Khichdi scam case: The Enforcement Directorate (ED) has summoned Sandeep Raut, the younger brother of Shiv Sena (UBT) MP Sanjay Raut for questioning in a money laundering case linked to the alleged 'khichdi' scam during the peak of the COVID-19 pandemic.
Sandeep Raut has been asked to before the central agency at its office in Mumbai next week. According to officials, his statement will be recorded under the Prevention of Money Laundering Act (PMLA).
It is alleged that Sandeep Raut was a "beneficiary" of some suspicious funds generated in this case.
ED arrested Suraj Chavan
Last week, the central agency arrested Suraj Chavan, another Shiv Sena (UBT) leader in this case.
Chavan, a core committee member of the Yuva Sena, the youth wing of the Uddhav Thackeray-led Shiv Sena faction, is in ED custody till Thursday and is expected to be produced before a court.
The money laundering case stems from an FIR of the Mumbai Police's Economic Offences Wing (EOW).
What is the case?
According to police, alleged irregularities took place while giving contracts by the Brihanmumbai Municipal Corporation (BMC) for providing 'khichdi' to migrant labourers during the COVID-19 pandemic.
The work order was given by the BMC to Sahyadri Refreshments, which sub-contracted it to Force One Multi Services for preparation, packaging and distribution of 'khichdi' to the respective sites.
The ED claimed that it was revealed that the BMC authorities awarded the khichdi work order to Force One Multi Services because of Suraj Chavan's connection with "senior political leader/influential persons." The central agency informed the court that there were no guidelines or criteria followed in the process of awarding the work order, as it sought Chavan's remand.
It claimed that the BMC transferred an amount of Rs 8.64 crore into the bank account of Force One Multi Services for the supply of khichdi packets.
It was claimed that Force One Multi Services generated proceeds of crime amounting to approximately Rs 3.64 crore. Among these funds, Rs 1.25 crore was allegedly diverted into the personal bank account of Chavan, and Rs 10 lakh into the bank account of his partnership firm, Fire Fighters Enterprises. Consequently, Chavan was accused of wrongfully acquiring proceeds of crime totaling Rs 1.35 crore.
What did ED's investigation reveal?
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 Chavan as an employee of the firm, two forged and backdated appointment letters were issued in his name.
When questioned about his involvement in influencing and contacting any BMC officer regarding the allocation of work orders for khichdi supply to Force One Multi Services, Chavan reportedly denied any such role and provided evasive responses, according to the probe agency.
The ED had asserted that the illegal funds acquired by Chavan were utilized for acquiring immovable residential and agricultural properties in his personal name, which requires further examination under the Prevention of Money Laundering Act (PMLA).
(With PTI inputs)
