Shiv Sena MP Sanjay Raut took “active interest” in the Patra Chawl redevelopment project and there was material on record to show his involvement in the money laundering case, the Enforcement Directorate told a special court in Mumbai on Monday.
The ED on Monday completed its arguments on the Rajya Sabha MP's bail plea in the money laundering case pertaining to irregularities in the redevelopment of Patra Chawl in Goregaon in north Mumbai.
Raut was produced before special judge M G Deshpande at the end of his judicial custody on Monday and his jail custody was extended till Tuesday, when his bail plea will be further heard.
The Shiv Sena leader, who was arrested in July for his alleged role in the money laundering case, had sought bail from the special Prevention of Money Laundering Act court last month.
Opposing the plea, Additional Solicitor General Anil Singh submitted that the probe agency has records right from 2011, which show that Raut was involved in the Patra Chawl project.
Raut was present in the meeting (pertaining to the redevelopment project) and took active interest in the entire project, the ASG told the court, reading out the statement of a witness.
Singh claimed that there was material on record to show Raut's involvement in the money laundering case.
The ED probe pertains to alleged financial irregularities in the redevelopment of Patra Chawl, a tenement, and related financial transactions involving his wife and associates.
Siddharth Nagar, popularly known as Patra Chawl, in suburban Goregaon is spread over 47 acres and houses 672 tenant families.
In 2008, the Maharashtra Housing and Area Development Authority (MHADA) assigned a redevelopment contract for the chawl to Guru Ashish Construction Private Limited (GACPL), a sister company of HDIL (Housing Development and Infrastructure Ltd).
The GACPL was supposed to build 672 flats for tenants and give some flats to the MHADA. It was free to sell the remaining land to private developers.
However, according to the ED, the tenants did not get a single flat in the last 14 years, as the company did not redevelop Patra Chawl, but sold land parcels and floor space index (FSI) to other builders for Rs 1,034 crore.
The ASG, while making his submissions, reiterated the ED's claim that Raut was working behind the scenes through his "proxy" Pravin Raut, a co-accused in the case.
The Sena MP has not only misled the probe agency, but has also passed the blame on to others, he claimed, adding that even Raut's wife stated that he had conducted the transactions.
The probe agency further argued that not just the tenants, but even the MHADA and some financial institutions have suffered due to the scam.
“We are concerned about the larger interest of the public. The structure demolished and the tenants have been out of home for several years. The building of the MHADA is not constructed. There were huge loans obtained from financial institutions, money has not been paid, it is public money, so financial institutions have also suffered,” the ASG submitted.
The ED informed the court that as of today, the Sena MP had received Rs 3.27 crore of the total proceeds of crime.
The Sena leader and his aide Pravin Raut might have received more proceeds of crime, it stated.
According to the probe agency, the POC received by Raut was in two parts, one was about Rs 1.06 crore, for which they tried to give some explanation, and for the remaining Rs 2.02 crore there was no explanation in the bail application.
The amount of Rs 1.06 crore, includes a payment of Rs 55 lakh, which the accused side claims was a friendly loan given to Raut's wife Varsha by his aide's wife and it has been repaid, it said.
The ASG submitted that the alleged loan was given in 2009-10 and it sought to be returned in December 2021. The loan was repaid after she (Varsha) received a summons in another case.
He claimed that for 10 years, there was not a single document to support their claim of friendly /unsecured loan.
The ASG further said that whoever was connected with the crime, whether for projection or concealing, the PMLA provisions are applicable.
Refuting Raut's claim about contradiction in the statement of witnesses, Singh said, “At this stage, we cannot conclude what the witness said is wrong. At this stage we cannot conduct a mini trial.”
Among others, the Sena leader has mentioned medical reasons as one of the grounds for seeking bail, citing that he has six stents in the heart.
The ASG submitted that as and when he has any medical problems, Raut can be treated at a hospital by a team of doctors. Ailment is not such that it makes out ground for grant of bail.
The probe agency argued that the economic offence is a serious offence and the investigation was open, and there was a question of tampering evidence and witnesses, as Raut was an influential person.
Advocate Ashok Mundargi is likely to make his submission for Raut on Tuesday.
