted by the directors of the contractor companies Acute Designs, Kailash Construction Company, N A Construction, Nikhil Construction Company, JRS Infrastructure and others, provided and helped contractors take disadvantage,' the EOW FIR stated. Also, the FIR added that officials of the SWD division caused financial loss to the BMC by approving bills based on fake documents related to the weighbridge and log sheets. The SIT under EOW has already arrested two middlemen – Ketan Kadam and Jay Joshi – in the case. Joshi is the owner of Virgo Specialties Pvt Ltd, and Kadam is from Vodar India LLP. EOW officials seized electronic devices from Kadam and copies of posting orders of officials in the BMC's SWD department. Later, the EOW also questioned actor Dino Morea and his brother twice in the alleged scam after it was revealed that they were very close to middleman Kadam and had known him for the last 25 years. A few transactions from Kadam to Morea's account raised suspicion and prompted EOW to summon the actor.
Time of India
5 days ago
- Business
- Time of India
‘Substantial evidence': ED opposes bail for ex-min Mahesh Joshi in JJM scam
Jaipur: The Enforcement Directorate (ED) Tuesday opposed the bail plea of former public health engineering department (PHED) minister Mahesh Joshi, who is currently in jail in connection with the multi-crore Jal Jeevan Mission (JJM) scam. At a hearing in a special court for cases under the Prevention of Money Laundering Act (PMLA), the ED submitted that it had substantial evidence against Joshi, alleging that the proceeds of the crime were funnelled into a company owned by his son. The court will hear the matter on Thursday. On May 27, Joshi's counsel senior advocate Vivek Raj Bajwa had contended in the court that the former minister was not named in the initial FIR lodged by the anti-corruption bureau (ACB) and argued that the ED failed to trace any proceeds of the crime back to him. Bajwa had argued that Joshi was being falsely implicated due to political rivalry. In response, ED's lawyer Ajatshatru S Mina Tuesday pointed to the four FIRs filed in the case by various govt investigation agencies, including one each by the Jaipur police and the Central Bureau of Investigation (CBI), and two by the ACB. Mina told court that Joshi was named in one of these FIRs, which formed the basis of ED's enforcement case information report (ECIR). Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Provence-alpes-cote-d'azur: Voici l'astuce pour avoir des panneaux solaires sans payer l'installation ! Programme Ecologique Undo He elaborated on Joshi's alleged role in facilitating the approval of fraudulent bills for Shree Ganpati Tubewell Co and Shree Shyam Tubewell Co, and claimed he exerted undue influence on PHED officials to secure tenders based on a forged IRCON certificate. The ED further accused Joshi of directly benefiting from the scam's financial gains, which were reportedly invested in his son's company. Mina alleged that Joshi orchestrated the entire scam through an associate, Sanjay Badaya, and accused the proprietors of both tubewell firms of threatening PHED officials to ensure compliance of their demands, warning them of departmental transfers if they failed to do so. Joshi was arrested on April 24 when he appeared for questioning following a notice from the ED.
Indian Express
6 days ago
- Business
- Indian Express
Gujarat: ED opposes bail of Bahubali Shah in ‘money laundering' case
The Enforcement Directorate (ED) has opposed a plea seeking regular bail, filed by director of Lok Prakashan Ltd, Bahubali Shah, who was arrested in connection with a case of alleged money laundering. The agency, in its submissions filed on May 31 before the Principal District and Sessions Judge, Ahmedabad (Rural), claimed that evidence showed Bahubali 'possessed the proceeds of crime by acquiring IPO (initial Public Offering) shares of NTPC and TCS which were reserved for retail category,' through corporate entities. The ED said that it had come across the evidence while investigating a 2016 complaint filed by the Securities and Exchange Board of India (SEBI) against two corporate entities and their directors and that entities were under investigation. In the complaint by SEBI, M/s Excell Multitech Ltd, M/s Zenet Software Ltd and their directors had been named as accused in cases of alleged 'irregularities' detected in the IPOs. On May 15, the ED raided the offices of Lok Prakashan Ltd -run Gujarat Samachar newspaper in Ahmedabad and arrested Bahubali. He complained of uneasiness and was first moved to V S Hospital and then, on the request of his family, to Zydus Hospital where he was admitted to the ICU. He was granted interim bail by a local court for treatment, on May 16. Bahubali then moved a the regular bail application, which came up for hearing on May 31. The ED submission, accessed by The Indian Express, stated that the aforementioned corporate entities had provided finances to M/s Sugandh Estates and Investments Pvt Ltd (SEIPL), which in turn, opened a large number of fictitious accounts and fraudulently cornered the IPO shares of TCS and NTPC that were meant for retail investors. On the basis of the SEBI complaint, the ED then registered an Enforcement Case Information Report (ECIR) on August 16, 2023 to investigate into the aspect of 'money laundering'. Subsequently, the agency issued summons to the directors of the said corporate entities. In her statement to the ED on November 28, 2023, accused Saryuben H Vora, director of both companies, had shared details of the sources of income of both the firms which had 'cornered the shares of TCS and NTPC'. 'M/s Lok Prakashan Ltd gave Rs15 crore to M/s Zenet Software Ltd and Rs5.86 crore to M/s Excell Multitech Ltd. Further, the court submission further stated that Shreyansbhai S Shah gave Rs3.3 crore to M/s Zenet Software Ltd and Shreyansbhai S Shah HUF gave Rs2.86 crore to M/s Excell Multitech Ltd,' stated the submission by ED. The ED also said that 'the ledger books of the accused corporate entities allegedly revealed that Lok Prakashan Ltd received 6,46,922 shares of NTPC and 13,780 shares of TCS, while Rs10.94 crore were refunded to it by M/s Zenet Software Ltd and Rs4.74 crore were refunded to it by M/s Excell Multitech Ltd via Demand Drafts. Shreyansbhai S Shah (Managing Editor of Gujarat Samachar) received 85,600 shares of NTPC and Rs2.769 crore were refunded to him by M/s Zenet Software Ltd. Further, Shreyansbhai S Shah HUF received Nil shares and Rs2.86 crore were refunded to it by M/s Excell Multitech Ltd.' The ED submission further stated that it sent four summons to Bahubali, the then Managing Director of M/s Lok Prakashan Ltd, between December 27, 2023 and February 21, 2024. Bahubali appeared before the ED on February 28, 2024, and allegedly submitted that Dhiren Vora, associated with the accused companies, and son of Saryuben had approached him and said he would receive financial benefits if he provided funds to him. The ED said that when further documents were sought from Bahubali and summons issued, he allegedly neither submitted the documents, nor appeared before the agency. The ED further sent three summons to Bahubali on March 2, 14 and 28 last year but he allegedly neither appeared nor submitted the documents, 'thereby not cooperating with the PMLA investigation'. After a search was conducted at the premises of Bahubali in Ahmedabad's Satellite area on May 15, this year, his statements were taken wherein he allegedly undertook to submit the sought for documents within the two weeks, the ED said. It further said: '…there are reasons to believe based on material in possession, that Bahubali S Shah is actively involved in acquisition, possession, concealment, and use of proceeds of crime obtained and derived as a result of criminal activity relating to scheduled offences (by acquiring IPO shares of NTPC and TCS which were reserved for retail category) and he is guilty of the offence of money laundering under section 3 of PMLA, and punishable under section 4 of PMLA; hence he was arrested under section 19 of PMLA. The analysis of the material gathered and statements of various persons recorded under section 50 of PMLA clearly points out that Bahubali Shah is guilty of the offence of money laundering. Disclosures made by Bahubali Shah under PMLA, warrant his custodial interrogation.' The ED's submission also stated, 'Further, Bahubali Shah is the son of the founding editor of Gujarat Samachar and a highly influential person having family business running across various sectors including construction, chemical industry, fishing, trade and financial services. Therefore it is possible that Bahubali Shah may influence the witnesses/ other co-accused.' Advocate Devang Vyas, appearing for Bahubali had told The Indian Express that they had sought time to file a reply and the matter had been adjourned till June 10, 2025.
The Hindu
22-05-2025
- Politics
- The Hindu
Tamil Nadu government mulling creation of Anti-Money Laundering Cell
The Tamil Nadu government is considering a proposal to constitute an Anti-Money Laundering Cell to be headed by an officer in the rank of a Superintendent of Police to share information relating to predicate offences with central law-enforcing agencies. According to official sources, the move follows a series of letters sent by the Directorate of Enforcement (ED) to the Director-General of Police, Tamil Nadu, requesting creation of AML cell for sharing information of predicate offences. In one of the communications sent by the Director, ED, to the State DGP, it was mentioned that the request of the agency to set up an AML Cell as a Nodal Agency in the State for sharing of information of the predicate offences for action under the Prevention of Money Laundering Act (PMLA) was pending since 2008. He pointed out the ED had taken up the issue of non-sharing of information of predicate offences registered by Tamil Nadu police on multiple occasions. Though an assurance was given to ED officials a couple of years ago that the Assistant Inspector-General of Police, Law and Order, would act as the nodal officer to share information of predicate offences registered by the State police, no formal order was issued to implement the arrangement. Even in the sand mining case, the ED had alleged that though investigators had requested the Tamil Nadu police to share copies of FIRs relating to illegal sand mining, there was no response from the latter. FATF guidelines An ED official said the request to form AML cell was only in compliance with the guidelines recommended by Financial Action Task Force (FATF), an inter-governmental policy-making body that sets international standards with an aim to prevent money laundering, terrorist financing and proliferation of weapons of mass destruction etc. The sources said the DGP had sent a detailed proposal to the Home Department on the request made by the ED to constitute a AML cell and the matter was pending with the government. The ED has a list of scheduled offences which they can take cognizance to open an Enforcement Case Information Report (ECIR) for initiating proceedings under the PMLA.
The Hindu
21-05-2025
- Politics
- The Hindu
Tamil Nadu mulling creation of Anti-Money Laundering Cell
The Tamil Nadu government is considering a proposal to constitute an Anti-Money Laundering Cell to be headed by an officer in the rank of a Superintendent of Police to share information relating to predicate offences with central law-enforcing agencies. According to official sources, the move follows a series of letters sent by the Directorate of Enforcement (ED) to the Director-General of Police, Tamil Nadu, requesting creation of AML cell for sharing information of predicate offences. In one of the communications sent by the Director, ED, to the State DGP, it was mentioned that the request of the agency to set up an AML Cell as a Nodal Agency in the State for sharing of information of the predicate offences for action under the Prevention of Money Laundering Act (PMLA) was pending since 2008. He pointed out the ED had taken up the issue of non-sharing of information of predicate offences registered by Tamil Nadu police on multiple occasions. Though an assurance was given to ED officials a couple of years ago that the Assistant Inspector-General of Police, Law and Order, would act as the nodal officer to share information of predicate offences registered by the State police, no formal order was issued to implement the arrangement. Even in the sand mining case, the ED had alleged that though investigators had requested the Tamil Nadu police to share copies of FIRs relating to illegal sand mining, there was no response from the latter. FATF guidelines A ED official said the request to form AML cell was only in compliance with the guidelines recommended by Financial Action Task Force (FATF), an inter-governmental policy-making body that sets international standards with an aim to prevent money laundering, terrorist financing and proliferation of weapons of mass destruction etc. The sources said the DGP had sent a detailed proposal to the Home Department on the request made by the ED to constitute a AML cell and the matter was pending with the government. The ED has a list of scheduled offences which they can take cognizance to open an Enforcement Case Information Report (ECIR) for initiating proceedings under the PMLA.
