The Enforcement Directorate (ED) today attached assets worth over Rs 11 crore belonging to Shiv Sena MP Sanjay Raut’s wife and his alleged close aide Pravin Raut under the Prevention of Money Laundering Act (PMLA). The financial probe agency was investigating a case around the alleged irregularities in a redevelopment project in Mumbai’s Goregaon suburb – the Patra Chawl scam.
What is the Patra Chawl Scam?
Pravin Raut, reportedly a close associate of Sanjay Raut, is a director of Guru Ashish Construction Pvt Ltd, involved in the redevelopment of the Patra Chawl in Goregaon. The 47-acre land, belonging to the Maharashtra Housing Area Development Authority (MHADA), housed 672 tenants.
Pravin Raut’s firm was entrusted with the development of Patra Chawal Project to rehabilitate 672 tenants. Guru Ashish Construction Pvt Ltd entered into a tripartite agreement with the tenants and the MHADA to redevelop the settlement.
Here’s when it all began.
According to the financial probe agency, Pravin Raut, along with Housing Development & Infrastructure Limited’s (HDIL) Rakesh Kumar Wadhawan, Sarang Wadhawan and other directors of Guru Ashish Constructions Private Limited, illegally sold Floor Space Index, or FSI, which is the maximum permissible floor area that a builder can build on a particular plot of land, to various builders for Rs 1,034 crore.
This they allegedly did without constructing rehab flats for handing over to the MHADA, a pre-requisite of the agreement.
“Investigations conducted under the PMLA revealed that Pravin Raut, being the director of Guru Ashish Construction Pvt Ltd, played an active role in the redevelopment project and in connivance with Rakesh Kumar Wadhawan and Sarang Wadhawan, managed to divert the proceeds of crime – of over Rs 1,000 crore – by harming the interests of 672 tenants and buyers,” the ED said in a statement. The agency’s case is based on an FIR filed by the Mumbai Police.
– Enforcement Directorate
In addition to the Rs 1,034 crore received from various builders, the accused also availed bank loans, the statement added.
ED officials alleged that in 2010, Pravin Raut had received Rs 95 crore in his bank account under the guise of equity sale and land deals even though the company could not complete the project and generated no income.
“Pravin Raut was found involved in the offence of money laundering and to unearth the money trail and the siphoned off funds which ran into over Rs 1,000 crore, he was arrested,” the ED said.
The probe agency has alleged that around Rs 100 crore was transferred from HDIL to Pravin Raut’s account.
Pravin Raut diverted this money into the accounts of his close associates, family members, business entities, and others, the ED said.
The Enforcement Directorate (ED) today attached assets worth over Rs 11 crore belonging to Shiv Sena MP Sanjay Raut’s wife and his alleged close aide Pravin Raut under the Prevention of Money Laundering Act (PMLA). The financial probe agency was investigating a case around the alleged irregularities in a redevelopment project in Mumbai’s Goregaon suburb – the Patra Chawl scam.
What is the Patra Chawl Scam?
Pravin Raut, reportedly a close associate of Sanjay Raut, is a director of Guru Ashish Construction Pvt Ltd, involved in the redevelopment of the Patra Chawl in Goregaon. The 47-acre land, belonging to the Maharashtra Housing Area Development Authority (MHADA), housed 672 tenants.
Pravin Raut’s firm was entrusted with the development of Patra Chawal Project to rehabilitate 672 tenants. Guru Ashish Construction Pvt Ltd entered into a tripartite agreement with the tenants and the MHADA to redevelop the settlement.
Here’s when it all began.
According to the financial probe agency, Pravin Raut, along with Housing Development & Infrastructure Limited’s (HDIL) Rakesh Kumar Wadhawan, Sarang Wadhawan and other directors of Guru Ashish Constructions Private Limited, illegally sold Floor Space Index, or FSI, which is the maximum permissible floor area that a builder can build on a particular plot of land, to various builders for Rs 1,034 crore.
This they allegedly did without constructing rehab flats for handing over to the MHADA, a pre-requisite of the agreement.
“Investigations conducted under the PMLA revealed that Pravin Raut, being the director of Guru Ashish Construction Pvt Ltd, played an active role in the redevelopment project and in connivance with Rakesh Kumar Wadhawan and Sarang Wadhawan, managed to divert the proceeds of crime – of over Rs 1,000 crore – by harming the interests of 672 tenants and buyers,” the ED said in a statement. The agency’s case is based on an FIR filed by the Mumbai Police
– Enforcement Directorate
In addition to the Rs 1,034 crore received from various builders, the accused also availed bank loans, the statement added.
ED officials alleged that in 2010, Pravin Raut had received Rs 95 crore in his bank account under the guise of equity sale and land deals even though the company could not complete the project and generated no income.
“Pravin Raut was found involved in the offence of money laundering and to unearth the money trail and the siphoned off funds which ran into over Rs 1,000 crore, he was arrested,” the ED said.
The probe agency has alleged that around Rs 100 crore was transferred from HDIL to Pravin Raut’s account.
Pravin Raut diverted this money into the accounts of his close associates, family members, business entities, and others, the ED said.
In 2010, a part of the proceeds of the crime, amounting to Rs 83 lakh, was received by Varsha Raut from Madhuri Pravin Raut, the wife of Pravin Raut, officials of the Enforcement Directorate claimed. “This amount was utilized by Varsha Raut to buy a flat in Dadar. After the ED investigation began, Rs 55 lakh was transferred by Varsha Raut to Madhuri Raut. There are various other transactions as well,” they added.
The ED has alleged that eight plots of land at Kihim beach were also purchased in the name of Varsha Raut and Swapna Patkar, wife of Sujit Patkar, allegedly another close associate of Sanjay Raut.
– Enforcement Directorate
“In this land deal, apart from the registered value, cash payments were made to sellers. On identification of these assets and other assets of Pravin Raut, a provisional attachment order attaching all these assets of Pravin Raut and his associates was issued,” the agency added.
Pravin Raut was arrested by the ED on February 2, 2022 under the Prevention of Money Laundering Act. He continues to be in jail.
Today’s attachment includes assets worth Rs 9 crore. Plots of land belonging to Pravin Raut in Maharashtra’s Palghar, Saphale and Padga, a flat in Mumbai’s Dadar and plots in Alibaug’s Kihim beach owned by Sanjay Raut’s wife Varsha Raut have been attached. The Kihim beach plots, worth around Rs 2 crore, are the ones that are jointly owned by Swapna Patkar (wife of Sujit Patkar) and Varsha Raut.
Reacting to the attachment, Sanjay Raut tweeted: “Asatyameva Jayate (lies prevail).”
Speaking to India Today TV, a defiant Sanjay Raut said, “I have become more dangerous now. I have spoken with Sharad Pawar and Uddhav Thackeray, and they are all with me.”
“What the ED has attached is my ancestral home, not some property worth crores,” he alleged.
Pravin Raut is also being investigated in the PMC bank loan fraud case. The ED had attached his properties, worth Rs 72.65 crore, in the case.
