Mithi scam ‘mastermind’ used shell companies, played role in setting terms of contract: Court

“The applicant has direct involvement in the present crime and he has managed money received from the contractors in his shell companies. He had played a role since prior to setting the terms of tenders in conspiracy with BMC officials. Considering the role of the applicant and him being an influential person, there are chances of tampering with the evidence and threatening the witnesses,”additional sessions judge N G Shukla said in the order passed on October 14.

The EOW claimed that Kadam and others including contractors, Brihanmumbai Municipal Corporation (BMC) officials, had conspired to defraud the civic body through irregularities in tendering for desilting of the Mithi river, between 2021 and 2023.

Kadam allegedly conspired to insert terms and conditions of the tenders, in a manner compelling contractors to hire or purchase machines from his company.

He is also alleged to have incurred expenses of flight tickets and hotel stay of officers of the BMC to go to Delhi, for a visit to see the demonstration of special machines for the desilting process.

Additional Public Prosecutor Chaitrali Panshikar submitted that the contract was formed in such a way to compel contractors to hire machines from Virgo by paying excess rent, causing wrongful loss to the BMC.

Kadam had argued that there is no evidence to show that the conditions were inserted at his behest.

He also submitted that the BMC, in a writ petition in the Bombay High Court, had defended the use of the machines, while claiming before the EOW that the machine cost was higher.

Kadam had also submitted that BMC officials are not arrested by the agency.

The EOW said that Kadam had formed two companies and forged documents were created to show hiring of machines and that Rs 2.41 crore were transferred into the personal account of Kadam by Virgo, shown as the salary of Kadam as the CEO.

“…however, there is no document for such justifications for receiving such a huge salary. Even there is no document showing how much monthly salary was agreed to be given by Virgo to the applicant…” the court said.

On the point raised about non-arrest of BMC officials, the court said that their anticipatory bail pleas are pending before the high court and it would not be proper to comment on it.

“However, that cannot be a ground to grant bail to the applicant considering his role as a mastermind of the conspiracy with the BMC officials since prior to settling the terms of tenders, compelling the contractors to use machines,” the court said