Latest news with #VirgoSpecialities
Indian Express
4 days ago
- Business
- Indian Express
Mithi river desilting ‘scam': Court says no justification of ‘Rs 2.41 crore as CEO salary', rejects accused's bail plea
In a detailed order rejecting the bail plea of the main accused in the Mithi river desilting 'scam' case, a special court has considered that there was no document to show that the accused was given Rs 2.41 crore as salary as CEO to explain the transfer of money to his personal account. The court had on July 11 rejected bail to Ketan Kadam, the CEO of firm Virgo Specialities. The Mumbai Police had claimed that Kadam entered into a contract with a company — Maptrop Technical Services — which supplied machines in a manner which compelled contractors carrying out desilting of the river to hire the machines at an inflated rate, causing wrongful loss to the civic body Brihanmumbai Municipal Corporation (BMC). 'It appears from statement of Bhushan Salunke and ledger accounts statement of M/s. Virgo that the said company had transferred Rs 6 crores for purchase of the machines to MAPTROP Ltd. and out of that, Rs.2,41,20,000/- has been transferred in the personal account of the applicant (Kadam). Even though the Advocate for the applicant submitted that said amount is salary of the applicant as CEO, however there is no document for such justification for receiving such huge salary. Even there is no document showing that, how much monthly salary was agreed to be given by Virgo to the applicant,' special judge N G Shukla said in the order, which was made available on Tuesday. The case against Kadam and others including BMC officials is that while tenders were issued for desilting of the Mithi river from 2019 to 2024, conditions were inserted in the terms of agreement to compel contractors to hire machines from the company linked to Kadam. He denied this, claiming that contractors were free to purchase machines from other companies as per the tender documents. One of the allegations against Kadam is that he incurred expenses of flight tickets and lodging of three BMC officials from his bank account for visits to Delhi for demonstration of the machines, as was submitted by additional public prosecutor Chaitrali Panshikar. 'If applicant would have acted merely as an employee, he had no reason to spent money from his personal account on flight tickets and hotel expenses of BMC officers prior to execution of tripartite agreement (MOU) and Agreement of Hire with the contractors. This clearly shows involvement of applicant as a conspirator in setting terms and conditions of the tenders in a manner of compelling the contractors to hire the machines from Virgo. There was preplan of applicant to purchase machines by setting the terms of tenders, therefore, he has incurred said expenses,' the court said, referring to the agreement which said that the supplier can only rent machines from Virgo. Kadam had referred to terms and conditions, claiming no such compulsion to hire was imposed. The court also said that prima facie, there is proof that Kadam had personally gained from the contractors through shell companies, calling him the key person in the conspiracy who acted as intermediary with the BMC. 'Investigation is still in progress and statements of number of the witnesses, including the high ranking BMC officers, are yet to be recorded. Considering influencing personality of applicant, if released on bail, he may influence witnesses and create hurdle in investigation,' the court said. The Enforcement Directorate has also this week sought permission to record Kadam's statement in jail in connection with its own probe into the case.
Time of India
11-06-2025
- Business
- Time of India
Lack of proof, procedural lapses: Mithi scam accused's bail order
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. Tired of too many ads? go ad free now 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. Tired of too many ads? go ad free now 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.
Time of India
26-05-2025
- Business
- Time of India
Bail pleas of two held in Mithi desilting scam case rejected
Mumbai: A magistrate's court has rejected the bail plea of two middlemen arrested in the Mithi River desilting scam case, observing that more than Rs 65 crore is involved and wrongful loss was caused to the govt and public at large due to the act of the accused. Tired of too many ads? go ad free now Earlier this month, the police's Economic Offences Wing arrested Ketan Kadam, director of Woder India LLP, and Jayesh Joshi of Virgo Specialities, who allegedly supplied equipment like silt pusher machines to various contractors assigned to desilting the Mithi river. Rejecting their bail pleas in separate orders, additional chief judicial magistrate Vinod Patil said, "It is the case of the prosecution that the accused, by using his influence and maintaining good terms with officers of the municipal corporation, caused loss... and grabbed some amounts... If the present accused is released on bail, the possibility of causing a hurdle in the investigation cannot be ruled out." BMC officers — Prashant Tayshete, deputy chief engineer of stormwater drains dept (Operation & Maintenance) and Prashant Ramugade, deputy chief engineer of Mithi River Development Project — have moved the sessions court seeking anticipatory bail. It is the case of the prosecution that Joshi is the mastermind and he used his influence on the officers. Seeking bail, Kadam's lawyer submitted that since the prosecution's case relies solely on documentary evidence, his custody is not warranted. It was also submitted that he did not receive a single rupee and is neither a director nor a partner in Virgo or Woder. The lawyer claimed that Kadam was made a scapegoat. Joshi submitted that he neither received any illegal gains, nor did he or his company receive extra margin, as alleged by the prosecution. Tired of too many ads? go ad free now The prosecution alleged that he used "undue influence" and "contacts" with MCGM officers to interfere with the tender process, even incurring expenses for their tours to Delhi. It was contended that Joshi influenced the modification of tender conditions to favour the inclusion of specific machines, thereby causing wrongful loss to the govt and the public at large.
