Mithi River Scam: ED Probes ₹1,100 Cr Desilting Fraud.

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098

The Enforcement Directorate has launched a probe into alleged ₹65.54 crore misappropriation in Mumbai’s Mithi River desilting project. Involving BMC officials, contractors, and intermediaries, the scam spans two decades and ₹1,100 crore in contracts. The ED may file an ECIR as it verifies financial transactions and contract irregularities.

In a major development flagged by financial watchdogs, the Enforcement Directorate (ED) has launched a preliminary inquiry into alleged irregularities in the Mithi River desilting project. The case, which highlights potential embezzlement and procedural lapses, has seen the ED secure documents from the Mumbai Police’s Special Investigation Team (SIT). An FIR has already been registered at Azad Maidan Police Station against three municipal engineers, five contractors, three intermediaries, and two private firms.

According to the complaint, the misappropriation has led to a staggering loss of ₹65.54 crore to the Brihanmumbai Municipal Corporation (BMC). The case marks yet another critical exposure by the Sprouts News Team, underscoring deep-rooted corruption in civic infrastructure projects.

The Mithi River desilting initiative, active for over two decades, was originally intended to address flood risks and enhance water flow in Mumbai’s major drainage channel. Over ₹1,100 crore worth of contracts were awarded, with 18 contractors engaged over the years. Preliminary findings indicate that many of these entities were subject to prior scrutiny, raising serious questions about BMC’s contract renewal protocols.

The SIT investigation has specifically identified Assistant Engineer Prashant Ramugade, Deputy Chief Engineers Ganesh Bendre and retired official Taishette among the key suspects. Alongside them, directors of firms such as Acute Designing, Kailash Construction Company, NA Construction, Nikhil Construction, and JRS Infrastructure—namely Deepak Mohan, Kishor Menon, Jay Joshi, Ketan Kadam, and Bhupendra Purohit—have been charged under multiple sections of the Indian Penal Code including fraud, forgery, and criminal conspiracy.

ED officials confirmed that the accused orchestrated a criminal conspiracy, directly leading to financial losses for the civic body. While the inquiry is at a preliminary stage, a formal Enforcement Case Information Report (ECIR) will be filed should actionable financial evidence surface.

This development follows ED’s recent pattern of tightening scrutiny on public infrastructure contracts, particularly those managed by municipal corporations. It also mirrors concerns raised in previous investigative reports published by the Sprouts News Team, pointing to systemic governance failures in urban project implementation.

As part of the probe, the Economic Offences Wing has reached out to both BMC and the Mumbai Metropolitan Region Development Authority (MMRDA) to procure detailed contract documentation. Desilting responsibilities along the Mithi River are split: BMC oversees the stretch from Powai to Kurla (11.84 km), while the remaining 6.8 km fall under MMRDA’s jurisdiction.

Investigators revealed that 18 contractors had been engaged across both agencies, out of which five are already named in the FIR. These findings hint at deeper collusion between municipal officials and private contractors, facilitated by weak compliance monitoring and inadequate audit mechanisms.

This case has once again brought urban infrastructure governance under the spotlight. Stakeholders are questioning the accountability mechanisms in civic bodies, especially when large-scale projects involve public funds. Experts in urban planning and civic finance stress the need for third-party audits, transparent bidding processes, and stricter oversight.

The ED’s ongoing involvement signals that financial irregularities in infrastructure projects will no longer be sidelined. As Mumbai continues to face climate-induced urban flooding, the Mithi River’s role in citywide drainage becomes even more critical—underscoring the urgency of clean, corruption-free execution.