Khichdi ‘scam’: ED attaches assets worth ₹88.51L linked to Suraj Chavan

For this, Chavan allegedly received tainted funds amounting to ₹1.35 crore out of the proceeds of crime, ED sources said. They added that the vendor in turn defrauded the civic body by supplying khichdi packets of lesser quantity

MUMBAI: The Enforcement Directorate (ED) has provisionally attached immovable properties worth ₹88.51 lakh belonging to Shiv Sena (UBT) functionary Suraj Chavan, arrested in connection with alleged irregularities in awarding contract for distribution of Khichadi by the Brihanmumbai Municipal Corporation (BMC) to migrant labourers and homeless people during Covid-19 pandemic. Sources said the seized properties are in the form of a flat in Mumbai and an agricultural land parcel in Ratnagiri district.

Mumbai, India – June 26, 2023: Shiv Sena (UBT) leader Suraj Chavan arrives to appear before the Enforcement Directorate for questioning in BMC COVID scam case, at Ballard Pier, in Mumbai, India, on Monday, June 26, 2023. (Photo by Bhushan Koyande/HT Photo) (Hindustan Times)

ED had initiated its money laundering probe based on the First Information Report registered by the Agripada police station following a preliminary enquiry conducted by the Economic Offences Wing of the Mumbai police.

ED’s investigation revealed that Chavan played a role allegedly in obtaining civic work orders in favour of the vendor, M/s Force One Multi Services, while circumventing the eligibility criteria laid down by BMC.

For this, Chavan allegedly received tainted funds amounting to ₹1.35 crore out of the proceeds of crime, ED sources said. They added that the vendor in turn defrauded the civic body by supplying khichdi packets of lesser quantity.

In his statement to the ED on January 17, Chavan allegedly said that funds worth ₹1.35 crore came into his account and of his partnership firm. Chavan, however, denied any wrongdoing in the case on his part and claimed that the money he received from the vendor firm was only by way of salary and loans in the capacity of him being its employee.

The said proceeds of ₹1.35 crore were acquired by Chavan allegedly in the guise of salary and loan from M/s Force One Multi Services and they were diverted to acquire the attached immovable properties in Mumbai and Ratnagiri in his personal name, an ED source said.

Earlier, on January 17, Chavan was arrested by ED for his alleged involvement in the offence of money laundering and is currently under judicial custody. ED submitted its prosecution complaint (chargesheet) against Chavan on Friday in a special court in the city.