Mumbai’s Mithi River Desilting Case: How The Alleged ₹65-Crore Fraud Unfolded?

The Mumbai Police’s Economic Offences Wing (EOW) is investigating alleged financial irregularities in the desilting of Mumbai’s Mithi River, with investigators alleging that manipulated tenders, inflated machinery costs and falsified records caused the Brihanmumbai Municipal Corporation (BMC) a loss of ₹65.54 crore. Actor Dino Morea was questioned by the EOW on October 2 after investigators examined his alleged links with people connected to the case.

Here is what the case is about and why Morea’s name has surfaced.

What Is The Mithi River Desilting Case?

The case relates to alleged irregularities in contracts awarded for the desilting and rejuvenation of the Mithi River. The project was initiated by the BMC and other civic agencies after the devastating 2005 Mumbai floods, with the aim of improving the river’s capacity to manage floodwater.

The 17.84-km-long river requires regular removal of sludge and debris. Contractors were hired to carry out the work using specialised equipment, including sludge pushers and dredging machines.

According to investigators, the contractors were paid based on the weight of the silt and dredged material removed from the river. The EOW alleges that records were manipulated to inflate the quantity of silt shown as removed, allowing contractors to receive higher payments.

The case involves allegations of financial irregularities, inflated tenders and corrupt practices. The EOW has booked 13 people in connection with the alleged fraud and has alleged a ₹65.54-crore loss to the BMC.

How Was The Alleged Fraud Carried Out?

The procurement and use of specialised desilting equipment is a key part of the investigation.

According to the EOW, some BMC officials travelled to Kochi in October 2020 to purchase desilting equipment from Matprop Technical Services Private Limited. The BMC later floated tenders with specifications that allegedly matched Matprop’s equipment.

Investigators suspect that this effectively required contractors to use Matprop’s machines.

When contractors approached Matprop to purchase the equipment, they were allegedly directed to Jayesh Joshi, who is associated with Mumbai-based Virgo Specialties Private Limited, and Ketan Kadam.

Police suspect that the machinery was not sold to the contractors but instead rented out at allegedly inflated rates.

The EOW is also examining whether civic records were manipulated to show that larger quantities of silt had been removed from the river than were actually removed. Since payments were linked to the quantity of material dredged, investigators allege that this could have resulted in inflated payments to contractors.

Kadam was arrested on May 7, 2025, while Joshi was also arrested in connection with the investigation.

The EOW had formed a special investigation team in August 2024 after BJP leaders Prasad Lad and Pravin Darekar alleged irregularities in the desilting of the Mithi River.

How Is Dino Morea Linked To The Case?

Dino Morea’s name surfaced during the investigation after police examined call detail records linked to Ketan Kadam. Investigators found communications between Kadam, Morea and his brother Santino Morea.

The EOW is also examining financial transactions involving the Morea brothers and people linked to Kadam. According to the information being examined by investigators, some transactions between Dino Morea and Kadam were reportedly in the range of ₹14 lakh to ₹18 lakh.

Police are also examining business links between the two families. Santino Rocco Morea, Dino Morea’s brother, and Punita Kadam, Ketan Kadam’s wife, were directors of UBO Ridez Private Limited.

Investigators are therefore verifying the nature of the financial dealings and business relationships between those involved.

However, Morea’s specific role in the alleged scam has not been established. He has not been named as an accused, and his questioning is part of the ongoing investigation.

Morea and his brother were previously questioned by the EOW in May 2025.

There have been conflicting reports about Morea’s arrest.

A Mid-Day report claimed that Morea was arrested on October 2 after nearly eight hours of questioning at his Bandra residence. Morea, however, denied that he had been detained or arrested.

The EOW confirmed that Morea was questioned but, according to the information available, did not confirm his arrest.

What Role Did The ED Play?

The Enforcement Directorate (ED) has also investigated the case over alleged money-laundering concerns under the Prevention of Money Laundering Act.

In June 2025, the agency conducted searches at Morea’s Mumbai residence and at 14 other locations in Mumbai and Kochi. The searches included premises linked to Morea’s brother, contractors and intermediaries under scrutiny. Investigators reportedly seized documents during the searches.

The ED’s probe is focused on tracing financial transactions and alleged proceeds connected to the suspected financial irregularities.

Why Does The Case Matter?

The Mithi River is a key part of Mumbai’s flood-management system. The alleged irregularities therefore concern both the financial loss to the civic body and the execution of work intended to improve the city’s flood protection.

The investigation is examining whether alleged manipulation of contracts, machinery costs, payments and desilting records allowed contractors and others to benefit at the expense of the BMC.

The role of the individuals under investigation, including the nature of Morea’s financial and personal links with people named in the case, will depend on the findings of the ongoing probe and subsequent legal proceedings.