MUMBAI, Nov. 5 -- The selection of Virgo Specialties Pvt Ltd for a Rs.36.83-crore contract to replace deteriorating components at the BMC's 900 MLD)water treatment plant at Bhandup Complex came under scrutiny at the civic standing committee on Wednesday, with questions raised about the company's alleged links to the Mithi River desilting scam. Concern was expressed about the company's association with former director and majority shareholder Jayesh Joshi, who was named in an Economic Offences Wing investigation into alleged irregularities in desilting contracts awarded by the BMC during 2021-22 and 2022-23. According to reports on the investigation, Joshi was arrested in May 2025. Explaining the civic administration's decision to allow Virgo to participate, additional municipal commissioner (projects) Abhijit Bangar said the matter had been referred to the BMC's senior legal counsel so that the decision could not be challenged in a court later. "Firstly, the FIR was against the individual and not the company. Secondly, if the person is no longer associated with the company, it cannot be disqualified on that basis. It was on these grounds that the company was found eligible," he said. Two companies, Virgo Specialties and Suez India Pvt Ltd, submitted bids for the project by the January 21, 2026 deadline. Both were declared technically responsive. Their financial bids were opened on April 21, with Suez quoting Rs.31.59 crore, excluding GST, against Virgo's Rs.28.38 crore. The BMC's hydraulic engineering department recommended awarding the contract to Virgo, stating that its bid conformed to the BMC's specifications, that the company had experience in executing similar works for other civic departments and that its quoted rates were reasonable in prevailing market conditions....