Sanjay Raut’s judicial custody extended till October 3 in money laundering case
The Enforcement Directorate is investigating the Shiv Sena MP’s involvement in an alleged fraud in the redevelopment of a tenement building in Mumbai.
A Mumbai court on Monday extended the judicial custody of Shiv Sena MP Sanjay Raut by 14 days in a money laundering case related to the redevelopment of a tenement building, reported Bar and Bench.
The Rajya Sabha MP was arrested on July 31 after the Enforcement Directorate searched his house in Mumbai. Since his arrest the court has extended Raut’s judicial custody on three occasions.
The Enforcement Directorate is investigating Raut’s involvement in the Patra Chawl scam, which involves an alleged fraud of Rs 1,034 crore. The central agency has alleged that Raut and his aides made fraudulent financial transactions related to the redevelopment of a chawl – a building consisting of several tenements – in Mumbai.
On September 15, the Enforcement Directorate had filed a supplementary prosecution complaint, which is the central agency’s equivalent for a supplementary chargesheet. The agency had filed the first chargesheet against Raut on April 1.
While opposing Raut’s bail application on September 16, the Enforcement Directorate had said that he is an influential and powerful person. “If released on bail, he may influence and tamper [with] evidence,” it said. “There are instances of him threatening witnesses.”
The supplementary prosecution complaint alleged that in order to avoid trial, Sanjay Raut worked “behind the curtains” while his confidant Praveen Raut was the frontman. The Enforcement Directorate had attached properties worth Rs 9 crore belonging to Praveen Raut in June.
The redevelopment project for 672 tenants was taken up by a firm called Guru Ashish Constructions Pvt. Ltd, where Pravin Raut was one of the directors, reported Outlook. The central agency alleged that Pravin Raut acquired Rs 112 crore from the project out of which he had diverted some amount to Sanjay Raut and his wife, reported The Times of India.
The central agency has also accused Raut’s wife and construction company HDIL’s promoter Rakesh Wadhwan of fraudulently raising money for the project to siphon off the amount with no intention of completing the project. The money was used by Raut to purchase properties in the Dadar area in Mumbai and Kihim in Alibaug, alleges Enforcement Directorate.