The Enforcement Directorate (ED) has provisionally attached two land parcles in connection with irregularities in redevelopment of the Patra Chawl project at Goregaon in Mumbai by Guru Ashish Construction.
Located in north Goa, the land parcels belong to Guru Ashish Construction’s Rakesh Kumar Wadhawan and Sarang Kumar Wadhawan. The twin land parcels, worth Rs 31.50 crore, have been attached under the provisions of the Prevention of Money Laundering Act, 2002, (PMLA)
The ED has initiated a probe under the provisions of the PMLA, 2002, on the basis of an FIR registered by the Economic Offenses Wing (EOW), Mumbai against the company, its directors and others on basis of complaint filed by executive engineer, the MHADA (Maharashtra Housing and Area Development Authority), under various sections of IPC.
A probe under the PMLA revealed a tripartite agreement was signed among the society, the MHADA and the company for the redevelopment of the Patra Chawl project for rehabilitation of 672 tenants.
According to the agreement, the developer was to provide flats to 672 tenants and develop flats for the MHADA. The remaining area was to be sold by the developer as per the agreement.
“The directors of Guru Ashish Constructions misled the MHADA and sold the FSI (floor space index) to 9 developers and collected net amount of approximately Rs 901.79 crore without constructing the rehab portion for 672 displaced tenants and the MHADA portion,” the ED said in a statement issued on April 3, 2023.
“Guru Ashish Construction also launched one project namely ‘Meadows’ and collected the booking of around Rs 138 crore from flat buyers. Total proceeds of the crime generated by directors of the company through the illegal activities was approximately Rs 1039.79 crore,” it added.
“The investigation also revealed that Rakesh and Sarang Wadhawan further diverted the above-mentioned illegal funds through bank accounts of HDIL and/or its group companies viz GACPL, Sapphire Land Development, Satyam Realtors, etc., which finally reached in the personal bank accounts of Rakesh Kumar Wadhawan and Sarang Wadhwan after multiple layering,” it added further.
Between 2011 and 2016, PoC of Rs 38.5 crore from the account of Rakesh Wadhawan was utilised for pre-payments of the instalments against availed loan of Rs 28.5 crore from India Bulls Housing Finance Ltd for acquiring 2 plots of area of 1,250 square meter and 15,300 square meter in North Goa worth Rs 31.50 crore during 2011. A payment of Rs 2 crore were also made to the seller of the plots from the personal account of Sarang Wadhawan.
