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Mumbai desilting scam: Two held in Rs 65 crore Mithi river case, say police

Updated on: 07 May,2025 01:06 PM IST  |  Mumbai

The accused have been identified as Ketan Kadam and Jai Joshi. They were taken into custody following coordinated searches carried out on Tuesday by a special investigation team of the EOW at their residences and offices

Mumbai desilting scam: Two held in Rs 65 crore Mithi river case, say police

The Mithi river, which flows through key parts of Mumbai, plays a vital role in the city's flood management during monsoon season. Representational Pic

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Two individuals alleged to be middlemen have been arrested in connection with the Rs 65 crore Mithi river desilting scam, according to the Economic Offences Wing (EOW) of Mumbai Police. These arrests mark the first in a growing investigation involving senior municipal officials and contractors.

As per PTI, the accused have been identified as Ketan Kadam and Jai Joshi. They were taken into custody following coordinated searches carried out on Tuesday by a special investigation team of the EOW at their residences and offices. The team also searched the premises of Brihanmumbai Municipal Corporation (BMC) officials Prashant Ramgude and Ganesh Bendre, along with contractors tied to the project.


According to PTI reports, Kadam and Joshi are believed to have acted as facilitators in the rental of silt pusher machines and multi-purpose amphibious pontoon units manufactured by a firm named Matprop. Investigators allege that BMC officials manipulated the tendering process to favour this particular supplier by including specifications tailored exclusively to Matprop’s machinery.


Co-accused Dipak Mohan and Kishore Menon of Matprop allegedly offered the machines to the BMC for Rs 3.09 crore. A team of BMC officials visited the company’s plant in Kerala, after which tenders were floated using identical technical requirements effectively eliminating all other competitors and ensuring Matprop’s monopoly.

Desilting work using Matprop’s equipment was charged at a significantly inflated rate. While the previous cost for standard desilting was Rs 1,609 per metric tonne, this was raised to Rs 2,193 per metric tonne with the use of the specialised machines. Although BMC’s vigilance department objected to the steep hike, the inflated rate was eventually cleared.

The EOW has confirmed a payment of Rs 17.07 crore was made to the contractors under the scheme. Moreover, the special investigation team has alleged that fraudulent invoices were raised for transporting sludge out of Mumbai, activity that remains unverified.

Further revelations suggest that when a contractor attempted to purchase equipment from Matprop, he was redirected to Kadam and Joshi. The duo allegedly offered to rent the machines for Rs 8 crore over a two-year period, eventually settling the deal at Rs 4 crore.

A case has been registered against 13 individuals, although only Kadam and Joshi have been arrested thus far. The two are expected to be produced in court later today.

The Mithi river, which flows through key parts of Mumbai, plays a vital role in the city's flood management during monsoon season. 

(With inputs from PTI) 

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