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Hindustan Times
24-06-2025
- Business
- Hindustan Times
Mithi River fraud: Intermediary Ketan Kadam paid for flight tickets, hotel stay of BMC officers, says court
MUMBAI: The flight tickets and hotel expenses of Brihanmumbai Municipal Corporation (BMC) officers who visited Kerala and Delhi to inspect desilting machines were borne by Ketan Kadam, an alleged intermediary arrested in connection with the Mithi River desilting fraud, the sessions court noted on Saturday while rejecting the anticipatory bail plea of co-accused Prashant Tayshete, a deputy chief engineer at the civic body. Ketan Kadam was arrested in May. (Anshuman Poyrekar/Hindustan Times) According to the detailed order copy, which was made available on Monday, the court said it was unbelievable that a high-ranking civic officer such as Tayshete was not aware of who was bearing the expenses of his official visits and stays in Kerala and Delhi. 'The criminal element of cheating lies here,' observed the court. It added that Tayshete and other BMC officers worked hand-in-glove with Kadam to fix the terms and conditions of the tender for desilting machines so that they would benefit in the future. Tayshete was among three BMC officers booked by the Mumbai police's Economic Offences Wing (EOW) in May for alleged irregularities in contracts awarded for desilting the Mithi River. These irregularities led to a loss of ₹ 65.54 crore for the BMC, the EOW said. Kadam, the chief executive of Mumbai-based industrial product manufacturer Virgo Specialties, and the company's director, Jay Joshi, were arrested for their alleged role as intermediaries in the fraud. They were allegedly involved in charging the BMC inflated rates to rent silt pusher machines and dredging equipment supplied by Kochi-based Matprop Technical Services Pvt Ltd. The BMC's tender was also tailored in such a way that Matprop gained a monopoly over the contracts, according to the EOW. According to the Enforcement Directorate, which has launched a parallel money laundering investigation into the alleged fraud, the evidence prima facie indicated that BMC officers, contractors, intermediaries, Matprop executives and others 'colluded to form a cartel with the intent to manipulate BMC tenders' related to the desilting of Mithi River. While applying for anticipatory bail, Tayshete had submitted that as a deputy chief engineer in the BMC's solid waste management department (SWM), he was never deputed for work related to desilting the Mithi River, which came under the stormwater drains department (SWD). But since he was a mechanical engineer, he was tasked with the inspection of stilt-pushing pontoon machines and multipurpose amphibious pontoon machines when the BMC was looking to award tenders for desilting the Mithi River. Tayshete also argued that he had no reason to see who was paying for his visits to Kerala and Delhi to inspect desilting machines, since he was told that the expenses would be borne by the BMC. He also claimed that he had signed two reports prepared by BMC officers after the site visits with the specifications of the machines to be specified in the tender, which were rejected by the BMC. He said that he was not a signatory on a third report that was eventually approved. However, the special sessions NG Shukla, in an order passed on June 21, said that there was no document to show that Tayshete was working in the SWM department and was not concerned with the SWD department. It also said that parts of a report signed by Tayshete were used to demonstrate to higher civic officials why the use of machines with certain specifications was required. 'The rates were proposed to be increased on the basis of such specification. Hence, the applicant cannot escape from the liability of raising the said rates,' the judge said. The court added that even though Tayshete did not sign the third report that was approved, there was no objection regarding the specifications and rates of the machines in the report. 'Hence, not having [the] signature of [the] applicant on the third report does not prima facie infer that the applicant had no role in inserting the terms and conditions of [the] use of machines of Matprop Technical Services Pvt Ltd only, and increasing the rates and thereby causing wrongful loss to the BMC,' observed the court. Meanwhile, the sessions court on Monday granted Matprop directors Dipak Mohan and Kishore Menon interim protection from arrest. They were among the 13 people booked in the case. It isn't clear why the court did so, as the detailed order copy is yet to be made available. Mohan and Menon's counsel, advocate Paavani Chadha, argued that they were falsely implicated in the case. Their plea said that Matprop had followed due procedures in approaching the relevant officials and carrying out transactions with them. They also argued that they have a proven track record of successfully supplying and maintaining machinery for water restoration projects, adding that an arrest would cause them severe reputational damage and harassment. The duo submitted that they are willing to fully co-operate with the investigation.
Hindustan Times
22-06-2025
- Hindustan Times
Mithi River desilting fraud: Court refuses pre-arrest bail to BMC officer Prashant Tayshete
MUMBAI: A special court on Saturday rejected the anticipatory bail plea of Prashant Tayshete, one of the three Brihanmumbai Municipal Corporation (BMC) officers booked in connection with the alleged irregularities in executing contracts for desilting the Mithi River. The case involves alleged irregularities in executing contracts for desilting the Mithi River. (Raju Shinde/Hindustan Times) Special judge NG Shukla granted Tayshete, who works in the BMC's stormwater drains department, interim protection from arrest for two weeks to allow him to approach the high court for relief. It isn't clear why his anticipatory bail plea was rejected, as the detailed court order is not yet available. Tayshete was one of the 13 people and entities named in the FIR registered by the Mumbai police's Economic Offences Wing (EOW) for allegedly causing a loss of ₹ 65.54 crore to the BMC while executing contracts to desilt the Mithi River between 2013 and 2023. According to the EOW, Tayshete and two other accused BMC officers allegedly tailored the tender for the desilting contracts to benefit Kochi-based Matprop Technical Services Pvt Ltd, resulting in the company's monopoly over the contracts. When the BMC's contractors approached Matprop for desilting equipment, they were directed to approach alleged intermediaries Jay Joshi and Ketan Kadam, according to the EOW. The duo, in connivance with senior Matprop executives, allegedly rented the machines at inflated rates. The accused also allegedly fudged records to increase the amount of silt to be removed from the Mithi River to benefit certain contractors and the rates they were supposed to be paid. Tayshete had moved the court seeking protection from arrest on May 19. His counsel, advocate Vaibhav Punekar, submitted that Tayshete looked after stormwater drainage and was only involved in desilting a minor portion of the river, along with transporting the sludge removed for disposal. Punekar also told the court that Tayshete had no knowledge about the alleged fraud related to renting desilting machines. During his visit to Kerala, he was only tasked with machine demonstration work and submitted a report regarding that, Tayshete claimed in his plea. He was not connected with any forged memorandums of understanding and has not received any money related to the concerned work, the plea said. Requesting pre-arrest bail, Tayshete's lawyer argued that his client was a retired BMC officer who cannot influence any witnesses and tamper with any documents. He added that no case of cheating, forgery or conspiracy can be made out against him. Earlier this month, the court had granted bail to Joshi, saying there is no evidence to show that he was an alleged intermediary involved in compelling contractors to hire machines at inflated rates.
Hindustan Times
06-06-2025
- Business
- Hindustan Times
Mithi River desilting fraud: Court grants bail to intermediary Jay Joshi
MUMBAI: The sessions court on Thursday granted bail to Jay Ashok Joshi, a purported intermediary arrested in connection with alleged irregularities in Mithi river desilting contracts. The detailed court order is not yet available, so it isn't clear why the 49-year-old was granted bail. Additional sessions judge NG Shukla, in his operative order, directed Joshi to be released on executing a personal bond of ₹1 lakh. Joshi was also directed to visit the office of the Mumbai police's Economic Offences Wing (EOW) whenever called and cooperate with the investigation. The court cautioned him not to tamper with or create hurdles in the investigation. Two weeks ago, a metropolitan magistrate court had rejected the bail pleas of Joshi and another intermediary, Ketan Kadam. They were among 13 people, including three Brihanmumbai Municipal Corporation (BMC) officials, booked in connection with the alleged fraud. The case involves alleged financial irregularities, inflated tenders, and corrupt practices linked to desilting work for the Mithi River, which caused the BMC losses worth over ₹65 crore, according to the EOW. Joshi is associated with Virgo Specialties Pvt Ltd, a Mumbai-based industrial product manufacturer, while Kadam is the director of a desilting services company, Woder India LLP. According to the police, the duo were involved in charging the BMC an inflated amount to rent silt pusher machines and dredging equipment supplied by a Kochi-based firm, Matprop Technical Services Pvt Ltd. The police claimed this was done in connivance with Matprop executives and officials from the BMC's storm water drains department (SWD). Matprop's director, Dipak Mohan, who was also booked in the case, has denied that he or his company were involved in the fraud. Last week, the police questioned actor Dino Morea and his younger brother Santino after learning that the latter and Kadam's wife, Punita Kadam, were directors in a private company. The police said that they had found some financial transactions between Punita Kadam and Santino Morea, which were being verified. Later, the police claimed they also found a couple of bank transactions between Dino Morea and Ketan Kadam, who have known each other for around 25 years. The police did not reveal the amounts involved in the transactions and who paid whom.
NDTV
26-05-2025
- NDTV
Mumbai Cops Question Actor Dino Morea In River Cleaning Corruption Case
Mumbai: Actor Dino Morea appeared before the Mumbai Police today for questioning in a corruption case linked to a contract for cleaning Mithi river that runs through Mumbai. According to sources in the Mumbai Police's Economic Offences Wing, the 49-year-old actor and his brother were in touch with Ketan Kadam, a prime accused in the case who was arrested earlier this month. Morea's name came up when the investigators analysed the call records of Ketan Kadam and his co-accused Jai Joshi, the sources said. He and his brother were found to have spoken to Ketan Kadam multiple times over the phone. The actor is being questioned about his links to the accused and if he knew about their dealings. What Is Mithi River Desilting Scam The Economic Offences Wing has alleged irregularities worth Rs 65 crore after officials of the Brihanmumbai Municipal Corporation, a Kerala firm and Ketan Kadam and Jay Joshi -- who rent out silt pusher machines -- joined hands for a contract to desilt Mithi river. It is alleged that a team of BMC officials visited the plant of Matprop, a Kerala-based firm specialising in desilting and dredging machines. BMC later floated tenders with specifications that exactly match Matprop machines. This meant any contractor who applies for the tender would have to buy or hire machines from the Kerala firm. The investigation has revealed that when a BMC official went to Matprop to buy the machines, he was directed to 'middlemen' Ketan Kadam and Jai Joshi, who rent out such machines. They initially asked for Rs 8 crore for a two-year contract to rent out silt pusher machines and multipurpose amphibious pontoon machines. Eventually, an agreement was reached on Rs 4 crore. It is alleged that BMC officials, Matprop representatives, and Kadam and Joshi colluded to hatch and carry out this conspiracy. The desilting rate was also hiked. The normal rate was Rs 1,609 per metric tonne, it was increased to Rs 2,193 per metric tonne for these machines. When the BMC's vigilance department objected, the earlier rate was approved. The officials paid Rs 17 crore to the contractors, the investigation has found. The contractors allegedly generated fake bills for transporting sludge out of Mumbai. A total of 13 persons have been charged in the case. These include Matprop's Dipak Mohan and Kishore Menon. Only two - Kadam and Joshi - have been arrested.
Hindustan Times
23-05-2025
- Business
- Hindustan Times
Mithi River desilting fraud: Bail of 2 intermediaries rejected
Mumbai: An additional chief judicial magistrate court on Thursday rejected the bail pleas of two intermediaries arrested in the Mithi river desilting scam. The detailed court order hadn't been uploaded online at the time of going to press, so it isn't clear why the bail pleas were rejected. According to the police, the two arrested accused, Ketan Kadam and Jay Joshi, charged the Brihanmumbai Municipal Corporation (BMC) an inflated amount to rent silt pusher machines and dredging equipment supplied by a Kochi-based firm, Matprop Technical Services Pvt Ltd. The police claimed this was done in connivance with Matprop executives and officials from the BMC's storm water drains department (SWD). Kadam, 50, is the director of Woder India LLP, a Mumbai-based company that provides desilting services, while Jayesh Joshi, 49, is associated with Virgo Specialties Pvt Ltd, a Mumbai-based industrial product manufacturer. Kadam and Joshi were among 13 people booked by the Economic Offences Wing of the Mumbai police earlier this month in connection with the alleged fraud. The accused include three BMC officials, three intermediaries, five private contractors, and two private company executives. The fraud, according to the police, involves alleged financial irregularities, inflated tenders, and corrupt practices linked to desilting work for the Mithi River, which allegedly led to a loss of ₹65.54 crore for the BMC. Joshi denied the charges in court. His lawyers, Dr Yusuf Iqbal and advocate Zain Shroff from YNA Legal LLP, argued that he was an independent investor and infrastructure equipment provider who legally imported and owned the machines. These machines were leased to various contractors according to private agreements without any direct payment or contractual engagement with the BMC, they claimed. 'The machines were not leased to the BMC. There is no financial gain or wrongful benefit to Joshi from BMC or anybody else. As per the allegations, the actual tender beneficiaries—the contractors—and the officials who are allegedly responsible for the tender irregularities remain untouched and were not even investigated. Our client, a third-party private vendor who supplied machines on rent, is being made a scapegoat and dragged into this alleged scam when he is not even remotely associated with the BMC,' Joshi's lawyers told the court. According to the EOW, here's how the alleged fraud happened: BMC officials visited Kochi in October 2020 to purchase desilting equipment from Matprop. The company allegedly quoted ₹3 crore for silt pusher machines and ₹2 crore for multipurpose amphibious dredging equipment. However, instead of purchasing the machines, the BMC decided to pay the contractors on a per-metric-tonne basis for the silt and dredge removed from the river, officials said. The BMC officials then floated tenders with the same specifications that Matprop's equipment had, so that any contractor would be required to buy or hire only its machines. The BMC's tender, in effect, gave a monopoly to Matprop, which was the only manufacturer of machines with those specifications in the country. The company's director, Dipak Mohan, has also been booked in the case. Then, when the contractors approached Matprop, they were directed to Joshi and Kadam, who, in connivance with Mohan, rented the equipment at inflated rates, according to the police. Every year, to benefit the contractors and BMC officials involved in the scam, the amount of mud removed from the Mithi River was also increased on paper to cheat the civic body, according to the police.
