ED seizes Rs 7 lakh, freezes 22 accounts in Mithi river scam involving Dino Morea

The ED has seized Rs 7 lakh in cash, digital devices and frozen 22 bank accounts in connection with an alleged multi-crore scam involving the desilting and cleaning of Mumbai's Mithi river. Actor Dino Morea, who has been summoned by the probe agency for questioning, is named in the case.

The seizures were made after the ED's Mumbai zonal office conducted searches at 18 locations across Mumbai, Kochi and Thrissur into the matter.

The ED initiated an investigation on the basis of an FIR registered at Mumbai's Azad Maidan Police Station against 13 people and entities for causing wrongful loss of over Rs 65 crore to the BMC.

The search operation on Friday covered office and residential premises linked to Prashant Ramgude (Brihanmumbai Municipal Corporation Engineer), Bhupendra Purohit (BMC Contractor), Matprop Technical Service Pvt Ltd, Jay Joshi (Director of Virgo Specialties Pvt Ltd), Ketan Kadam (Controller of Woder India LLP) and Santino Rocco Morea/Dino Morea (close associates of Ketan Kadam).

The evidence collected during the course of the investigation and search operations indicated that Prashant Ramgude, Bhupendra Purohit, Jay Joshi, Ketan Kadam, officials of Matprop Technical Service Pvt Ltd and others, colluded to form a cartel with the intent to manipulate BMC tenders related to the desilting of the Mithi river, according to the ED.

"This action effectively conferred a monopoly on the award of desilting contracts for cleaning the Mithi river and caused payments at inflated rates for desilting works, resulting in undue gains to the contractors and associated parties, thereby causing financial loss to the public exchequer," the probe agency said.

These undue financial gains have been concealed by layering them through certain shell companies/firms, which were formed by collusion amongst Ketan Kadam, Bhupendra Purohit, Prashant Ramgude and other private individuals, the ED added.

During the course of the searches, the ED seized Rs 7 Lakh in cash, froze 22 bank accounts and FDRs and one demat account. The total amount of seizure and freezing of the proceeds of crime is approximately more than Rs 1.25 crore so far.

Certain digital devices and incriminating documents were also seized during the course of search operations, which appeared to be relevant to further proceedings under PMLA, 2002.

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