Ketan Kadam, an alleged middleman in the Rs 65 crore Mithi River desilting contract scam, played a “crucial role” in the conspiracy that resulted in wrongful loss to the Mumbai civic body, a local court observed last week while denying him bail.
Additional Sessions Judge N.G. Shukla rejected Kadam`s bail plea on 11th July, with the reasoned order made public on Tuesday.
The Economic Offences Wing (EOW) of Mumbai Police registered a case in May against 13 individuals, including contractors and civic officials, concerning the alleged Rs 65 crore fraud related to the desilting of the Mithi River, which flows through the city.
The civic body had awarded river desilting contracts to various companies through tenders issued between 2019 and 2024. It is alleged that some Brihanmumbai Municipal Corporation (BMC) officials manipulated the contract tender process to specifically benefit a particular machinery supplier, reported PTI.
Kadam, who serves as the chief executive officer (CEO) of Virgo Specialties Pvt Ltd, is accused of conspiring with officials to insert specific terms and conditions into the tenders, thereby forcing contractors to hire machines exclusively from his firm.
The accused had sought bail on grounds of parity, given that co-accused Jay Joshi had been granted bail by the court. Kadam himself has denied any involvement in the alleged scam.
The court noted that the investigation is ongoing, and statements from several witnesses, including high-ranking BMC officers, are yet to be recorded, according to PTI.
“After considering the material on record, it appears that the role of the applicant is crucial in setting the terms and conditions of the desilting work contract before entering Virgo Ltd into the MOU for purchasing machines and sealing an agreement for hiring contractors,” the court stated.
The judge further highlighted that Kadam received various sums from contractors into the bank account of his shell company.
“This material prima facie shows that the applicant is the key accused in the conspiracy of causing wrongful loss to BMC,” the court ruled, reported PTI.
Separately, the police have also questioned Bollywood actor Dino Morea and others during the investigation. Dino Morea is alleged to have been involved in the scam and has been interrogated by both the Mumbai Police`s Economic Offences Wing (EOW) and the Enforcement Directorate (ED) in connection with this money laundering probe.
(With inputs from PTI)
