PMLA court summons Ashok Kharat in ED’s money-laundering case

Special judge RB Rote directed the superintendent of Nashik Road Central Jail to produce the arrested self-styled godman before the court on May 18 in connection with the ₹70-crore money-laundering case

MUMBAI: A special court under the Prevention of Money Laundering Act (PMLA) on Monday issued a production warrant against Nashik-based self-styled godman Ashok Kharat after the Enforcement Directorate (ED) sought his arrest in an alleged extortion and money laundering case involving transactions of over ₹70 crore.

PMLA court summons Ashok Kharat in ED’s money-laundering case

Special judge RB Rote directed the superintendent of Nashik Road Central Jail to produce Kharat before the court on May 18 in connection with an Enforcement Case Information Report (ECIR) registered by ED against him.

The ED had told the court that Kharat and his associates were “prima facie involved in a series of grave and organised criminal activities involving sophisticated extortion carried out through a combination of religious manipulation, inducement and drug-facilitated acts”.

According to the agency, the money-laundering case stems from multiple FIRs registered by the Maharashtra police under provisions of the Bharatiya Nyaya Sanhita and the Maharashtra Prevention and Eradication of Human Sacrifice and Other Inhuman, Evil and Aghori Practices and Black Magic Act.

The ED alleged that Kharat cultivated followers by presenting himself as spiritually powerful and exploiting fear-based narratives. The agency alleged that Kharat “claimed to be an incarnation of Lord Shiva and adopted a ‘Captain’ persona to create an aura of authority and trust”. It further stated that he allegedly “created fear of death, black magic and divine wrath to induce compliance”.

The agency claimed Kharat induced victims to spend heavily on foreign travel, luxury vehicles, medical treatment and construction expenses before allegedly threatening them when they sought repayment. One complainant allegedly lost ₹4-5 crore.

The court order also reproduces allegations that Kharat administered “prasad or drinks laced with sedatives” to women and later used recordings to “blackmail victims and extort money”.

The ED further alleged that he staged “supernatural” demonstrations using “remote-controlled fake snakes and tiger skins” and sold ordinary items such as tamarind seeds as “blessed” objects for up to ₹1 lakh by claiming they had divine powers.

According to the ED, the investigation has uncovered 60 bank accounts and 48 linked fixed deposit accounts allegedly controlled by Kharat through nominees and associates. The agency alleged that transactions exceeding ₹70 crore had passed through these accounts, including cash deposits of more than ₹9.23 crore.

The ED alleged that Kharat “opened 60 bank accounts interlinked to 48 Special Saving Accounts (Fixed Deposits) using the documents of devotees and other individuals without their consent”.

The agency also alleged that Kharat used the proceeds of crime to acquire movable and immovable properties in his own name and in the names of relatives and associates, while routing funds through cooperative credit societies and real-estate transactions.

Seeking Kharat’s custody, the ED told the court that his arrest was necessary to “unearth the money trail”, identify beneficiaries of the alleged proceeds of crime and investigate possible “cross-border implications”.

Accepting the ED’s plea, the judge held that “the accused is required to be produced before this court” in connection with the money laundering investigation, and issued a production warrant.

Kharat, arrested in March, has already been in judicial custody for multiple predicate offences that a Special Investigation Team constituted by the state government is investigating. He allegedly targeted several women and businessmen through purported spiritual consultations, extortion schemes and coercive rituals.

Police investigations over the past two months have expanded into allegations of rape, extortion, cheating, black magic practices and illegal money-lending. Authorities earlier said the SIT had received dozens of complaints and leads linked to Kharat’s activities.

Kharat, a former merchant navy employee who styled himself as “Captain Kharat”, allegedly cultivated influence among politicians, businessmen and wealthy clients while operating trusts and spiritual organisations in Nashik and adjoining districts.

The ED had earlier conducted searches at multiple premises linked to Kharat in Nashik, Pune and Shirdi as part of its money-laundering probe.