Mithi River Desilting Scam: 'Virgo CEO Ketan Kadam Received ₹2.41 Crore In Personal Account From Supplier,' Says Sessions Court

Mumbai: Ketan Kadam of Virgo Specialties Pvt ltd is alleged to have received Rs 2.41 crores in his personal account from the Maptrop Technical Services Pvt Ltd, the firm from where Virgo specialities had purchased machines which was to be used in Mithi river desilting, the sessions court has noted while rejecting his bail plea.

The sessions court last week rejected bail plea of Kadam. However, the detailed order was released on Tuesday. The court in its order said, "The applicant is the key person in the conspiracy who acted as an intermediary with BMC officers, since prior to entering into any agreement for purchase of the machines or agreement of hire with contractors on behalf of his company, for setting the terms and conditions in the tenders thereby compelling the contractors to purchase the machines or hire the machines from his company only. Applicant is beneficiary of the amount of wrongful loss caused to BMC."

Kadam was appointed as CEO of Virgo Specialties in 2020, wherein he was made an authorized signatory of the company. It is alleged that Kadam is at the center of the enter scam. It is alleged that Kadam on behalf of Virgo entered into contract with supplier of Machines Maptrop in a manner to create monopoly compelling contractors to hire machines on rent from Virgo on excess rent.

Further, it is alleged that Kadam used money transferred by contractors in M/s. Groupo Solutions formed by Kadam through his friend and BMC officer through his friend and got wrongful gain from the contracts of desilting work issued by the BMC.

Kadam had however claimed that there was no monopoly of Maptrop for purchase or hire of the machines and the contractors had liberty to purchase machines even from other companies.

It was further pointed out that Virgo had also purchased one machine from another company by the name Mobarn at Netherland. Besides, it was also contended that Maptrop had sent Emails to other contractors giving information for sale or taking the machines on rent.

The prosecution however had contended that Kadam had paid for the expenses of BMC officers' visit for inspection of the machine way back in September 2020. It was contended that Virgo had not purchased machines at that time and even not entered into MOU for purchase of machines and in spite of that, he incurred said expenses of the BMC officials.

The prosecution has claimed that Virgo had transferred Rs.6 Crores for purchase of the machines to Maptrop and out of that, Rs. 2.41 crores has been transferred in the personal account of Kadam. Kadam however, claimed that it was his salary. However, the court said “there is no document for such justification for receiving such a huge salary. There is no document showing how much monthly salary was agreed to be given by Virgo to Kadam.”

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“Applicant through Virgo entered into tripartite agreement dated January 9, 2021 mentioning the clauses and thereby, restricting the supplier to not sell/rent or lease the machines to any bidder, except through Virgo. Prima facie, it is nothing but creating monopoly of Virgo either for purchase or to take the machines on hire for desilting work by the contractors,” the court noted.

It is further observed that “applicant had a pre-plan with the officers of the BMC to insert the terms and conditions in the tenders compelling the contractors to hire the machines from his company on higher rents.”