ED Cracks Down on Alleged Rs 65 Crore Mithi River Scam

The Enforcement Directorate is conducting raids in Mumbai and Kochi as part of an investigation into a desilting scam involving the Mithi River, leading to a Rs 65 crore loss for the BMC. The operation targets contractors and officials over allegations of embezzlement and improper use of public funds.


Devdiscourse News Desk | Updated: 06-06-2025 10:48 IST | Created: 06-06-2025 10:48 IST
ED Cracks Down on Alleged Rs 65 Crore Mithi River Scam
Representative Image . Image Credit: ANI
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The Enforcement Directorate (ED) executed a series of searches on Friday at 15 locations in Mumbai and Kochi, targeting individuals implicated in the Mithi River desilting scam. The scam reportedly inflicted a wrongful financial loss exceeding Rs 65 crore to the Brihanmumbai Municipal Corporation (BMC), according to official sources.

These operations are conducted under the Prevention of Money Laundering Act (PMLA), focusing on contractors and officials suspected of embezzling funds allocated for desilting the Mithi River. Core allegations include the use of inflated bills, forged work records, and misappropriation of public finances meant for vital flood and drainage management in Mumbai.

The pivotal Mithi River, prone to flooding, drew scrutiny after the disastrous 2005 floods, prompting maintenance efforts by BMC. Yet, audits revealed vast discrepancies in reported versus actual desilting work, suggesting corruption. Following reports from the Anti-Corruption Bureau and the Comptroller and Auditor General, the ED initiated a probe to trace illicit financial gains.

During searches, authorities have seized financial records, electronic gadgets, and transaction data. The ED is examining a suspected network of deceitful contractors and intermediaries accused of falsifying work reports to misappropriate funds designated for essential infrastructure projects.

This investigation joins a lineup of scrutinized financial misconduct cases linked to civic projects in Mumbai, fueling demands for increased oversight and transparency within local government operations. (ANI)

(With inputs from agencies.)

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