MUMBAI: The Enforcement Directorate (ED) on Saturday announced that it has frozen assets worth over ₹47 crore during search operations in connection with the Mithi River Desilting Scam. The raids, conducted on July 31 by the Mumbai Zonal Office of the ED, targeted eight locations across the city, including those linked to civic contractors and a municipal engineer.
The action forms part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA), 2002. The probe originates from FIR No. 0075/2025 filed at Azad Maidan Police Station, which alleges large-scale financial irregularities in desilting works commissioned by the Brihanmumbai Municipal Corporation (BMC).
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The ED confirmed that the searches were carried out at premises associated with five contractors — M/s Acute Designs, M/s Kailash Construction Company, M/s Nikhil Construction Co, M/s N A Construction Pvt Ltd, and M/s J.R.S Infrastructure — along with BMC engineer Prashant Krishna Tayshete. The investigation alleges that these entities, in collusion with BMC officials, caused a financial loss of ₹65 crore to the civic body through manipulation of desilting operations.
Officials recovered multiple digital devices, property-related documents, and other materials deemed relevant to the money laundering probe. The agency revealed that funds were found spread across several bank accounts, fixed deposits, and demat accounts, all of which have now been frozen.
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₹65 Crore Loss to BMC Cited in Initial FIR
The ED’s investigation follows allegations that desilting contracts meant for cleaning the Mithi River were fraudulently executed. The FIR names 13 individuals and entities for their suspected role in the scam. Preliminary findings suggest irregularities in measurement books, inflated bills, and payments for incomplete or unverified work.
The seizure of assets and supporting documentation is expected to play a key role in the next phase of the investigation. Officials stated that the financial trails uncovered could potentially lead to further action against those involved.
The ED emphasised that the investigation is ongoing and that more details will be shared as the case progresses.