ED Attaches M/s Guru Ashish Construction Pvt Ltd’s Immovable Properties Worth (Approx) Rs. 11.16 Crore

In a case involving irregularities in the redevelopment of the Patrachawal Project in Goregaon, Mumbai by M/s Guru Ashish Construction Pvt Ltd, the Directorate of Enforcement has provisionally attached immovable properties totaling Rs 11,15,56,573/- under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). The attached assets include lands at Palghar, Saphale, and padga owned by Pravin M Raut, former director of Guru Ashish Construction Pvt Ltd, Mumbai, a flat in Dadar owned by Smt Varsha Raut, and plots at Kihim beach in Alibaug jointly owned by Smt Varsha Raut, wife of Sanjay Raut, and Swapna Patkar, wife of Sujit Patkar.

On the basis of a complaint filed by Executive Engineer, MHADA, Mumbai, invoking sections 409, 420, and 120-B of the IPC, the ED has launched an investigation under the provisions of the PMLA, 2002 against M/s Guru Ashish Construction Pvt Ltd, Rakesh Kumar Wadhwan, Sarang Kumar Wadhwan, and others.

M/s Guru Ashish Construction Pvt. Ltd was entrusted with the creation of the Patra Chawal Project for the rehabilitation of 672 tenants, according to an investigation conducted under the PMLA. M/s Guru Ashish Construction Pvt Ltd’s directors at the time were Rakesh Kumar Wadhawan, Sarang Wadhwan, and Pravin Raut. M/s Guru Ashish Construction Pvt Ltd, society MHADA, and M/s Guru Ashish Construction Pvt Ltd inked a tripartite agreement. According to the deal, the developer will supply flats to 672 renters, create units for MHADA, and then sell the rest of the land. The directors of M/s Guru Ashish Constructions deceived MHADA and sold the FSI to nine developers for Rs 901.79 crore without completing the rehab component for 672 displaced occupants or the MHADA portion. M/s Guru Ashish Construction Pvt. Ltd has also announced a project called Meadows, which has received bookings worth Rs 138 crore from flat purchasers. The overall proceeds of crime earned by the directors of M/s Guru Ashish Constructions Pvt. Ltd through illicit operations was estimated to be around Rs 1039.79 crore. A portion of the proceeds of crime was also given to close acquaintances.

So far, money trail investigations have indicated that roughly Rs 100 crore was transferred from HDIL to Pravin Raut’s account. Pravin Raut then moved the funds to other accounts belonging to his close colleagues, family members, and business enterprises. It was also found that in 2010, Smt Varsha Raut, Sanjay Raut’s wife, received Rs 83 lakhs in proceeds of crime from Madhuri Pravin Raut, Pravin Raut’s wife, directly or indirectly. This money was used by Smt Varsha Raut to acquire a flat in Dadar. It was also found that Smt Varsha Raut transferred Rs 55 lakhs to Mrs. Madhuri Raut after the ED inquiry was launched. There are also a number of other transactions to consider. Moreover, during the aforementioned time frame.

Smt Varsha Raut and Swapna Patkar, wife of Sujit Patkar, a close acquaintance of Sanjay Raut, also purchased 8 plots of land at Kihim beach in Alibaug. Cash payments were provided to the sellers in this land purchase, in addition to the registered value. Following the discovery of these and other properties belonging to Pravin Raut, a temporary attachment order was obtained, attaching all of Pravin Raut’s and his associates’ assets.

Pravin Raut was arrested on February 2, 2022, for his role in money laundering and is currently in judicial custody. The ED has already attached Pravin Raut’s immovable assets worth Rs 72.65 crore in another PMC bank fraud case on December 31, 2020.

Further investigation is in progress.