Ashok Kharat remanded to ED custody up to May 26

The ED had sought 10 days’ custody, contending that Kharat’s interrogation was necessary to trace the proceeds of crime, identify beneficiaries of the alleged laundering network and investigate the flow of funds through multiple proxy and benami accounts

MUMBAI: A special Prevention of Money Laundering Act (PMLA) court on Wednesday granted the Enforcement Directorate (ED) custody of self-styled godman Ashok Kharat till May 26, holding that his custodial interrogation was “absolutely necessary” to unravel what the agency described as a sophisticated network of benami bank accounts, fixed deposits and alleged laundering of extorted funds linked to him.

Mumbai, India. May 20, 2026 - Self-styled godman Ashok Kharat was produced before the ED court in Mumbai after his arrest by the Enforcement Directorate in a ₹70 Crore money laundering case linked to alleged religious fraud across Maharashtra. Mumbai, India. May 20, 2026. (Photo by Raju Shinde/HT Photo) (Raju Shinde)

Special judge Chakor S Baviskar passed the order after the ED formally arrested Kharat on Tuesday in connection with an alleged ₹70-crore extortion and money-laundering racket linked to multiple rape, cheating and sexual exploitation cases registered against him in Maharashtra. Kharat was produced before the court from judicial custody in the predicate offences related to rape and cheating, registered by the Nashik police.

The ED had sought 10 days’ custody, contending that Kharat’s interrogation was necessary to trace the proceeds of crime, identify beneficiaries of the alleged laundering network and investigate the flow of funds through multiple proxy and benami accounts. The court, however, granted the agency custody till May 26.

The court said the allegations against Kharat were “quite serious” and had “wide magnitudes”. It noted that the Nashik-based self-styled godman had opened a total of 94 proxy bank accounts in various names, with him as the nominee.

The judge further noted that 32 benami fixed deposit accounts with large amounts from 2014 to 2024, linked to Kharat, have also surfaced. At the present stage of the investigation, the total amount exceeds ₹3 crore, he added.

The court said several witnesses were yet to be examined and confronted with Kharat, and that “huge documentary evidence” remained to be analysed. “A huge amount is allegedly collected by the accused. It is to be traced out where ultimately it is parked. The source of unaccounted cash flow is also to be traced out,” the order said.

Referring to the alleged banking network, the judge observed that accounts had been allegedly opened at various financial institutions without following due process and without proper KYC documentation, through which “huge amounts were deposited and withdrawn”.

“...the sophisticated network of various benami transactions is to be unearthed. Direct, active and controlling roles at each stage of the money laundering process has to be investigated,” the court said.

“Considering the magnitude of the investigation and wide network behind the offences, in my opinion, custodial interrogation of the accused is absolutely necessary,” it added.

At the same time, the court declined to grant the full 10-day custody sought by the ED, observing that much of the evidence was documentary in nature and already within the agency’s reach. “The offences are having documentary evidence as such. The investigating agency knows the maximum source of the documentary evidence,” the court noted, while limiting custody till May 26.

Advocates Niranjan Mundargi and Keral Mehta, appearing for Kharat, opposed the ED’s demand for prolonged custody. “The ED sought 10 days’ custody on the basis of the predicate offence involving alleged extortion from one complainant. During the hearing, however, the agency expanded its case by referring to multiple bank accounts and alleging a larger money laundering case. Our submission was that the agency must substantiate those allegations with concrete material, including identifying the alleged account holders and victims,” Mehta said.

The ED’s money-laundering case stems from FIRs registered by the Nashik police, accusing Kharat of extortion, cheating, criminal intimidation, religious manipulation and drug-facilitated sexual assault of women devotees.

The Nashik police arrested Kharat on March 18 after a woman accused him of repeatedly raping her over a period of three years. Subsequently, multiple FIRs alleging rape, sexual exploitation, cheating and financial fraud were filed against him in Nashik and Ahilyanagar districts.

The ED registered an Enforcement Case Information Report (ECIR) under the PMLA on April 6 and later moved the special court seeking Kharat’s production warrant from Nashik jail, contending that custodial interrogation was necessary to uncover the “larger conspiracy”, identify beneficiaries and trace the money trail.

Investigators have alleged that Kharat exploited women followers and devotees under the guise of spiritual healing and supernatural powers, induced them to part with large sums of money through threats and rituals, and sold ordinary household items such as tamarind seeds and honey as “blessed” objects.