EOW says it uncovered nine fake MoUs; raids held on premises of civic babus, middlemen embroiled in case. The case involves fraudulent payments and forged documents, resulting in an estimated financial loss of over R65.54 crore to the BMC
DCP Sangramsinh Nishandar (centre) addresses a press conference on the alleged scam at Mumbai police commissioner’s headquarters on May 6. Pic/Shadab Khan
The Economic Offences Wing (EOW) of the Mumbai police has registered the first FIR against three Brihanmumbai Municipal Corporation (BMC) officials and five private contractors, three middlemen and individuals linked to two private firms in connection with the Mithi river desilting scam.
The case involves fraudulent payments and forged documents, resulting in an estimated financial loss of over R65.54 crore to the BMC. The special investigation team (SIT) filed the FIR after uncovering fake memoranda of understanding (MoUs), including one signed by an individual who had allegedly died 20 years ago. The SIT also discovered that the reported sludge dumping sites were falsified—some were open plots, while others turned out to be row houses. When investigators visited these locations, they found no evidence of sludge having been dumped as claimed.
“During the preliminary enquiry, we discovered around nine fake MoUs. Some lacked the signatures of the landowners, while others contained forged signatures. When we visited the landowners, they informed us that they had no knowledge of such MoUs,” said Sangramsinh Nishandar, DCP, EOW.
On Tuesday, EOW teams conducted raids at around eight to nine locations across Mumbai, including the homes and offices of contractors and BMC engineers involved in the desilting and sludge dumping operations “Raids are being conducted at the premises of BMC officials and the middleman involved in the case, following the registration of the FIR,” Nishandar added.
Murky actions
According to EOW, the FIR is based on the findings of the SIT. It alleges that contractors, in connivance with BMC officials, submitted fake MoUs claiming they had received permission from landowners and gram panchayats to use certain sites for silt dumping. Investigations have revealed that in many cases, the documents were forged—some were unsigned, undated or signed by unauthorised individuals. In fact, when landowners were questioned, many denied ever entering into any MoU or allowing their land to be used for dumping.
Among the companies named in the FIR are Acute Designs, Kailas Construction Company, NA Construction, Nikhil Construction Company and JRS Infrastructure. These firms allegedly submitted falsified documents to the BMC’s stormwater drainage (SWD) department, which allegedly accepted them without verification. As a result, payments were cleared even though there was no actual sludge dumped at the claimed sites.
Between 2013 and 2023, the SWD department paid contractors over R45.50 crore based on these fabricated MoUs and reports, causing substantial financial damage to the civic body. Officials who were responsible for verifying the authenticity of the dumping site documents allegedly ignored the verification process, helping the contractors retain their tenders.
Other irregularities
The scam also involves irregularities in the procurement and rental of desilting machinery. In February 2020, the Kerala-based Matprop Technical Services Pvt Ltd visited the Mithi and nearby nullahs, and later quoted prices for silt-pusher machines (R3.07 crore) and multipurpose amphibious pontoon machines (R2.1 crore). Instead of purchasing the equipment, BMC officials approved inflated rental arrangements involving third-party vendors—Virgo Specialities Pvt Ltd and Whoder India LLP—who charged contractors Rs 8 crore for two years of usage, which was later reduced to R4 crore. “This is another cognisable offence found during the enquiry,” Nishandar said.
Though the original proposal by Matprop was to sell the machinery directly to the BMC, officials in the SWD department—including Assistant Engineer and Designated Officer Prashant Ramugade and Deputy Chief Engineer, Eastern Suburbs, SWD Ganesh Bendre—and others allegedly misused their positions. They colluded with Matprop’s directors, Deepak Mohan and Kishore Menon, as well as Virgo’s Jai Joshi and Whoder’s Ketan Kadam, to create tender conditions that forced contractors to lease equipment at inflated prices, ensuring profits for these private entities.
Contractor Bhupendra Purohit, who purchased machinery from Matprop, allegedly benefited from a fixed tendering process. His relatives’ firm Tanisha Enterprises was awarded contracts in 2021-22, while his own company Tridev Infrastructure secured contracts in 2023-24 and 2024-25. Investigators suspect a well-organised system of tender rigging and monopolisation.
Additionally, BMC paid contractors inflated rates for the use of machinery—Rs 2193 per unit for silt-pusher machines and R2366 for amphibious machines—rather than the standard rate of Rs 1609. These overpayments in 2021-22 alone resulted in a loss of R17.07 crore to the exchequer. “Following objections by the BMC’s vigilance department, the rates were changed to Rs 1609 in the 2023-24 tenders,” Nishandar said, while addressing the press.
“The quantity of silt removed each year was also reportedly exaggerated. Sub-engineers estimated the quantities without any scientific basis, allowing contractors to claim higher payments under inflated tender amounts,” the FIR states.
The FIR further points to fraudulent practices involving falsified log sheets and weighbridge slips. Between 2018 and 2021, documents from contractors such as CHM Infrastructure, Nikhil Construction Company and Acute Designs were reviewed at the SWD’s Andheri office. The records of sludge weight and timing on weighbridges were either missing or filled improperly. In some cases, BMC engineers signed the documents without authorisation, raising concerns about the authenticity of these documents and their use in processing payments.
‘Deep-rooted nexus’
The EOW investigation continues, and officials have indicated that more arrests and disclosures are likely as the case unfolds. “The probe reveals a deep-rooted nexus between civic engineers, private firms and intermediaries aimed at systematically siphoning off public funds under the guise of cleaning the Mithi river,” an EOW official said.
Apart from Ramugade and Bendre, the EOW FIR names Deputy Chief Engineer Tayshette (full name not mentioned), along with directors of five contracting firms—Acute Designs, Kailas Construction Company, NA Construction, Nikhil Construction Company and JRS Infrastructure. In total, 13 individuals have been named as accused in the case, which has been registered under various sections of the Indian Penal Code, including those dealing with criminal conspiracy, cheating, forgery and criminal breach of trust.
Why was the SIT formed?
The special investigation team launched a preliminary enquiry into the Mithi river desilting and beautification project in March last year, after BJP MLCs Prasad Lad and Pravin Darekar raised serious concerns during the monsoon session of the Maharashtra Legislature.
The BJP legislators highlighted that despite over 17 years of ongoing work and the expenditure of Rs 1300 crore, the Mithi continues to remain polluted and vulnerable to flooding. They pointed out that although the project, meant to deepen, widen, and beautify the river, was being jointly undertaken by the BMC and MMRDA, it remained incomplete and mismanaged.
In May 2023, it was further revealed that an additional Rs 1000 crore would be required to continue the work. BJP MLCs alleged that the river had not been freed from pollution, and that critical components such as service road construction, drain cleaning and beautification remained unfinished. They accused the officials concerned of deliberately neglecting their responsibilities and warned that failure to complete the Mithi river rehabilitation poses a serious threat to Mumbai, particularly during the monsoon season.
The Mithi River Development and Protection Authority (MRDPA) was established on August 19, 2005, under the chairmanship of the chief minister. The Mithi spans a total length of 17.84 km, flowing from the Powai and Vihar lakes to its confluence with the Arabian Sea at Mahim creek. As per official records, the development work on the 11.84-km stretch from Filterpada, Powai, to CST bridge in Kurla is being carried out by the BMC. The remaining 6 km, from the bridge to the Mahim causeway, is being developed by the Mumbai Metropolitan Region Development Authority in two phases, under the supervision of the MRDPA.
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