In an investigation into the Rs 65-crore Mithi River desilting scam, the Economic Offences Wing (EOW) arrested Shersingh Rathod, a contractor from Borivali for allegedly submitting fake pictures and videos of silt removal work and thereby fraudulently benefitting of Rs 29.63 crore. This is the third arrest in the Mithi River desilting scam and earlier, Ketan Kadam and Jayesh Joshi were arrested.
On May 7, Ketan Kadam, the owner of Woder India LLP and CEO of Virgo Specialties, was arrested. He was among 13 people booked by the EOW for allegedly causing the Brihanmumbai Municipal Corporation (BMC) a loss of Rs 65.54 crore in desilting project.
The fraud involves alleged financial irregularities, inflated tenders, and corrupt practices linked to desilting work for Mithi River. Along with Kadam, the EOW also arrested Jayesh Joshi, who is associated with Virgo Specialties Pvt Ltd, a Mumbai-based industrial product manufacturer.
Rathod’s role was unearthed after EOW officials started probing contractors who were given work orders based on tenders to remove silt. There were five entities (contractors) including one Maideep Enterprises, which was owned by Rathod and he got a work order in 2021-2022. The memorandum of understanding (MoU) had been signed with Rathod on the condition that while removing silt from the river, pictures and videos be taken as records.
During the probe, when pictures and videos were being verified, it was learnt that the trucks which were used to transport the silt carried building debris, said senior inspector at EOW Pradeep Sawant.
During an inquiry, Rathod provided three agreements which he made with land owners in Bhiwandi and Panvel where silt were supposed to be dumped. However, when the EOW officials inquired with those land owners, they denied knowing Rathod and confirmed their documents and signatures were forged on the MOU, said Sawant.
“One of the agreements was made in April 2021 with a land owner who died in January 2021. Rathod made a bogus agreement in the name of the dead person using his forged documents,” said Joint Commissioner of Police Nishit Mishra. Mishra added that Rathod had even submitted bills of Rs 29.63 crore in his firm’s name Maideep Enterprises.
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Mishra said these bills were cleared by BMC officials, with the amount reflecting in Rathod’s firm’s account.
Stating Rathod is a big beneficiary in the scam, Sawant said verification of evidence about the other four contractors was underway and once their role is clear, legal action will be taken against them.
Rathod was arrested and produced in court and remanded to police custody till August 26.
Investigation in the case started last year, when EOW set up a special probe team in August 2024 after BJP leaders Prasad Lad and Pravin Darekar raised questions in the state legislative council about alleged irregularities in desilting the 17.84-km-long river.
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The EOW had earlier questioned Bollywood actor Dino Morea after a couple of transactions were found between him and Kadam between 2019 to 2022. Morea’s family member Santino Rocco Morea and Punita Kadam, wife of Ketan Kadam, were directors in a private company, UBO Ridez Private Limited, which operates Victorian era-style electric carriages in Mumbai.
According to the EOW, some BMC officials travelled to Kochi in October 2020 to buy desilting equipment from Matprop Technical Services Pvt Ltd and, subsequently, floated tenders inviting bids for desilting. However, the machines’ specifications matched Matprop’s equipment, which essentially forced contractors to use its machines. Also, the tender said the BMC would pay contractors according to the weight of the silt and dredge removed from the river. When contractors approached Matprop, they were directed to approach Joshi and Kadam, who, in connivance with the company, did not sell the equipment but rented it at inflated rates, said the police. They were also investigating how Ketan Kadam’s desilting services company, Woder India LLP, got various civic contracts.
