The Directorate of Enforcement (ED) has taken action in the Patra Chawl redevelopment case by attaching immovable properties worth Rs 73.62 crore belonging to Pravin Raut, a close associate of Shiv Sena (UBT) leader Sanjay Raut.
This move comes under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
These attached properties include various land parcels owned by Pravin Raut in and around Palghar, Dapoli, Raigad, and Thane areas in Mumbai. The case revolves around irregularities in the redevelopment of the Patra Chawl Project in Mumbai’s Goregaon, carried out by Guru Ashish Construction Pvt Ltd (GACPL).
Initiated based on an FIR by the Economic Offences Wing (EOW), Mumbai, the investigation revealed financial misconduct by GACPL, entrusted with the redevelopment project.
Despite commitments to MHADA, the developer misled and sold the Floor Space Index (FSI) to nine developers, collecting around Rs 901.79 crore without fulfilling obligations to tenants and MHADA.
Pravin Raut, as Director of GACPL, diverted Rs 95 crore to personal accounts and acquired land parcels, some of which were later gifted to family members.
Assets worth Rs 11.15 crore of Pravin Raut and Sanjay Raut and Rs 31.50 crore of Rakesh Kumar Wadhawan and Sarang Wadhawan have been attached previously, totaling Rs. 116.27 crore in attachments.
Pravin Raut and Sanjay Raut were arrested under PMLA in February and August 2022, respectively, and are currently on bail. The ED filed Prosecution Complaints against them and others, with the Special PMLA Court taking cognisance of the charges.
This action underscores the ED's commitment to combating financial malpractices and ensuring accountability in redevelopment projects, signalling a stern stance against money laundering offences.
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