Mithi River Scam: Court Refuses Bail To Ketan Kadam, Says Records Show Wrongful Gains And Shell Company Transactions

Mumbai: In the Mithi river desilting scam, the sessions court has refused to grant bail to Ketan Kadam of Virgo Specialties Pvt Ltd, observing financial transactions traced to his shell companies. A key accused in the case, he allegedly conspired with BMC officers, compelling the contractor to hire machines at an inflated rent from his firm, with certain conditions added by him to the tender. The scam allegedly caused a loss of Rs65 crore to the BMC.

Defence Terms Charges ‘Assumptive’

The defence claimed that the allegations in the FIR and in the chargesheet are based on assumptions. Kadam’s lawyer said there is no material showing that the tender conditions were added at his behest. The defence pointed out that the BMC, on the one hand, defended the specifications and use of the machines in court, but on the other hand questioned the cost and their use by BMC officials. They also said that the BMC officials have not been arrested, even though the high court has not granted them any interim protection. The court, however, said that the non-arrest of co-accused cannot be ground for Kadam’s release on bail.

The prosecution objected to the bail, and claimed that Kadam is the mastermind of the scam. He bore the expenses for tour and hotel charges of BMC officials on visits to Delhi and Kerala for examination of specification and demonstrations of the machines. He allegedly spent this amount much before the terms and conditions for the use of machines were specified. The prosecution alleged Kadam was handin-glove with the BMC officials and other co-accused.

Court Flags Unjustified ₹2.41-Crore Transfer

Relying on the documents presented by the prosecution, the court noted that Virgo Specialties transferred Rs6 crore to buy machines. Of this amount, Rs2.41 crore was transferred to the personal account of the applicant, the court said, adding that even though it has been claimed that it was salary for Kadam as the CEO, there’s no document to justify “such a huge salary”.

Besides, the court noted that the successful bidder had transferred various amounts into the bank account of Groupo Solution and Woder India, two companies formed by Kadam. “This prima facie shows that the applicant wrongfully gained from the desilting contract given to other contractors,” the court noted, observing that the successful bidder transferred Rs50 lakh to Groupo Solution, which transferred Rs41.94 lakh into the account of Woder India.

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