Enforcement Directorate Attaches Properties Worth Rs 73.62 Crore in Patra Chawl Redevelopment Case Amid Major Fraud Investigation
(Judicial Quest News Network)
The Directorate of Enforcement (ED) in Mumbai has provisionally attached immovable properties valued at Rs 73.62 crore in connection with the Patra Chawl Redevelopment case. This action falls under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The case involves irregularities in the redevelopment of the Patra Chawl Project in Goregaon, Mumbai, which was undertaken by M/s Guru Ashish Construction Pvt Ltd (GACPL). The attached assets include various land parcels belonging to Pravin Raut and his associates, located in and around Palghar, Dapoli, Raigad, and Thane.
The ED initiated its investigation based on a First Information Report (FIR) filed by the Economic Offences Wing (EOW), Mumbai, under several sections of the Indian Penal Code (IPC), 1860. This FIR named M/s GACPL, Rakesh Kumar Wadhawan, Sarang Kumar Wadhawan, among others, and was based on a complaint filed by the Executive Engineer of the Maharashtra Housing and Area Development Authority (MHADA), Mumbai, along with a chargesheet dated December 11, 2020.
The ED’s investigation revealed that M/s GACPL, responsible for redeveloping the Patra Chawl Project to provide housing for 672 tenants, engaged in significant financial misconduct. According to a tripartite agreement among the society, MHADA, and GACPL, the developer was supposed to provide flats to 672 tenants, build additional flats for MHADA, and then sell the remaining land. However, the directors of M/s GACPL allegedly misled MHADA and sold the Floor Space Index (FSI) to nine developers, collecting approximately Rs 901.79 crore without constructing the rehabilitation flats for the displaced tenants and the additional flats for MHADA.
Further investigation by the ED revealed that part of the proceeds of crime, totalling Rs 95 crore, was diverted by Pravin Raut, a director at M/s GACPL, into his personal bank accounts. Portions of these funds were used to acquire various land parcels either in his name or through his firm M/s Prathmesh Developers. Some of the misappropriated funds were also transferred to associates and used to purchase properties, some of which were later gifted to family members. These assets, with an estimated value of Rs 73.62 crore, were provisionally attached by the ED.
Previously, the ED had attached assets valued at Rs 11.15 crore belonging to Pravin Raut and Sanjay Raut, along with assets worth Rs 31.50 crore owned by Rakesh Kumar Wadhawan and Sarang Wadhawan in Goa. With the latest action, the total value of attached assets in this case now stands at Rs 116.27 crore.
During the investigation, Pravin Raut and his associate Sanjay Raut were arrested under PMLA on February 2, 2022, and August 1, 2022, respectively, for their involvement in money laundering. Both individuals are currently out on bail granted by the Hon’ble Special Court under PMLA on November 9, 2022.
The ED has filed a Prosecution Complaint on March 31, 2022, before the Special Court for PMLA against Rakesh Kumar Wadhawan, Sarang Wadhawan, Pravin Raut, and M/s Guru Ashish Construction Pvt Ltd. Additionally, a supplementary Prosecution Complaint was filed on September 15, 2022, naming Rakesh Kumar Wadhawan, Sarang Wadhawan, Pravin Raut, Guru Ashish Construction Pvt Ltd, and Sanjay Raut. The Special Court for PMLA has taken cognizance of these complaints.
Further investigation is ongoing.
