The Directorate of Enforcement (ED), Mumbai, has made significant strides in the investigation of the Patra Chawl Redevelopment case, unearthing a web of financial misconduct by GACPL and money laundering. The provisional attachment of immovable properties worth Rs 73.62 Crore marks a pivotal development in the pursuit of justice under the Prevention of Money Laundering Act (PMLA), 2002. Here’s a detailed look at the case and the role of M/s Guru Ashish Construction Pvt Ltd (GACPL) in it.
Background of Patra Chawl Case
The Patra Chawl Redevelopment case revolves around irregularities in the redevelopment of the Patra Chawl Project in Goregaon, Mumbai. This redevelopment was spearheaded by M/s Guru Ashish Construction Pvt Ltd (GACPL), which has now come under the ED’s scanner.
The Misconduct
ED’s investigation revealed significant financial misconduct on the part of M/s GACPL. The company, entrusted with the Patra Chawl Project’s redevelopment for the rehabilitation of 672 tenants, allegedly engaged in fraudulent activities.
Tripartite Agreement of GACPL
A tripartite agreement was signed between the society, Maharashtra Housing and Area Development Authority (MHADA), and GACPL. According to this agreement, GACPL was responsible for providing flats to the displaced tenants, developing flats for MHADA, and subsequently selling the remaining land area. However, investigations revealed that the company misled MHADA and fraudulently sold the Floor Space Index (FSI) to nine developers, collecting approximately Rs 901.79 Crore without fulfilling its obligations.
Diversion of Funds from GACPL
Part of the proceeds of crime (PoC), amounting to Rs 95 Crore, was allegedly diverted by Pravin Raut, Director of M/s GACPL, to his personal bank accounts. This money was then used for various purposes, including the acquisition of land parcels, direct purchases from farmers, and gifting properties to family members.
Enforcement Directorate’s Action
The Enforcement Directorate has been relentless in its pursuit of justice. It initiated the investigation based on an FIR registered by the Economic Offences Wing (EOW), Mumbai, against M/s GACPL and others. The ED’s investigation led to the provisional attachment of immovable properties worth Rs 73.62 Crore, belonging to Pravin Raut and his close associates.
Assets Attached
In addition to the recent attachment, the ED had previously attached assets worth Rs 11.15 Crore belonging to Pravin Raut and Sanjay Raut. Furthermore, assets amounting to Rs 31.50 Crore, located in Goa and belonging to Rakesh Kumar Wadhawan and Sarang Wadhawan, were also attached by the ED.
Also read
- ED attaches assets worth Rs 31.50 Crore of Guru Ashish Construction Pvt Ltd directors in Patra Chawl redevelopment case
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- ED Seizes Rs. 315.60 Crore Assets of Rajmal Lakhichand Jewelers and Others in Bank Fraud
Legal Proceedings
Pravin Raut and his associate Sanjay Raut were arrested under PMLA for their involvement in money laundering. They were granted bail by the Hon’ble Special Court under PMLA on 09.11.2022. The Enforcement Directorate has filed a Prosecution Complaint against Rakesh Kumar Wadhawan, Sarang Wadhawan, Pravin Raut, and M/s Guru Ashish Construction Pvt Ltd. Additionally, a supplementary Prosecution Complaint was filed against them, including Sanjay Raut. The Special PMLA Court has taken cognizance of the case.
The Patra Chawl Redevelopment case stands as a stark reminder of the rampant financial misconduct and money laundering prevalent in the real estate sector. The Enforcement Directorate’s unwavering commitment to unraveling such scams and bringing the perpetrators to justice is commendable, and it serves as a deterrent to those engaging in similar fraudulent activities. As the legal proceedings unfold, the spotlight remains firmly on M/s Guru Ashish Construction Pvt Ltd (GACPL) and its key players, awaiting justice to be served.
Enforcement Directorate is investigating further in this case
