Money laundering case: Decision on Sanjay Raut's bail plea on November 9

He had last month sought bail in the case, which the ED opposed.

Urvi MahajaniUpdated: Wednesday, November 02, 2022, 08:45 PM IST
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Money laundering case: Decision on Sanjay Raut's bail plea on November 9 | Kunal Patil

Mumbai: A special court is likely to pass an order on November 9 in the bail plea of Shiv Sena MP Sanjay Raut who is arrested by the Enforcement Directorate (ED) in an alleged money laundering case related to the redevelopment of Patra Chawl in suburban Goregaon.

While reserving the order on Wednesday, special judge MG Deshpande said he will first pass an order in the bail plea of Pravin Raut, co-accused in the case.

On a query by ED counsel Ashish Chavan, judge Deshnapde said, “It is your case that the percolation of the money is from there. So, unless Pravin's case is decided, I cannot decide Sanjay Raut's bail.”

The court designated to hear cases under the Prevention of Money Laundering Act (PMLA) also extended Raut’s judicial custody till November 9.

Raut was arrested in PMLA Case

The ED had arrested Raut on August 1 this year in a money laundering case connected to Goregaon’s Patra Chawl redevelopment project. He is presently in judicial custody in Arthur Road prison.

ED alleged that he had received Rs1.06 crore from his co-accused Pravin Raut. The amount it alleges is a part of the ‘proceeds of crime’ (POC) of Rs112 crore that Pravin Raut received from the illegal sale of Floor Space Index (FSI) in the project. Pravin Raut was one of the directors of the firm that had taken up the project that never saw the light of day.

Raut said he is the “victim of political change of power”

Raut said he is only the “victim of political change of power” and thereby “abuse of criminal machinery” at the hands of the ruling party.

The investigating agency had opposed the bail plea contending that the case was not registered “out of malice or vendetta” and that he is fully involved in the offence of money laundering.

The scam pertains to alleged financial irregularities in the redevelopment of the Patra Chawl and related financial transactions involving Raut, his wife and associates. Patra Chawl is spread over 47 acres and houses 672 tenant families.

Out of 672 flats, tenants yet to get a single flat in last 14 years

In 2008, the Maharashtra Housing and Area Development Authority (MHADA), a government agency, assigned a redevelopment contract for the Chawl to Guru Ashish Construction Private Limited (GACPL), a sister company of the Housing Development and Infrastructure Ltd (HDIL). The GACPL was supposed to build 672 flats for the tenants and also give some flats to MHADA. It was free to sell the remaining land to private developers.

But the tenants did not get a single flat in the last 14 years as the company did not redevelop the Patra Chawl and sold land parcels and FSI to other builders for Rs1,034 crore, as per the ED.

ED’s allegations against Pravin Raut are of laundering Rs 112 crore, while Sanjay Raut had allegedly received over Rs 3 crore.

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