The Enforcement Directorate (ED) has frozen ₹47 crore in funds in connection with an alleged desilting fraud tied to Mumbai’s Mithi River rejuvenation project. The move follows multiple search operations conducted across the city earlier this week.
The Mithi River, which has long been a source of monsoon flooding in Mumbai, has been the focus of repeated desilting and flood-prevention efforts by the Brihanmumbai Municipal Corporation (BMC). However, ED’s probe under the Prevention of Money Laundering Act (PMLA) has now uncovered suspected siphoning of funds allocated for these operations.
According to sources in the agency, funds released by BMC to various contractors for desilting and sludge removalbetween 2018 and 2023 were allegedly over-invoiced or falsely claimed, with work either partially done or not executed at all.
Bogus Claims, Inflated Bills, and Unexecuted Work
Officials privy to the investigation revealed that several contractors submitted fabricated bills, including claims for desilting work in areas that either did not require it or where no actual work occurred. In some instances, the quantity of silt shown as removed was vastly inflated, based on satellite and ground inspection reports.
“The fraud involves a systematic attempt to drain public money under the guise of flood mitigation,” said an ED official. “It not only represents financial misconduct but also poses a direct risk to the city’s disaster preparedness.”
The agency has frozen funds lying in bank accounts linked to contractors and sub-contractors, and is examining whether officials within the civic body colluded in facilitating the fraud.
Potential Links to Earlier Civic Scams
The desilting scam bears resemblance to earlier irregularities flagged by the Comptroller and Auditor General (CAG)and various internal BMC audits. The ED has not ruled out political or administrative complicity and has sought records from multiple municipal departments, including stormwater management and roads.
While no arrests have been made yet, officials said the investigation is ongoing and more arrests could follow. The development comes amid a wider national focus on urban infrastructure fraud and municipal corruption.