Khichadi case: PMLA court extends Suraj Chavan’s ED custody till January 25

Shiv Sena functionary Suraj Chavan, arrested in a money laundering case related to irregularities in the distribution of Khichadi by the BMC, will remain in Enforcement Directorate custody until January 25. The ED argued that further custodial interrogation was necessary to uncover the trail of funds and identify properties purchased with the proceeds of crime. Chavan is believed to be close to Aaditya Thackeray. The investigation began based on a Mumbai police FIR alleging irregularities in the distribution of Khichadi worth INR 6.37 crore.

MUMBAI: A special Prevention of Money Laundering Act (PMLA) court on Monday extended Enforcement Directorate (ED) custody of Shiv Sena (UBT) functionary Suraj Chavan till January 25. Chavan has been arrested by the agency in a money laundering case related to irregularities in the distribution of Khichadi by the Brihanmumbai Municipal Corporation (BMC) to migrant workers during the Covid-19 pandemic.

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Chavan, believed to be close to Aaditya Thackeray, was arrested on January 17 and was produced before the special court after his earlier custody remand ended on Monday when the special prosecutor for ED sought an extension of his custody remand, claiming that his further custodial interrogation was necessary.

“Sustained interrogation under custody is required to unearth the trail of funds, for corroboration and confrontation with other persons involved in the case. He served as a key link in the fraud. During the investigation, the accused has presented forged documents, to project himself as an employee of M/s Force One Multi Services and has wrongly claimed the acquired proceeds of crime, projecting the same as untainted money,” said the remand application filed by the special prosecutor Sunil Gonsalves.

“To camouflage his entire act, he submitted some appointment letters to the ED. However, the documents submitted by the accused are different from the ones submitted by the accountant. For example, the appointment letter submitted by the accountant states that the accused was appointed as the ‘vice president’ of M/s Force One Multi Services, but the letter produced by the accused stated that he was an ‘office executive.’ This shows that it is totally manipulated,” said Gonsalves.

The ED further argued that out of the total proceeds of crime (POC) of ₹3.64 crore, ₹1.35 crore was with the accused and he utilised this money to purchase immovable properties and the agency needs to identify the properties.

Advocate Harshad Bhadbhade opposed the plea for an extension of Chavan’s remand and argued that the forgery of the document was not being investigated. Assuring that Chavan had co-operated with the ED even before his arrest and will continue to cooperate, Bhadbhade said the documents sought by ED were with the BMC, and the custody of the accused was not required for securing the documents, and remand for just verification of some documents is not necessary.

The ED began its investigation based on a September 2023 FIR of the Economic Offences Wing (EOW) of the Mumbai police, alleging that there were irregularities worth ₹6.37 crore distribution of Khichadi. The ED’s investigation was part of a probe into the BMC’s expenditure on Covid-19 contracts.

The application added that BMC/MCGM paid ₹8.64 crore to M/s Force One Multi Services for supplying Khichdi packets, however, it resorted to illegitimate acts and illegally gained ₹3.64 crore of public money. It is further that the firm was engaged in the provision of sand, bricks and security, did not have its own kitchen and had no licence from the Department of Health or the Food and Drugs Administration. It added that it was because of his proximity with senior political leaders that Chavan had managed to get the contract awarded to M/s Force One Multi Services.

After hearing both sides, special judge MG Deshpande extended Chavan’s ED custody till January 25.