EXCLUSIVE: ED document reveals political connection in Pravin Raut-Rs 1,000 cr scam

In a massive revelation before a special court in Mumbai, the Enforcement Directorate (ED) has told the court that accused Pravin Raut “is acting as a front or in collision with some influential person.” During investigating the Rs 1,000 crore money laundering scam, ED has come across payments allegedly made by Pravin Raut.

The remand copy, accessed exclusively by Republic TV, reads; “during the course of the investigation, it was revealed that Pravin Raut has made payments to certain political exposed persons.” The remand copy also elaborates on the payments that have come under the scanner which has revealed a massive political link. According to the agency, “Pravin Raut paid Rs 55 lakh from proceeds of crime to the wife of the Politically Exposed Person (PEP) through the accounts of his wife. The money was returned after a gap of 10 years without interest only after ED initiated the investigation.”

After taking Pravin Raut into custody, the agency came across “booking of tickets and hotel accommodation for domestic and international travel of politically exposed person”. The tickets were booked from the “funds of Pravin Raut”. The preliminary investigation reveals that land was purchased in Alibaug and a huge amount was paid in cash for the dealings. The agency has revealed that “these purchases were made in the year 2010-2012” which is after the money he had received from HDIL.

Pravin Raut arrested

Pravin Raut was arrested by the ED on February 2 for his alleged involvement in a money laundering case amounting to more than Rs 1,000 crore. Following a complaint filed by an executive engineer of MHADA, Mumbai Police’s EOW registered an FIR and arrested Pravin Raut. ED in its ECIR (FIR equivalent) named Rakesh Kumar Wadhawan, Sarang Wadhawan. According to ED, Pravin Raut, Rakesh Wadhawan and Sarang Wadhawan conspired together and hatched a conspiracy to fraudulently raise and siphon off monies from this project (Patra Chawl redevelopment) without completing the project and jeopardizing the future of 672 tenants whose dwellings had already been demolished.

The agency believes that Raut did not invest any money in the project for redevelopment. Instead, he received Rs 95 crore from HDIL in lieu of imaginary profit. “The role of Pravin Raut is very crucial in the offense of money laundering and he is the link between Wadhawans on the one side and tenants, MHADA on the other. He has also benefited from this scheme at the cost of tenants and government,” reads the remand copy.

M/s Guru Ashish Constructions Pvt Ltd, in which Pravin Raut is a director, was given the consent to redevelop Patra Chawl spread over 47 acres in Goregaon, Mumbai. The project remains incomplete to date. According to the agency, Pravin Raut exercised great influence from conception to execution. “Before the project could be materialized, he received huge amounts from HDIL on March 30, 2010.”

Future course of action

Sources within the agency have told Republic TV that more people linked to this scam would be summoned in the coming days. Agency sources are not ruling out the possibility of summoning political personalities linked to the case.