Mumbai’s Mithi River Scam Deepens: EOW Arrests Two More Contractors in Rs 65.5 Crore Desilting Fraud
The Mumbai Police Economic Offences Wing (EOW) has arrested two more contractors in the ₹65.5 crore Mithi River desilting scam, taking total arrests to five. Contractors Mahesh Purohit and Sunil Upadhyay allegedly submitted forged MoUs, fake bills, and false dumping records for over a decade to claim payments from the BMC. Investigators found that claimed silt disposal sites were either unused or located on government land, exposing systematic civic fraud.
- Mumbai’s Mithi River Scam Deepens: EOW Arrests Two More Contractors in Rs 65.5 Crore Desilting Fraud
- Fresh Arrests in Mumbai’s Major Civic Fraud Case
- Forged Documents and Fictitious Dumping Sites Uncovered
- Police Custody Sought to Unravel Financial Networks
- Anatomy of a Rs 65.5 Crore Storm Water Drain Scam
- Tailor-Made Tenders and Systemic Corruption Exposed
- Previous Arrests and the 7,000-Page Chargesheet
- Ongoing Probe and the Search for Accountability
The Rs 65.5 crore Mithi River desilting scandal widens with two new arrests. Mumbai Police’s Economic Offences Wing detained contractors for submitting forged silt disposal documents. This brings the total arrests in the long-running civic fraud case to five.
Fresh Arrests in Mumbai’s Major Civic Fraud Case
The EOW arrested Mahesh Purohit and Sunil Upadhyay on Wednesday. Purohit is proprietor of M B Brothers, Upadhyay directs SNB Infrastructure Pvt Ltd. They face allegations of fabricating MoUs and bills for a decade. The 47th metropolitan magistrate court remanded them to police custody. Their custody will last until December 16 for intensive questioning.
Forged Documents and Fictitious Dumping Sites Uncovered
Investigators found Purohit secured contracts worth over Rs 23.4 crore. Eight landowners confirmed their signatures on his MoUs were forged. No silt was ever dumped on their private land as claimed. Several alleged dumping sites were actually government or CIDCO land. This points to a blatant paper trail created for fraud.
Senior inspector Pradeep Sawant explained
Upadhyay’s company’s role. “MoUs from 2013 to 2018 were also fabricated,” Sawant stated. Multiple landowners denied signing any agreements with the firm. They had no knowledge of silt disposal happening on their properties.
Police Custody Sought to Unravel Financial Networks
EOW officials sought custody to trace the scandal’s financial flows. They aim to recover original forged documents from the accused. Determining the method of document creation is a key priority. Identifying other conspirators and victims is also crucial. The custody plea was granted by the metropolitan magistrate court.
Anatomy of a Rs 65.5 Crore Storm Water Drain Scam
The case originated from a complaint by EOW inspector Bilal Sheikh. It alleged a collusion between BMC officials and contractors. The scam involved manipulating tender conditions for personal gain. Fabricated dumping ground documents were submitted for payments. Forged log sheets and VTS reports completed the fraudulent cycle.
Also Read: Mumbai MHADA Housing Scam: EOW Arrests Key Accused.
Tailor-Made Tenders and Systemic Corruption Exposed
The investigation revealed senior civic engineers were involved. An assistant chief engineer and deputy chief engineer are named. Private firms like Virgo Specialties Pvt Ltd are also implicated. Tailor-made tender conditions in 2021-22 benefited specific contractors. This caused an initial loss of nearly Rs 17.1 crore to the BMC.
Further scrutiny uncovered a longer pattern of fraud. From 2013 to 2023, forged documentation was the norm. Contractors and officials caused a wrongful loss of Rs 45.5 crore. This brings the total Mithi River desilting scam value to Rs 65.5 crore.
Previous Arrests and the 7,000-Page Chargesheet
The EOW had earlier arrested alleged key accused Ketan Kadam. Jay Joshi, director of Virgo Specialties, was also arrested. A sessions court recently granted Kadam two-week interim bail. This was to visit his ailing mother, temporarily pausing his custody.
In August, the EOW filed a massive 7,000-page chargesheet. It accused Kadam and Joshi of conspiring with BMC officials. Their goal was ensuring a specific contractor won the desilting contract. They allegedly collected Rs 9 crore as commission for this favour.
Ongoing Probe and the Search for Accountability
Contractor Shersingh Rathor was arrested in the same month. He was accused of submitting fake bills and agreements. His actions allegedly caused a BMC loss exceeding Rs 29 crore. The Sprouts News Special Investigation Team notes the probe’s expanding scope. Each arrest reveals deeper layers of alleged corruption in civic projects.
The EOW continues investigating the financial trail and all beneficiaries. The focus remains on recovering public funds lost in the scandal. This case highlights systemic vulnerabilities in municipal contract management. It underscores the need for stringent oversight in urban infrastructure projects.
The Mithi River scam investigation continues as police trace the money. More arrests and revelations are expected in the coming weeks. The case has become a benchmark for probing civic contract fraud. It underscores the challenges in securing accountability for public funds.
