NEW DELHI/MUMBAI: A Special PMLA court in Mumbai on Monday sent the Shiv Sena leader Sanjay Raut to four-day custody of the Enforcement Directorate (ED) in an alleged land scam case after the agency disclosed financial transactions between his wife and that of a real estate builder that was given contract to redevelop Patra Chawl project in Goregaon.
The New Indian has accessed the copy of ED’s plea — that makes damning accusations of quid pro quo between 2010 to 2022 against the Shiv Sena leader — before the court while seeking his custodial interrogation.
ED plea says that one Pravin Raut — who was one of the directors of Guru Ashish Constructions Pvt — during the period (2007-2013) and was actively involved in execution of Tripartite agreement with Maharashtra Housing and Area Development Authority (MHADA) for redevelopment of 47-acre Patra chawl in Goregaon – was the front man for Sanjay Raut.
“Investigation had revealed that Pravin Raut is a close confidante and associate of Sanjay Raut, he uitilised his proximity with Raut for obtaining the approval for MHADA and other advantage best to themselves. These are evident from statements of other witness, ” ED said.
It further disclosed that during the redevelopment project Sanjay Raut purchased 10 land parcels under eight agreements situated at Kihim Beach in Alibaug.
The plea alleges that proceeds of crime to the tune of ₹1 crore was invested in assets between 2009-2011.
“Being a very influential person and given his proximity to Sanjay Raut, Pravin Raut received proceed of crime of around Rs 112 crore and there is every likelihood that Sanjay Raut has received more proceed of crime during that period,” it said.
ED also alleged that Sanjay Raut has threatened the sellers to sell their land situated at Kihim beach, Alibaug. Further, he has also threatened the witnesses who have deposed before ED,
ED told court that Raut maintained that only “through the wives of his and that of Pravin, the two men came close”.
“When asked about receipt of amounts in his bank account and bank account of his wife, he (Sanjay Raut) failed to give any valid explanation. He also failed to furnish any document relating to the transactions,” the ED said.
“Sanjay Raut projects the amount of PoC of around ₹1 crores as untainted property invested in acquiring assets,” the ED has said.
It also said that these agreements were made in the name of one Swapna Patker and Varsha Raut (Sanjay Raut’s wife).
ED also disclosed that one Swapna Patkar – wife of Sanjay Raut’s business associate Sujit Patkar — in her statement has stated that for acquiring these plots, cash amounts were paid to sellers whose land was acquired to redevelop the 47-acre project.
“Some of the sellers have confirmed receipt of these cash components above the cheque amount received in these transactions. The source of cash payment made is from Pravin Raut,” ED said.
Varsha Raut was a teacher and Madhuri Raut wife of Pravin Raut was a housewife during the period when a firm ‘Avani Infrastructure’ was setup.
“Company (like Avani ) was set up by Sanjay Raut and Pravin Raut to route the proceeds of crime generated from Patra Chawl project to project it as untainted,” ED told court.
“Investigation so far has revealed that apart from above discussed proceed of crime of more than Rs 1 crore, the cash component paid for acquiring plots in Alibagh was also sourced from Pravin Raut. Pravin also bore the overseas and domestic holiday tours expenses of the family of Sanjay Raut during the said period,” the ED said.
“That Varsha Raut had also received Rs 13,95,611 for investment of Rs 56,251- only in firm ‘Avani Infrastructure. Thus the profit earned by Varsha Raut is nothing but adjustment entry/ payment received from Pravin Raut as source of funds of Madhuri Raut is Pravin Raut” the ED said.
The ED also said that on July 31 this year during search at two premises located at Dadar and Bhandup East of Sanjay Raut was conducted which resulted in seizure of documents from both the premises. “Further unaccounted cash amounting to Rs 11.50 lakhs were seized from his residence at Bhandup,” the ED said.
“That Sanjay Raut and Pravin Raut have played a key role in the execution of said illegal transactions and have actively participated in siphoning of proceeds of crime resulted from the criminal activity related to scheduled offence. Sanjay Raut is an actual beneficiary of the said proceeds of crime,” the ED said.
“In view of the investigation so far, and the facts found therein, I have come to the conclusion that the custody of the accused is necessary. But I do not agree to give eight days’ custody. Hence the accused is given four days of ED custody,” the court told the ED which was seeking an eight-day custody.
ED also told the court that it registered a case of money laundering on September 8 last year against Rakesh Kumar Wadhawan, Sarang Wadhawan, both Directors of Guru Ashish Construction Pvt Ltd. and HDIL and others based on the FIR registered by the EOW, Mumbai in March 2018 in pursuance of the complaint by Nitin Gadkari, Executive Engineer, MHADA, Mumbai.
ED argued that during the course of investigation it is revealed that Rakesh Wadhawan, Sarang Wadhwan and others vacated tenants of “Patra chawl” for redevelopment and construction of houses for them.
It alleged that instead of providing houses to these needy and displaced residents of Patra Chawl, they cheated the tenants and MHADA by illegally selling the FSI to third party developers.
ED also said that on February 1, 2022 during search at residential premise of Pravin Raut resulted in seizure of documents.
“In pursuance thereto Pravin Raut was questioned and his statement was recorded,” ED said in its submission before the court.
“PMLA investigation revealed that he has received ₹112 crores from HDIL,” ED further said.
It further said that on being asked about receipt of ₹112 crore during 2010 from HDIL, Pravinn stated that among this amount, ₹50 crore was received against sale of sweat equity and the remaining from land deal at Palghar.
“However, he failed to explain the rationale for receiving such huge funds without any investment even at the nascent stage of the project. Furthermore even the CFO of HDIL group of companies Darshan Majmudar has denied issuance of sweat equity to Pravin Raut,” the ED alleged.
ED said, “From the PMLA investigation conducted, it has been ascertained that Shiv Sena leader Sanjay Raut, Pravin Raut, Rakesh Kumar Wadhawan and Sarang Wadhawan conspired together and hatched a conspiracy to siphon off monies from this project without completing the project and jeopardizing the future of 672 tenants whose dwellings had already been demolished.”
ED also said that further as per the Deed of Confirmation and Modification Agreement on November 3, 2011 entered into between Developer, MHADA and Society the estimated cost of construction of the whole project was ₹1,017 crores and the rehabilitation portion was to be completed first.
After receiving the money surreptitiously, rather than investing the money thus received in the Patra Chawl project, Guru Ashish Constructions Pvt Ltd siphoned off the money and the project remains incomplete till date, the ED said.
Thus the tenants, MHADA and the builders (who purchased the FSI) were all cheated by Guru Ashish Construction Pvt Ltd and Guru Ashish Construction Pvt Ltd divested and siphoned off funds thus received, the ED alleged.
ED further said that Pravin did not invest any money in the project.
“Money trail revealed that during the period 2010-2011 Pravin received around ₹112 crores in his bank account from HDIL. These amounts were further transferred to various accounts apart from utilizations of the some of these amounts in diverting for acquiring assets.
“Among the proceed of crime of around ₹112 crores, ED has so far traced proceed of crime amounting to ₹1.06 crore being transferred to the bank account of Sanjay Raut, his wife Varsha Raut,” the ED alleged.
ED argued that Pravin Raut being the frontman of Sanjay Raut, he utilised his proximity with the Shiv Sena leader for obtaining the approval from MHADA and other advantages best known to themselves.
ED said, “Sanjay Raut was examined and his statement was recorded on July 1, 2022 wherein be denied knowledge of involvement of Pravin Raut in Patra Chawl project. He went on to state that he came in contact with him during 2012-13.”