ED widens probe into multi-crore Mithi River scam, conducts raids in Kochi alongside Mumbai

New Delhi: In a major development with links to Kerala, the Enforcement Directorate (ED) on Friday conducted searches at 15 locations in Mumbai and Kochi in connection with an alleged ₹65-crore scam involving the desilting of Mumbai’s Mithi River, official sources confirmed.

The coordinated raids targeted premises associated with suspects and contractors believed to be involved in financial fraud tied to the desilting contracts. The searches are being carried out under the Prevention of Money Laundering Act (PMLA).

According to ED sources, the investigation focuses on alleged overbilling, forged documentation and the misappropriation of public funds earmarked for flood management and drainage work in Mumbai. Several contractors and officials are under scanner for their role in the purported embezzlement.

The Mithi River, an essential floodwater channel in Mumbai, became a focus of civic intervention following the devastating floods of 2005. Since then, desilting efforts have been regularly undertaken by the Brihanmumbai Municipal Corporation (BMC) to prevent recurrence. However, multiple audits and official reviews in recent years uncovered glaring mismatches between reported and actual desilting activity.

Previous probes by the Anti-Corruption Bureau and the Comptroller and Auditor General (CAG) had already raised red flags over suspected financial wrongdoing. Acting on those findings, the ED registered a case to trace the alleged proceeds of crime.

Sources indicate that the ongoing searches aim to recover financial records, digital data and other evidence that could establish the flow of illicit funds.

“The ED suspects that a network of contractors and middlemen submitted fraudulent work completion reports and siphoned off funds meant for critical infrastructure development,” a senior official said.

This case is the latest in a series of corruption allegations related to civic projects in Mumbai and adds fuel to growing demands for greater transparency and reforms in urban local governance.