Mithi scam link clouds BMC’s Bhandup water plant contract

Concern was expressed about the company’s association with former director and majority shareholder Jayesh Joshi, who was named in an Economic Offences Wing investigation into alleged irregularities in Mithi River desilting contracts

MUMBAI: The selection of Virgo Specialties Pvt Ltd for a ₹36.83-crore contract to replace deteriorating components at the BMC’s 900-million-litres-per-day (MLD) water treatment plant at Bhandup Complex came under scrutiny at the civic standing committee on Wednesday, with questions raised about the company’s alleged links to the Mithi River desilting scam.

Concern was expressed about the company’s association with former director and majority shareholder Jayesh Joshi, who was named in an Economic Offences Wing investigation into alleged irregularities in Mithi River desilting contracts. (Hindustan Times)

Concern was expressed about the company’s association with former director and majority shareholder Jayesh Joshi, who was named in an Economic Offences Wing investigation into alleged irregularities in desilting contracts awarded by the BMC during 2021-22 and 2022-23. According to reports on the investigation, Joshi was arrested in May 2025.

Explaining the civic administration’s decision to allow Virgo to participate, additional municipal commissioner (projects) Abhijit Bangar said the matter had been referred to the BMC’s senior legal counsel to ensure that the decision would withstand legal scrutiny.

“Two people were arrested in the Mithi River desilting scam, one of them a director of Virgo,” he said. “The issue arose when we learnt that the company was participating in the Bhandup tender, and that a person associated with it was connected to the Mithi River desilting controversy. We referred the matter to our senior legal counsel so that the decision could not be challenged in a court later. Firstly, the FIR was against the individual and not the company. Secondly, if the person is no longer associated with the company, it cannot be disqualified on that basis. It was on these grounds that the company was found eligible.”

The hydraulic engineering department recommended awarding the contract to Virgo, stating that its bid conformed to the BMC’s specifications, that the company had experience in executing similar works for other civic departments and that its quoted rates were reasonable in prevailing market conditions.

The work is scheduled to be completed within 24 months, excluding the monsoon period. Each of the six clarifier tanks will be treated as an independent work, with a three-year defect liability period. The proposal was passed at the civic standing committee on Wednesday.