Kadam, who was arrested in 2015, told special ACB judge G A Sanap that the jail authorities charged him around Rs 30,000 for serving tea twice a day.
He said that sometimes, when an inmate got food from home, the jail officials diverted it to other prisoners and they had to pay Rs 50,000 for it.
"Even for providing a mattress, they charge about Rs 50,000," Kadam told the court.
"Under this scheme, the medical officers will make a medical record for an inmate so that he gets bail from the court on health grounds. For this, they charge up to Rs 1 crore," Kadam told the court.
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He alleged that the officials charged the inmates if they wanted to keep them in a particular barrack, which mainly housed inmates accused in cheating cases, as "they get a better treatment there for money".
He claimed that the jail officials had agreed to offer him better barracks, but asked him not speak about it to anyone.
Kadam claimed that the CCTV image would speak for itself as he had never misbehaved with anyone in the jail.
He alleged that even when inmate Manju Shette died, the next day the jail officials cleared the jail as soon possible.
Shette (45) had died at the J J Hospital on June 23 after being allegedly beaten up by the Byculla jail officials and staff as she "failed" to account for two eggs and five loaves of bread, which were distributed by her among the inmates, the police had said.