According to police, the scam emerged after alleged irregularities occurred when contracts for the supply of khichdi (steamed rice and pulses) to Covid-era migrants were awarded through the Brihanmumbai Municipal Corporation (BMC).
The Enforcement Directorate informed the court that the defendant had managed to discharge a painting order for a Khishdi company due to his “closeness to a senior political leader. “
The money laundering case stems from the first Information Report (FIR) of the Economic Crimes Wing (EOW) of the Mumbai Police.
The ED, represented through Special Prosecutor Sunil Gonsalves, told the court that when the BMC made the decision to distribute khichdi to other people in need of COVID-19, the paint order was handed over to Sahyadri Refreshments, which subcontracted it to Force One Multi Services for the preparation, packaging and distribution of khichdi at the respective sites.
During the investigation, it emerged that due to Suraj Chavan’s proximity to “senior political leaders/influential persons,” the order for paint for the khishdi had been awarded to Force One Multi Services through BMC authorities, the firm said.
No criteria were followed to award the painting order, he stated.
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.
The PMLA investigation revealed that Force One Multi Services generated proceeds of crime of around Rs 3. 64 crore, of which Rs 1. 25 crore was diverted to Chavan’s private bank account and proceeds of Rs 10 lakh from rupees to the bank account of its associate company, Fire Companies.
In this way, Chavan wrongfully acquired proceeds of crime worth Rs 1. 35 crore, he said.
The illegal profit generated through Force One Multi Services distributed to the defendant by presenting him as an employee of the company as of the 2019-20 financial year and budget was transferred to him in the form of salary and component in the form of private loans. .
The ED claimed that in order to present him as an employee of the company, two falsified and backdated letters of appointment had been issued in Chavan’s name.
When asked about his role in influencing and contacting a BMC official regarding the awarding of orders for paints with khichdi sources to Force One Multi Services, he denied it and gave evasive answers, the investigative firm said.
The illegal budget acquired through the defendant was used to purchase residential and agricultural housing real estate in his non-public name, which demands additional scrutiny by the PMLA, the ED said.
The Federal Investigation Agency said the defendant played a major role in the money laundering crime.
He asked that he be held in police custody for eight days, arguing that interrogation while in police custody was mandatory to uncover evidence of funds, corroborate it and confront it with others involved in the case.
Against the request for pre-trial detention, Chavan’s lawyer, Harshad Bhadbhade, argued that meeting a “politically influential person” is not a crime. “Is it a crime to be close to a politician?” 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.
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