‘Gangster may have funded terror acts with laundered cash’

The Enforcement Directorate (ED) on Tuesday said that it suspects money laundered through three properties in the city by Dawood Ibrahim’s former aide Iqbal Mirchi

The Enforcement Directorate (ED) on Tuesday said that it suspects money laundered through three properties in the city by Dawood Ibrahim’s former aide Iqbal Mirchi may have been used to fund terrorist acts.

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Two accused who were arrested in the case last week — British national Haroun Yusuf and city-based businessman Ranjeet Bindra — were brought before the special Prevention of Money Laundering (PMLA) court on Tuesday. The ED said they no longer needed custody of Yusuf and pleaded that he be taken into judicial custody. However, they sought further custody of Bindra. “During the probe, we traced evidence that these properties are valued at more than ₹2,000 crore. We have found that there were meetings outside India for the deals of the properties linked to Mirchi. There is a link to terror funding from the proceeds of crime,” argued Hiten Venegaokar counsel for the ED. The agency was referring to three properties — Sea View, Marium Lodge, and Rabia Mansion — that Mirchi had bought in 1986 from the Mohammad Yusuf Trust, of which Yusuf was the chairman.

In 2010, Mirchi signed agreements for the redevelopment of these properties and Bindra had played the role of a broker between Mirchi and the developer, for which he was to receive ₹40-50 crore, said ED. During his interrogation, Bindra revealed that the developer made transactions worth ₹2,186 crore and took loans on these properties.

Defence lawyer Abad Ponda challenged the basis of the allegations and argued that the properties were bought before the crimes were allegedly committed. The agency had also considered Yusuf’s statement as a confession. Ponda claimed it was extracted under pressure.