Maharashtra: Proof shows Shiv Sena MP Sanjay Raut's money laundering role, says ED

MUMBAI: Opposing the bail plea of Sanjay Raut in a money laundering case related to Patra Chawl, the ED told the special court on Monday that the Shiv Sena MP had taken an active interest in the redevelopment project and was even present at meetings on it. The prosecution has completed its arguments.
Raut, arrested on July 31, was produced before special judge M G Deshpande, who extended his judicial custody.
Calling Raut an influential person, the ED submitted that the economic offences involving him were serious and investigations were on. Reading out statements of witnesses, the prosecution said, "All the material on record shows the involvement of the applicant in money laundering."
The ED, in its chargesheet, had said that in 2006-07, Raut had attended meetings, one of them with Mhada officers. Thereafter, developer Rakesh Wadhawan, through Guru Ashish Construction Pvt Ltd (GACPL), was brought in to execute the redevelopment, the ED's supplementary chargesheet said. The agency's case is that to "exercise control", Raut inducted his "aide and confidant" Pravin Raut as director of GACPL, which then sold massive free sale component of FSI in the project to other builders for Rs 1,034 crore. This, the ED contended, amounted to proceeds of crime from which Raut and his family utilised funds for domestic and foreign trips and acquired assets.
During Monday's arguments, the ED submitted that receipts procured during its probe and the statements recorded showed that the chawl belonged to Mhada. It further said as per the redevelopment plan, 672 tenants were to be rehabilitated with their homes being demolished. Until the construction was completed they were to be given rent. It said the tenants had been out of their homes for several years now. It alleged that huge loans were obtained from banks but not used for the project. "It is public money, so financial institutions have suffered," it submitted.
According to it, Pravin Raut was an associate of the Sena MP and had even acted as his proxy. It further alleged that Pravin was given 25% in the project without any investment and this was done only due to his proximity to the politician. The ED iterated that the total proceeds of the crime was Rs 112 crore.
While Raut has sought bail citing health issues, the ED said he could be given treatment when required.