Directorate of Enforcement (ED), Mumbai has provisionally attached immovable properties worth Rs 73.62 Crore in Patra Chawl Redevelopment case under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. This case is related to irregularities in the redevelopment of the Patra Chawl Project in Goregaon, Mumbai, carried out by M/s Guru Ashish Construction Pvt Ltd (GACPL). The attached properties consist of several land parcels of accused Pravin Raut and his close associates in and around Palghar, Dapoli, Raigad and Thane.
ED initiated investigation on the basis of FIR registered by the Economic Offences Wing (EOW), Mumbai under various sections of IPC, 1860 against M/s GACPL, Rakesh Kumar Wadhwan, Sarang Kumar Wadhwan, and others, based on complaint filed by the Executive Engineer, MHADA, Mumbai and chargesheet dated December 11th 2020.
ED investigation revealed that M/s GACPL, entrusted with the redevelopment of the Patra Chawl Project for the rehabilitation of 672 tenants, has been involved in significant financial misconduct. A tripartite agreement was signed between the society, MHADA and GACPL wherein the developer (GACPL) was supposed to provide flats to 672 tenants, develop flats for MHADA, and thereafter sell the remaining land area. However, the directors of M/s GACPL misled MHADA and managed to sell the Floor Space Index (FSI) fraudulently to 9 developers, collecting an amount of Rs 901.79 Crore (approx.) without constructing the rehabilitation portion for the 672 displaced tenants and flats for the MHADA.
ED investigation revealed that a part of the PoC, amounting to Rs 95 Crore, was diverted by Pravin Raut, Director of M/s GACPL to his personal bank accounts. Part of the proceeds were utilized for acquisition of various land parcels directly from farmers or land aggregators in his own name or in the name of his firm M/s Prathmesh Developers. Also, part of PoC were parked by him with associated persons/ entities. Further, some properties acquired by Pravin Raut out of PoC, were later gifted by him to his family members. Such identified proceeds of crime in the form of land parcels acquired from farmers, gifted properties to family members and equivalent properties of siphoned off PoC to Pravin Raut and associates, have been attached in this PAO, amounting to Rs. 73.62 Crore.
Earlier in this case, assets worth Rs 11.15 Crore belonging to Pravin Raut and Sanjay Raut, were attached by ED which are found to be a part of the said PoC of Rs. 95 Crore received by Pravin Raut. Further, assets amounting to Rs 31.50 Crore of Rakesh Kumar Wadhawan and Sarang Wadhawan, in the form of properties situated at Goa were also attached by this office. Hence, ED has attached immovable properties amounting to Rs. 116.27 Crore in this case so far.
During the course of the investigation, Pravin Raut and his associate Sanjay Raut, were arrested under PMLA on February 2nd 2022 and August 1st 2022 for their involvement in the offence of money laundering. Presently, both the accused are on bail granted by the Special Court under Prevention of Money Laundering Act (PMLA) on November 9th 2022.
ED has filed a Prosecution Complaint on March 31st 2022 before the Special Court for PMLA against Rakesh Kumar Wadhawan, Sarang Wadhawan, Pravin Raut and M/s Guru Ashish Construction Pvt Ltd. Further, a supplementary Prosecution Complaint was also filed on September 15th 2022 before the Special Court under PMLA against Rakesh Kumar Wadhawan, Sarang Wadhawan, Pravin Raut, Guru Ashish Construction Pvt Ltd and Sanjay Raut. The cognizance of the same has been taken by the Special PMLA Court. Further investigation is under progress.
