'No Role In Conspiracy': Special Court Grants Bail To Businessman In Mithi River Desilting Scam

Mumbai: In the alleged Mithi river desilting scam, a special court granted bail to Jay Joshi of Virgo Specialties Pvt Ltd, stating that he had no role in the alleged conspiracy and did not intend to cheat the BMC.

About The Case

Joshi was arrested on May 6 by the Economic Offences Wing (EOW), which claimed that Joshi, along with the CEO of his company, Ketan Kadam, and a few BMC officers, had compelled a contractor to rent machines at an inflated rate from Virgo. The agency alleged that the scam caused the BMC a loss of Rs 65 crore. Joshi’s lawyers argued that he had appointed Kadam as the CEO on May 5, 2020, and that all agreements, transactions, and Memorandum of Understanding (MoUs) had since been managed by Kadam.

They argued that he was only a director and could not be prosecuted under Indian Penal Code Section 420 (cheating). Additionally, the court criticised the prosecution for failing to comply with the mandatory arrest provisions. Joshi’s wife was only informed in writing on May 7 at 11.10 am. However, the police claimed that they had notified her orally on May 6. The court pointed out that if Joshi was arrested at 10.30 pm, officers could have easily sent a woman constable to deliver a written notice that same night, allowing his relatives to contact a lawyer for legal advice.

The court also observed, based on statements from employees of contractors Lokesh Jain and Hitesh Purohit, that Kadam, not Joshi, handled transactions for Virgo. There was no material evidence indicating that Joshi had compelled the contractors, and there was no concrete proof of forgery related to tenders and MoUs in the desilting project, the court said.