MUMBAI: The Mumbai unit of the Enforcement Directorate (ED) has frozen funds worth over ₹47 crore from bank deposits, fixed deposits and demat accounts linked to civic contractors and officials following searches at eight places across Mumbai on Thursday as part of its investigation into the alleged irregularities in the execution of contracts for desilting the Mithi River.
According to officials aware of the developments, the search operation covered commercial and residential premises linked to Brihanmumbai Municipal Corporation (BMC) contractors Acute Designs, Kailash Construction Company, Nikhil Construction Co, N A Construction Pvt Ltd, JRS Infrastructure and civic engineer Prashant Tayshete, whose assets worth ₹1 crore were frozen.
“The search action led to the freezing of more than ₹47 crore in multiple bank accounts, FDRs (fixed deposit receipts) and funds lying in demat accounts,” said an ED official, requesting anonymity. Out of this, assets worth around ₹1 crore allegedly belonged to Tayshete.
“Further, digital devices and records pertaining to various immovable properties and documents have been seized during the course of the search, which are relevant for further proceedings under the PMLA (Prevention of Money Laundering Act),” the official added.
The ED launched its money laundering investigation on May 6 based on an FIR registered at the Azad Maidan police station against 13 individuals and entities, including civic officials, contractors and intermediaries, for allegedly causing the BMC wrongful losses worth over ₹65 crore while executing contracts to desilt the Mithi River.
“The evidence collected during the course of investigation and the search operations prima facie indicate various irregularities in the works related to desilting of Mithi River by the contractors in connivance with officials of the SWD (stormwater drain) department of the BMC and others,” said the ED official.
During the course of the investigation, the ED also found that civic contractors had submitted false documents, including Memorandums of Understanding from landowners and no-objection certificates from village panchayats for land purportedly used for dumping silt, the official added.
The investigation has also revealed that BMC officials misused their positions for financial gain while procuring silt pushers and multipurpose amphibious pontoon machines to desilt the river in 2021 and 2022.
Earlier, on June 6, the ED carried out search operations at 18 locations across Mumbai, Kochi and Thrissur in connection with the investigation. The agency has seized or frozen proceeds of crime worth around ₹49.8 crore so far, officials said.