The Enforcement Directorate has frozen bank and demat accounts worth approximately Rs 6 crore linked to five contractors and a Brihanmumbai Municipal Corporation (BMC) engineer, following search operations conducted as part of its ongoing investigation into an alleged desilting scam involving Mumbai’s Mithi River.
On Thursday,ED conducted coordinated searches at eight locations linked to five contractors and a Deputy Chief Engineer from the BMC’s Storm Water Drains (SWD) Department.The operation resulted in the seizure of documents related to multiple bank accounts, demat holdings, high-value financial transactions, and immovable assets. Several of these accounts have been frozen. ED officials said that transaction histories are now being examined to trace fund flows during the period when the scam was allegedly executed. Property-related documents seized from the alleged accused are also under scrutiny for potential links to benami holdings or kickbacks.
The contractors under investigation have been identified as Acute Designs, Kailas Construction Company, N.A. Construction, Nikhil Construction Company, and JRS Infrastructure. According to ED sources, these firms allegedly submitted forged documents, including nine fake memorandums of understanding (MoUs) pertaining to sludge dumping sites. These documents were purportedly used to falsely claim payments for silt transportation and dumping work that was never executed.
The probe has revealed that the contractors submitted fabricated weighbridge receipts and manipulated log sheets to support their claims. These were allegedly approved by BMC officials without proper verification. The SWD department marked the work as complete and sanctioned payments amounting to Rs 45.5 crore between 2013 and 2021.
One of the key individuals under the ED’s scanner is Tayshette, Deputy Chief Engineer (Stormwater Drainage Projects), whose premises were among those searched on Thursday. During the raid, the agency seized several incriminating documents, including bank records. Officials said the transaction histories are being closely analysed to trace the flow of funds during the period in which the scam is believed to have been carried out.
Tayshette was part of an official delegation that visited Kerala and Delhi between September 25 and 28, 2020, to inspect specialized equipment such as the Silt Pusher Machine and Multi-purpose Amphibious Pontoon Machine (TUXOR). The delegation also included civic officials Ganesh Bendre and Shant Ramugade, who are also under the scanner in the ongoing investigation.
According to ED sources, Tayshette is accused of misusing his official position and colluding with private contractors and firms such as Matprop, Vargo Specialty Pvt Ltd, and Hodder India LLP to grant them undue benefits. The ED probe has revealed that Tayshette and other officials allegedly manipulated tender conditions to specifically require machinery that was available only with these selected vendors. This effectively ensured that no other bidders could qualify.
Tayshette, in alleged collusion with others, is believed to have caused substantial financial loss to the municipal body by enabling this selective and manipulated tendering process.
Meanwhile, the Economic Offences Wing (EOW) of the Mumbai Police on Friday filed a 7,000-page chargesheet in the Mithi River desilting scam. The chargesheet names two arrested accused — Ketan Kadam and Jay Joshi — and lists 11 others as wanted. Statements from 15 witnesses have been recorded. The court is yet to take cognizance of the chargesheet.
