The Enforcement Directorate (ED) on Friday carried out searches at 15 places in Mumbai and Kochi in connection with the Mithi River desilting scam that caused a wrongful loss of more than ₹65 crore to the Brihanmumbai Municipal Corporation (BMC), official sources said.
The massive crackdown is underway at the premises across Mumbai and Kochi linked to the accused and suspects as part of an ongoing probe into alleged financial irregularities. According to the sources, the searches are being carried out under the provisions of the Prevention of Money Laundering Act (PMLA) at locations linked to contractors and officials suspected of embezzlement in the desilting operations of the Mithi River.
The case involves accusations of inflated bills, fake work logs, and systematic diversion of public funds sanctioned for flood prevention and drainage maintenance in Mumbai. The Mithi River, a critical drainage artery in Mumbai, drew national attention after the catastrophic 2005 floods. In response, the BMC and other civic agencies initiated regular desilting and cleaning operations to prevent future flooding. However, audits and investigations by agencies in recent years exposed glaring discrepancies in the actual versus reported desilting work, raising serious concerns about corruption.
Earlier inquiries by the Anti-Corruption Bureau and the Comptroller and Auditor General (CAG) had flagged possible financial misconduct. The ED stepped in after taking cognizance of these reports and registered a money laundering case to trace the proceeds of crime.
{{/usCountry}}Earlier inquiries by the Anti-Corruption Bureau and the Comptroller and Auditor General (CAG) had flagged possible financial misconduct. The ED stepped in after taking cognizance of these reports and registered a money laundering case to trace the proceeds of crime.
{{/usCountry}}Sources within the agency revealed that financial documents, electronic devices, and transaction records are being seized during the searches. The ED suspects that a network of contractors and middlemen submitted fraudulent work completion reports and siphoned off funds meant for critical infrastructure development.
This case adds to the growing list of alleged financial irregularities being investigated in connection with civic infrastructure works in Mumbai, sparking renewed calls for accountability and systemic reforms in the functioning of local bodies.