Mumbai, Jan 18 (PTI) A court here on Thursday remanded Suraj Chavan, a Shiv Sena (UBT) functionary, to the Enforcement Directorate (ED) custody till January 22 in a money laundering case linked to the alleged irregularities in the distribution of ‘khichdi’ to migrants during the COVID-19 period.
The probe agency told the court that the accused managed to secure a work order for a firm for the supply of khichdi due to his “proximity with a senior political leader”.
Chavan, who is a core committee member of the Yuva Sena, Uddhav Thackeray-led Shiv Sena (UBT)’s youth wing, was arrested on Wednesday evening under the Prevention of Money Laundering Act (PMLA) after he was questioned at the agency’s office here.
The money laundering case stems from the first information report (FIR) of the Mumbai police’s Economic Offences Wing (EOW). According to police, the alleged irregularities took place while the contracts for providing khichdi to migrants during the COVID-19 was awarded by the Brihanmumbai Municipal Corporation (BMC).
The ED, represented by special public prosecutor Sunil Gonsalves, told the court that when the BMC decided to distribute khichdi to the needy people during COVID-19, work order was given to Sahyadri Refreshments, which sub-contracted it to Force One Multi Services for preparation, packaging and distribution of khichdi to the respective sites.
During the course of investigation, it came to light that due to proximity of Suraj Chavan with “senior political leader/influential persons” the work order for khichdi was awarded to Force One Multi Services by the BMC Authorities, the agency said.
No guidelines or criteria were followed while awarding the work order, it said.
The probe agency claimed that for the supply of khichdi packets, an amount of Rs 8.64 crore was transferred by the BMC into the bank account of Force One Multi Services.
Investigation conducted under the PMLA revealed that Force One Multi Services generated proceeds of crime of around Rs 3.64 crore, of which Rs 1.25 crore were diverted into the personal bank account of Chavan and proceeds of Rs 10 lakh into the bank account of his partnership firm, Fire Fighters Enterprises.
In this manner, Chavan has wrongfully acquired the proceeds of crime to the tune of Rs 1.35 crore, it said.
The ED’s investigation has revealed that “there was no role played” by Chavan in supplying khichdi.
The illegal profit generated by Force One Multi Services was distributed to the accused by showing him as an employee of the firm from financial year 2019-20 and funds were transferred to him as salary and some in the form of personal loans.
The ED claimed that to project him as an employee of the firm, two forged and backdated appointment letters were issued in the name of Chavan.
On being asked about his role in influencing and contacting any BMC officer regarding allotment of work-orders of khichdi supply to Force One Multi Services, he was in denial and made evasive responses, the probe agency said.
The illegal funds acquired by the accused were used for the purchase of immovable residential and agricultural properties in his personal name, which needs further examination under the PMLA, the ED said.
The federal probe agency said the accused has played a very crucial role in the offence of money laundering.
It sought his custody for eight days, saying sustained interrogation during the custody is required to unearth the trail of funds, for corroboration and confrontation with other persons involved in the case.
Opposing the remand plea, Chavan’s lawyer Harshad Bhadbhade submitted that it is not an offence to know a “politically influential person”. “Is his proximity with a politician a crime?” he asked.
The ground of arrest is not justified, it is abuse of the process of law, he said, adding the accused was not concerned with Sahyadri Refreshments or Force One Multi Services.
However, the court after hearing both the sides, remanded the accused to the ED custody till January 22. PTI AVI NP
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