Sanjay Raut was directly involved in Patra Chawl project right from start: ED

According to the charge-sheet filed by the federal agency on September 15, and details of which were made available on Monday, the Rajya Sabha member was involved in the redevelopment project since 2006

Mumbai: Shiv Sena leader Sanjay Raut was directly involved in the Patra Chawl redevelopment project “from the stage of conception to execution,” and GuruAshish Construction Private Limited director Pravin Raut was his proxy, the Enforcement Directorate (ED) has claimed in a supplementary charge-sheet filed in court.

Though Sanjay Raut had claimed that he came to know Pravin Raut only in 2012, GACPL replaced the earlier Shri Thakkar Developer involved in the project in 2006 itself, the charge-sheet claimed (Bhushan Koyande)

The Special Prevention of Money Laundering Act (PMLA) court on Monday extended Sanjay Raut’s judicial custody by 14 days in connection with the Patra Chawl land scam case. The court will hear the bail plea of the Shiv Sena leader on Wednesday.

According to the charge-sheet filed by the federal agency on September 15, and details of which were made available on Monday, the Rajya Sabha member was involved in the redevelopment project since 2006 and an agreement was executed in August that year between GuruAshish Construction Pvt Ltd (GACPL) and the tenants’ federation, Goregaon Siddharth Nagar Sahakari Gruh Nirman Sanstha Ltd.

Furthermore, though Sanjay Raut had claimed that he came to know Pravin Raut only in 2012, GACPL replaced the earlier Shri Thakkar Developer involved in the project in 2006 itself, the charge-sheet claimed.

“During the year 2006-07, Sanjay Raut attended meetings along with Maharashtra Housing and Area Development Authority (MHADA) officers and others for redevelopment of Patra Chawl, chaired by the then Union Agriculture Minister (Nationalist Congress Party chief Sharad Pawar) and another meeting chaired by a former chief minister. (…)Thereafter, Rakesh Wadhawan (of Housing Development and Infrastructure Limited) was brought into the picture to redevelop Patra Chawl through Guruashish Construction Pvt Ltd and in order to keep control over the project, Sanjay Raut inducted Pravin Raut as his proxy and close confidante,” the charge-sheet stated.

According to the ED, Sanjay Raut had denied having any knowledge of the Patra Chawl project.

GACPL is a sister company of Housing Development and Infrastructure Limited (HDIL), a real estate company, whose directors Rakesh Wadhwan, and his son, Sarang, are also in ED custody. According to the terms of agreement entered into with the Siddharth Nagar society and MHADA, GAPCL was to rehabilitate 672 tenants and provide MHADA a constructed built-up area of 111,467.82 square metres. In turn, it was entitled to develop the free sale component on the land and sell flats to third party purchasers.

“However, GACPL sold the free sale FSI (floor space index) before completing its obligation. The sale proceeds of FSI amounting to ₹1,034 crore were siphoned off to companies of HDIL group for business purposes while the obligation with regard to the tenants and MHADA remained unfulfilled,” the ED stated.

An investigation of the money trail revealed that ₹112 crore was transferred to Pravin Raut in 2010-11. The agency also claimed that large sums of cash were withdrawn from HDIL accounts, and reached Sanjay Raut.

“There are instances of cash withdrawals amounting to ₹13.60 crore out of the POC (proceeds of crime)...These cash withdrawals have reached Sanjay Raut through Pravin Raut,” the charge-sheet stated.

The ED had arrested Sanjay Raut late on July 31 in connection with alleged financial irregularities in the redevelopment of Patra chawl. The money received from Pravin Raut through various means were purportedly used by the MP to buy 10 plots of land in Kihim, a coastal village near Alibaug. The ED also stated that Sanjay Raut had plans to construct a resort on 3,686 sq m. He reportedly paid cash to the owners of plots in Kihim well above the market price. The agency also claimed to have found one “accommodation entry” in bank accounts of Sanjay Raut – an amount of ₹12.41 lakh received from one Kanti Bhai, a Dadar resident who owns G’Diam Jewels in Zaveri Bazar. The agency said neither the Kanti Bhai resides at the address given nor the jewellery shop is found anywhere in Zaveri Bazar.

Sanjay Raut however claimed that the amount received by Pravin Raut from HDIL was not tainted money and since no tainted money was involved in the entire transaction, he cannot be prosecuted for money laundering. The Sena leader also said that since Pravin Raut had not signed any agreements with the developers to whom FSI of the free sale component was allegedly sold to, no amount allegedly misappropriated from the project was found to be deposited in Pravin Raut’s bank accounts.