Patra Chawl redevelopment scam: ED attaches properties worth Rs 73.62 crore of Sanjay Raut’s close aide, others

According to the ED, Pravin Raut was the frontman of Sanjay Raut in the Patra Chawl scam. Pravin and Sanjay were both arrested by the ED in the case in 2022. The two later got bail in November 2022.

Pravin Raut diverted funds

The ED investigation has revealed that a part of the proceeds of the crime (PoC), amounting to Rs 95 crore, was diverted by Pravin Raut, director of the Guru Ashish Construction Pvt Ltd (GACPL), to his personal bank accounts.

Part of the proceeds were utilised for acquisition of various land parcels directly from farmers or land aggregators in his own name or in the name of his firm Prathmesh Developers. Also, a part of the PoC was parked by him with people associated with him.

“Further, some properties acquired by Pravin Raut out of the PoC, were later gifted by him to his family members. Such identified proceeds of crime in the form of land parcels acquired from farmers, gifted properties to family members and equivalent properties of siphoned off PoC to Pravin Raut and associates, have been attached amounting to Rs 73.62 crore,” the ED stated in a statement on Wednesday.

The ED’s money laundering probe in the case is based on Mumbai police EOW’s FIR pertaining to alleged irregularities in the redevelopment of the Patra Chawl Project in Mumbai’s Goregaon. The Redevelopment was carried out by the GACPL and Pravin Raut was the director of the said firm.

The EOW had registered a fraud case against the GACPL, Rakesh Kumar Wadhwan, Sarang Kumar Wadhwan and others on a complaint by Maharashtra Housing and Area Development Authority (MHADA). The EOW also filed a chargesheet in the matter in December 2020.

The Patra Chawl scam

During the money laundering investigation, the ED found that the GACPL, which was entrusted with the redevelopment of the Patra Chawl Project for the rehabilitation of 672 tenants, has been involved in significant financial misconduct.

A tripartite agreement was signed between the society, MHADA and GACPL wherein the developer (GACPL) was supposed to provide flats to 672 tenants, develop flats for the MHADA and thereafter sell the remaining land.

However, the directors of the GACPL misled MHADA and managed to sell the Floor Space Index (FSI) fraudulently to nine developers, collecting an amount of Rs 901.79 crore (approximately) without constructing the rehabilitation portion for the 672 displaced tenants and flats for the MHADA.

Earlier in this case, assets worth Rs 11.15 crore belonging to Pravin Raut and Sanjay Raut were attached by the ED. Also, assets amounting to Rs 31.50 crore of Rakesh Kumar Wadhawan and Sarang Wadhawan, in the form of properties situated at Goa were also attached by the agency.