The Maharashtra CID Monday arrested builder Vyomesh Shah, the owner of real estate firm Hubtown (previously known as Ackruti City Ltd), and three others, after it found out that Shah had created a subsidiary company that received money routed through three cooperatives set up by MLA Ramesh Kadam.
Last year, Kadam was arrested for misappropriating funds from a government corporation set up to assist the Matang community. The four were produced before a court that remanded them in police custody till February 12.
According to the CID, the money that Shah received for his subsidiary company was part of the at least Rs 250 crore Kadam siphoned off. Shah used that money to purchase land in Peddar Road in south Mumbai.
On August 16, last year, the CID had arrested Kadam, an NCP MLA from Mohol in Solapur, for misappropriating funds from Lokshahir Annabhau Sathe Development Corporation (LASDC), of which he was the chairman.Besides Kadam, his cousins Nakusa Kadam and Laxmi Lokhande, and other accomplices Vijay Kasbe, Harshada Bendre and Amardeep Singh Sethi had been arrested by the CID.
CID Superintendent of Police Poornima Gaikwad said that probe found the money siphoned off by Kadam was passed on to a company owned by Shah through a series of cooperatives. “There were three cooperatives set up at the behest of Kadam. Part of the money misappropriated from LASDC was parked in these cooperatives. This money was then given to Comran Realty, a sister concern owned by Shah,” Gaikwad said.