Mumbai: The Enforcement Directorate (ED) has frozen assets worth over Rs 47 crore after conducting search operations at eight locations across Mumbai in connection with the ongoing probe into the Rs 65-crore Mithi River desilting scam ,the central agency said on Saturday.
BMC Contractors and Senior Engineer Under Lens
The searches, carried out on July 31 under the Prevention of Money Laundering Act (PMLA), were conducted at premises linked to BMC contractors M/s Acute Designs, M/s Kailash Construction Company, M/s Nikhil Construction Co, M/s N A Construction Pvt Ltd, and M/s J.R.S Infrastructure and and BMC’s Deputy Chief Engineer Prashant Krishna Tayshete.
With the latest action, the total value of proceeds of crime seized and frozen in the case now stands at approximately Rs 49.8 crore.
According to officials, the federal agency's action led to the seizure of several incriminating documents, digital devices, and records of suspicious immovable property transactions, which are now under scrutiny.
The ED initiated its investigation following a case registered at Azad Maidan Police Station, Mumbai, under various sections of the Indian Penal Code (IPC) against 13 individuals and entities, including those mentioned above, for allegedly causing a wrongful loss of over Rs 65 crore to the Brihanmumbai Municipal Corporation (BMC).
Scam Involved Forged MoUs and Fake NOCs
Evidence gathered during the course of the investigation and search operations has revealed irregularities in the Mithi River desilting contracts. According to the Enforcement Directorate, contractors allegedly colluded with officials of the Brihanmumbai Municipal Corporation’s (BMC) Storm Water Drainage (SWD) department to submit forged documents, including fake Memorandums of Understanding (MoUs) from landowners and No Objection Certificates (NoCs) from gram panchayats, for lands purportedly used for silt dumping.
Machinery Procurement Manipulated for Kickbacks
The probe has further revealed that certain BMC officials misused their official positions for personal financial gain by manipulating the procurement process. Specifically, expensive machinery such as silt pushers and multipurpose amphibious pontoon machines were allegedly included in the 2021–2022 tenders to benefit select contractors.
