Mumbai: A Shirdi-based hotelier, questioned in connection with a money laundering probe linked to self-styled godman Ashok Kharat, has allegedly told the Enforcement Directorate (ED) that he received Rs 13.5 crore in cash from Kharat last year for proposed land deal aimed at developing hospitality projects in the pilgrimage town, sources said.
Strategic purchases near fast-developing highway
According to officials familiar with the probe, the hotelier told investigators that the cash was provided for acquisition of land parcels intended for hotel and tourism-related infrastructure in and around pilgrimage town, including strategic purchases along the Samruddhi Mahamarg corridor, where rapid infrastructure expansion has significantly pushed up land valuations.
He stated that he distributed the entire amount to four land dealers and agents to identify and secure suitable properties. However, the proposed transactions could not be finalised, and the funds remain with the intermediaries, who are still awaiting closure of suitable land deals, sources added.
Provided details of four cash recipients
During questioning, the hotelier reportedly told investigators that the entire Rs 13.5 crore was received in cash and that he was unaware of its original source. He also provided details of the four land dealers and agents, whom he transfer the cash amount.
Recently ED conducted searches at multiple premises linked to the hotelier. Officials said the searches were part of an ongoing money laundering probe linked to Kharat, involving suspected financial layering through hospitality and real estate investments.
Understanding if land transactions succeeded
Sources said in his statement before the agency, the hotelier reportedly revealed that while Kharat was not a legal owner in the proposed hospitality venture, there was an understanding that he would receive a partnership stake in the hotel project in return for his multi-crore investment, if the land transactions had gone through.
The ED is now preparing to summon the four land agents concerned to trace the flow and ultimate utilisation of the funds. Investigators believe the Rs 13.5 crore cash transaction is a crucial link in a wider Rs 70 crore banking fraud case involving alleged “ghost accounts” in cooperative credit societies.
Using businessmen and ventures for layering
By mapping these alleged benami arrangements, the agency aims to establish how Kharat allegedly utilized local businessmen and proposed commercial ventures to "layer" illicit wealth into the mainstream economy.
Officials are also examining another key aspect of the alleged arrangement that the Rs 13.5 crore was extended with an understanding that it would be returned with substantial interest if the proposed land transactions did not materialise. However, investigators noted that despite the deal did not materialise, Kharat allegedly neither sought the money back nor charged any interest. Investigators are probing why the Rs 13.5 crore cash investment remained unclaimed despite the failure of the proposed transactions. Sources said this could indicate that the arrangement was not merely a conventional business profit model, but may have involved a mechanism to park and layer unaccounted funds through real estate-linked ventures.
On May 2, the ED moved an application before a special Prevention of Money Laundering Act (PMLA) court seeking a production warrant to bring Ashok Kharat from Nashik Central Jail to Mumbai for custodial interrogation. On Saturday, the Rahata court remanded Kharat to 14 days’ judicial custody following the end of his police custody in connection with an alleged Shirdi land purchase scam and the creation of nearly 100 fraudulent bank accounts in the Samata Credit Society. Investigators suspect these accounts were used to route and siphon funds while exploring entry into the lucrative pilgrimage hospitality sector around Shirdi.
Investigators also said that Kharat had been exploring entry into the lucrative pilgrimage hospitality sector around Shirdi through indirect investments in hotels, resorts and commercial land parcels, where land prices and tourist footfall have increased sharply in recent years.
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