Pune land scam: ED grills NCP leader Eknath Khadse for nine hours

He was earlier summoned and subsequently questioned by ED in January this year, a few months after he left the BJP and joined NCP. However, as new facts emerged, the agency wanted to interrogate him again

Enforcement Directorate (ED) officers on Thursday questioned Nationalist Congress Party (NCP) leader Eknath Khadse for around nine hours at the agency’s Ballard Estate office in south Mumbai in an alleged money laundering case pertaining to a land in Bhosari, Pune. The politician and his family are accused of defrauding the government exchequer of ₹61.25 crore.

Eknath Khadse. (Anshuman Poyrekar/HT Photo)

The case pertains to the purchase of a plot at Bhosari village in Haveli taluka on April 28, 2016, by Khadse’s kin for ₹3.75 crore against the prevalent market rate of ₹31 crore.

Previously, Khadse had been questioned by ED in January. However, as new facts have emerged in the investigation, the central agency quizzed him for the second time.

Khadse had joined NCP last year after exiting the Bharatiya Janata Party (BJP).

His son-in-law, Girish Chaudhari, was arrested by ED on Wednesday in the same case. A special Prevention of Money Laundering Act (PMLA) court on Wednesday sent Chaudhari in ED’s custody till July 12. The agency on Thursday questioned Khadse with Chaudhari together, ED sources said.

The senior NCP leader left ED office around 8pm and did not interact with mediapersons. His statement was also recorded by ED, his lawyer said.

ED sources said that Khadse was quizzed regarding his role in the alleged illegal purchase of the Bhosari land as well as the fudging of records at the registration office. ED officers also questioned him regarding the alleged abuse of power and misuse of his official position as then revenue minister and forcing the registration officials concerned to reflect the market value of the said as 3.75 crore.

He was also questioned about his role in allegedly suppressing the true market value of the land in the public and illegal changes/alterations in the government records, agency sources said.

Khadse was also quizzed regarding some meetings that took place in 2016 between the accused in the case, including Chaudhari. ED officers also tried to find out if the former minister has any knowledge about the five shell companies which were used in layering of funds to purchase the said land.

Khadse’s lawyer Mohan Tekavade, while speaking to mediapersons outside ED office, said, “We have been asked to submit certain documents, which we’ll provide within 10 days. No other summons has been issued. We will co-operate with the investigation and attend when required by ED.”

Before entering ED office in the morning, Khadse had told journalists: “It’s a politically-motivated case. Earlier, five agencies had probed the same case and found nothing against me. [But] I will co-operate with ED.

He had earlier also claimed that the investigations in the case, including those carried out by state anti-corruption bureau (ACB) and Income Tax department, had found no irregularities in the transaction. He had also claimed that the central agency was put after him because he left BJP to join NCP.

Khadse’s wife Mandakani and the Bhosari land’s owner Abbas Rasalbhai Ukani Bhosari were also booked in the case by ED on August 28, 2019.

ED’s case is based on the complaint filed by Maharashtra ACB against the Khadse’s in 2017. ACB had later closed the case, but ED continued its investigation into the alleged financial irregularities in the land deal.

The plot’s ownership was contentious as the industries department acquired it in 1971, but the final award of the land was not made, and the owner had not been compensated for it.

According to ED’s case Khadse and his family, despite having knowledge that the said plot is reserved for Maharashtra Industrial Development Corporation (MIDC), fraudulently purchased it so that when MIDC would acquire it, they can claim compensation of the said property from the revenue authorities and receive compensation of more than double the market rate.

ED said that Khadse, as the then revenue minister, mobilised the revenue officer for MIDC to acquire the land so that his family could file for compensation of the plot.

“As per the valuation of the land provided by the sub-registrar, it [price of land] comes to ₹31.01 crore. However, it appears that Khadse, by abusing and misusing his official position, coerced and forced the registration officials concerned to reflect the market value of the said land as ₹3.75 crore,” ED stated in their remand application on Wednesday.

Khadse, his wife and his son-in-law have suppressed the true market value of the said land from the public, ED added.

The act of deleting and omitting the true market value of the said property in the records by sub-registrar and reflecting the compromised market value prima facie reflects a criminal act of tampering and forging a valuable security by sub-registrar on the instruction of the revenue minister, the central agency stated.

While establishing the money trail, when ED officials asked Chaudhari about the source of funds for the land purchase, he said that he had availed a loan of ₹2 crore from Benchmark Buildcon Private Limited as he knew the firm’s chief director since 2003-04.

However, when ED scrutinised the balance sheet of Benchmark Buildcon Private Limited, it was revealed that the company did not have any operating income in 2014-15 and 2015-16, and only ₹1.5-lakh income was generated in 2016-17 from the revenue.

The probe further revealed that the company received funds from five other firms companies (Proficient Merchandise Ltd, Abjayoni Trading Pvt Ltd, Adamina Traders, Chemexgoods Pvt Ltd and Pearl Dealers Pvt Ltd) and transferred the amount to Chaudhari. These five companies exist only on paper and are shell companies used for layering of funds, ED said. This clearly shows that the source of the funds for the purchase of the said land is not genuine and has been routed through various companies by Chaudhari, the central agency said.

ED has claimed that at the time of land deal, Chaudhari was aware that the land is reserved for MIDC. But he claimed before ED officers that his lawyer had informed him that a no objection certificate (NOC) from MIDC was not required as the 7/12 of the land was in Ukani’s name.

Meanwhile, leader of Opposition in Maharashtra Assembly Devendra Fadnavis, who was in Nashik, said, “ED has begun a probe against Khadse. The agency will say whatever it wants to say about the probe. I am not a spokesperson for ED. The law is taking its course.” While reacting to Khadse’s allegations that BJP is taking action against him for joining NCP, Fadnavis said that there is no culture of indulging in vendetta politics in BJP.