ED records complainant’s statement in probe against Purshottam Chavan

The businessman’s statement was recorded under provisions of the Prevention of Money Laundering Act (PMLA) at ED’s office at Ballard Estate in south Mumbai

MUMBAI: The Enforcement Directorate (ED) on Monday recorded the statement of a 57-year-old businessman and complainant in a money laundering case against Purshottam Chavan, husband of a Maharashtra cadre Indian Police Service officer, and others. The businessman had complained that he and 18 others were duped of ₹24.78 crore by Chavan and other accused who promised them homes at cheap rates under various government schemes.

(Shutterstock)

The businessman’s statement was recorded under provisions of the Prevention of Money Laundering Act (PMLA) at ED’s office at Ballard Estate in south Mumbai. He was at the ED office from around 12.30pm to 9.30pm and told investigators that was introduced to Chavan in December 2019 and Chavan visited his house in Colaba a few months later in 2020 to get his signature on an agreement for sale of a 3-bedroom flat in Prabhadevi. He further said that Chavan had claimed that the sale process of flats under government schemes was prolonged and had advised him to keep the matter confidential and not take any photocopies of signed documents.

In all, the businessman had paid Chavan around ₹3.33 crore for the 3-bedroom flat that was worth around ₹7-7.5 crore in the open market, he told investigators.

The businessman’s advocate, Mohan Tekavde, who accompanied him to the ED office, told HT, “The proceeds of crime were converted into untainted property by committing forgery and cheating.”

An ED official said that the agency would take the required steps soon.

The ED began probing the case after registering an ECIR (Enforcement Case Information Report) based on two first information reports (FIR) registered by the Economic Offences Wing (EOW) of Mumbai police in January and February this year, said ED officials.

One of the EOW FIRs pertained to the businessman and 18 others being duped by Chavan while the other was related to Chavan and other accused duping a few persons of ₹7.42 crore by promising them plots of land owned by the government and the Bombay Port Trust at discounted rates.

The EOW cases were registered under sections of the Indian Penal Code pertaining to cheating, criminal conspiracy, cheating by impersonation, forgery, forgery of valuable securities, wills, and other important documents, punishment for forgery committed with the intention of cheating and use of a forged document or electronic record as genuine.

Last May, the ED had arrested Chavan in a separate money laundering case related to alleged fraudulent withdrawal of TDS (Tax Deducted at Source) refunds worth ₹263.95 crore from the Income Tax department. Chavan was arrested for alleged possession, concealment, and diversion of a part of the proceeds of crime in the case, and is currently in judicial custody.

During searches at Chavan’s Mumbai residence in 2024, the ED had unearthed documents of properties registered in the name of different individuals and Transfer of Development Rights (TDR). After thorough scrutiny, which included verification with state government authorities and banks, the ED discovered that all the recovered documents, except two, were dubious, said agency sources.

Chavan has denied all allegations against him in the ED probe.