• Source:JND
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The Enforcement Directorate is investigating the alleged Mithi River scam involving the misappropriation of state funds in the name of desilting the Mithi River, an artery that drains out excess monsoon waters from Mumbai.

The alleged scam of worth Rs 65 crore gained attention after actor Dino Morea was called in for questioning first by the Mumbai Police's Economic Offence Wing (EOW) and then the ED.

Mithi River Scam: How it all started?

Mithi is a 17.8 km-long river that originates from the overflow of Vihar and Powaai lakes and falls into the Arabian Sea via Mahim Creek. This natural drainer river became a dumping ground of garbage and sewage as both residential slums and industries are situated along it.

The 2005 Mumbai floods exposed the fragility, and the BMC decided to make efforts to desilt it regularly. As an 11.84 km stretch falls under the BMC, it has undertaken multiple desilting efforts since then.

Despite hefty funds being allocated and infused, the concerns of ineffective work, negligence, and corruption continued to surface.

In August 2024, after the BJP MLCs raised concerns in the Legislative Council, the government formed an SIT to probe the desilting works.

The SIT was formed out of the Mumbai Police's EOW, which kickstarted its probe of around Rs 1,100 crore between 2005 and 2021.

After questioning stakeholders, including BMC officials, contractors and middlemen, the SIT registered the first FIR in the matter on May 6.

13 people, including BMC Storm Water Drains (SWD) department’s assistant engineer, Prashant Ramugade, two deputy chief engineers, and a contractor, were accused of misappropriating funds, causing losses of over Rs 65 crore to the civic body.

How scam was carried out?

The BMC officials, contractors, and middlemen involved in the scam allegedly conspired to craft favourable terms and conditions in the contract in order to remove the competition and ensure contracts were awarded to preferred entities.

While the companies submitted a fake MoU of dumping sites to the SWD division of the BMC, the officials continued to pass their sludge transportation and dumping bills without due verification.

According to an Indian Express report, the SWD paid Rs 45.50 crore to contractors between 2013 and 2021, with false claims that the sludge was removed.

In total, the BMC suffered a loss of Rs 65 crore. NDTV reported that one of the contract worth Rs 8 crore saw payments of Rs 17 crore.

How Dino Morea came under scrutiny?

Several arrests were made in the case, with two of them being key middlemen Ketan Kadam and Jayesh Joshi 'Jai'. During the investigation, the EOW scrutinized the call detail records of Kadam and found frequent communication between Kadam and Dino, his brother Santino.

Both were summoned by the EOW. Dino was know to Kadam for 25 years. The Indian Express report, based on EOW sources, states that there were five to seven financial transactions between Dino and Kadam. These transactions amount to Rs 14-18 lakh.

Moreover, Kadam's wife and Santino are directors in the same company.