A Mumbai sessions court on Friday, March 13, 2026, rejected the third bail application of Ketan Kadam, the former CEO of Virgo Specialties Pvt Ltd, in the ₹65 crore Mithi River desilting scam. Additional Sessions Judge N.G. Shukla characterized Kadam as the “mastermind of the criminal conspiracy,” citing voluminous evidence that he orchestrated a scheme to defraud the Brihanmumbai Municipal Corporation (BMC) by rigging tender conditions to favor his own company’s machinery.
The court’s reasoned order highlighted that Kadam’s influence and the gravity of the financial fraud make him a flight risk and a threat to the integrity of the ongoing investigation.
The “Tender Engineering” Conspiracy
The Economic Offences Wing (EOW) of the Mumbai Police alleges that Kadam acted as a bridge between corrupt BMC officials and contractors to manipulate public procurement between 2019 and 2024.
- Machinery Monopoly: Kadam allegedly ensured that BMC tender terms mandated the use of specific specialized dredging equipment (like silt-pushing pontoons) that only his firm, Virgo Specialties, could provide.
- Exorbitant Rents: Contractors were allegedly “compelled” to hire this machinery at rates significantly higher than the market value, causing a direct wrongful loss of ₹65.54 crore to the civic body.
- The “Demonstration” Bribes: To secure these favorable terms, Kadam reportedly funded luxury travel and hotel stays in Delhi and Kerala for senior BMC engineers to “inspect” the machinery prior to the tender finalization.
Judicial Observations: Why Bail was Denied
| Reason for Rejection | Court’s Observation |
| Mastermind Status | The court found Kadam played a “pivotal role” in the conspiracy since before the tenders were even drafted. |
| Financial Siphoning | Allegations that ₹2.41 crore was funneled into Kadam’s personal accounts via shell companies under the guise of “CEO salary.” |
| Tampering Risk | Given his influence over high-ranking BMC officers, the court feared he would “tamper with evidence or threaten witnesses.” |
| Lack of Parity | The court refused to grant him bail on parity with co-accused Jay Joshi, noting Kadam’s involvement was “much more serious.” |
[Image: A flowchart illustrating the Mithi River “Scam Cycle”: Tailored Tender → Mandatory Machinery Hire → Inflated Billing → Kickbacks via Shell Companies.]
Broader Impact: Mumbai’s Flood Mitigation at Risk
The Mithi River is central to Mumbai’s monsoon drainage system. The EOW’s investigation has uncovered a decade-long pattern of neglect and fraud:
- Fake MoUs: Contractors allegedly forged land-use permissions to show they were disposing of silt when they were actually dumping it illegally or not removing it at all.
- Inflated Metrics: Bills were raised for per-metric-ton removal using “ghost machinery” that was never deployed on-site.
- Monsoon Threat: Any corruption in desilting directly increases the risk of urban flooding, as seen in the severe waterlogging of the Bandra-Kurla Complex (BKC) and surrounding areas in recent years.
Key Takeaways
- Third Strike: This marks Kadam’s third failed attempt at regular bail since his arrest in May 2025.
- EOW Victory: The court’s validation of the “voluminous documents” in the chargesheet strengthens the SIT’s case against 13 other accused, including civic engineers.
- Recovery Efforts: The Enforcement Directorate (ED) is reportedly tracking the money trail to identify the final beneficiaries of the siphoned public funds.
Sources
- The Times of India: Mithi desilting fraud: 3rd bail plea rejected, March 13, 2026.
- Press Trust of India (PTI): Middleman denied bail in Rs 65 cr Mithi desilting case, March 13, 2026.
- Rediff News: Ketan Kadam’s Bail Rejected in Mithi River Desilting Scam, March 13, 2026.
- The Indian Express: Mithi scam ‘mastermind’ used shell companies: Court, October 2025 (Reference).
Leave a Reply