The NMMC is auditing a scam, which is expected to be in crores and involves civic employees who were allegedly in collusion with contractor H.B. Bhise and Madhvi.
Bhise, who was supplying machinery and personnel for demolition of encroachments from 2003 to 2009, is accused of submitting inflated bills.
Bhise was arrested after NMMC lodged a complaint in May. Bhise had alleged the involvement of Madhvi in the transactions. The police said that Rs. 2 crore were transferred from Bhise’s account to Madhvi’s account.
The session court and the high court had rejected Madhvi’s anticipatory bail application. The police on Wednesday had obtained an arrest warrant against him.
However, Madhvi has denied any involvement in the scam claiming it to be a political conspiracy against him.