THE ENFORCEMENT Directorate (ED) has summoned Shiv Sena MP and spokesperson Sanjay Raut on Tuesday in connection with a case of alleged money laundering linked to a redevelopment project in Mumbai’s suburbs.
The call comes at a time when Raut is trying to rally the Sena’s MLAs and workers behind Chief Minister Uddhav Thackeray in a bid to overcome an internal revolt led by rebel leader Eknath Shinde who has claimed the support of 39 of the party’s 55 MLAs.
Taking to Twitter and speaking to reporters later, Raut described the ED’s move as a “conspiracy”, said he would not be able to reach its office on Tuesday, and dared the Central agency to arrest him.
The case pertains to alleged irregularities in the redevelopment of Patra Chawl by Guru Ashish Construction Pvt Ltd, a subsidiary of Housing Development and Infrastructure Ltd (HDIL), which has been under the scanner of investigating agencies in connection with the Rs 4,300-crore fraud at PMC Bank.
In February, the ED had arrested businessman Pravin Raut, who is a former director in Guru Ashish Construction and an alleged aide of the Sena leader. In April, the agency attached properties worth Rs 11.15 crore belonging to Sanjay Raut’s wife Varsha Raut, Pravin Raut and Swapna Patkar, wife of the Sena MP’s close associate Sujit Patkar, in the redevelopment project case.
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While top ED officials confirmed that Sanjay Raut has been instructed to appear before them on Tuesday, the MP tweeted: “I just came to know that the ED has summoned me. Good! There are big political developments in Maharashtra. We, Balasaheb’s Shivsainiks, are fighting a big battle. This is a conspiracy to stop me. Even if you behead me, I won’t take the Guwahati route. Arrest me! Jai Hind!”
He was referring to Shinde and the rebel Sena MLAs who are holed up in Guwahati.
Later, Raut said he is not linked to any of the companies on the ED’s scanner. “I will not be able to go to the ED office on Tuesday as there is a rally that was already scheduled in Alibaug and I have to address the people there. It’s a legal battle. Arrest me if you have orders from BJP to arrest me,” he said.
“I will not be scared by such bogus cases. I will prefer to be jailed than go to Guwahati. I am Balasaheb’s Shiv Sainik, I have worked with him for 30 years and I am the editor of ‘Saamana’ (the Sena mouthpiece). I will fight for Shiv Sena from wherever I am,” he said.
Incidentally, while addressing Sena workers in Dahisar on Sunday, Raut had referred to the ED case. “The Shinde camp MLAs are under pressure from the agency and hence they decided to rebel. I am also under the scanner of the ED and my wife’s properties have been attached, but I am still here standing with the Thackerays,” he had said.
Patra Chawl, also known as Siddharth Nagar, is located in the Goregaon area. In 2008, it had a total of 672 houses spread over 47 acres when the Maharashtra Housing and Area Development Authority (MHADA) took up the redevelopment and rehabilitation project, and gave the contract to Guru Ashish Construction.
According to the ED, Guru Ashish Construction signed a tripartite agreement with MHADA to provide flats to 672 tenants, develop flats for the Authority and sell the remaining area to private developers. The tenants’ society was also part of the agreement.
However, the ED claims, Pravin Raut and other directors of Guru Ashish Construction allegedly misled MHADA and sold the floor space index (FSI) to nine private developers, collecting Rs 901.79 crore — without constructing the portions earmarked for the displaced tenants and MHADA.
According to the ED, Guru Ashish Construction also launched a project called Meadows and allegedly took booking amounts totalling around Rs 138 crore from flat buyers. The ED alleged that the proceeds of the crime generated by the firm through these “illegal activities” totalled Rs 1,039.79 crore.
The agency has claimed that Pravin Raut allegedly received Rs 100 crore from HDIL and “diverted” it to various accounts of “close associates, family members, his business entities”, including the family of Sanjay Raut.
The ED has also alleged that in 2010, a part of the proceeds of Rs 83 lakh was transferred to Varsha Raut, who used it to buy a flat in Dadar. Apart from this, at least eight plots of land were allegedly purchased at Kihim beach at Alibaug in Maharashtra in the name of Varsha Raut and Swapna Patkar, according to the ED.
As per the original tripartite agreement, Guru Ashish Construction also had to pay rent to all 672 tenants every month till the completion of the project. However, the rent was paid only till 2014-15, following which the tenants complained against the developer.
On January 12, 2018, MHADA issued a termination notice to Guru Ashish Construction. Against this notice, the nine private developers who had bought the FSI filed a suit in the Bombay High Court, stalling the project.
The ED initiated investigation under provisions of PMLA 2002 against Guru Ashish Construction, HDIL promoters Rakesh Kumar Wadhwan and Sarang Kumar Wadhwan, and others based on a complaint filed by MHADA’s Executive Engineer.
ED summons senior Shiv Sena leader and senior Rajya Sabha MP Sanjay Raut. (File photo) 
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