Shiv Sena (UBT) functionary Suraj Chavan, accused in a money laundering case, allegedly utilized the "proceeds of crime" to acquire properties and invest in a dairy business, as per claims made by the Enforcement Directorate (ED) before a court.

The special Prevention of Money Laundering Act (PMLA) court in Mumbai granted an extension of custody for Shiv Sena (UBT) functionary Suraj Chavan to the Enforcement Directorate (ED) until January 25. This extension pertains to the money laundering case associated with alleged irregularities in the distribution of 'khichdi' to migrants during the COVID-19 period.

Suraj Chavan, a core committee member of the Yuva Sena, the youth wing of Shiv Sena (UBT), led by Uddhav Thackeray, was arrested under the Prevention of Money Laundering Act (PMLA). This action followed his questioning at the agency's office. Chavan, reportedly a close associate of Shiv Sena (UBT) leader Aaditya Thackeray, is currently under investigation.

As Suraj Chavan's initial custody under the ED concluded the probe agency has requested a seven-day extension, asserting that the accused played a "very crucial role" in the offense of money laundering.

The money laundering case originates from an FIR filed by the Mumbai Police's Economic Offences Wing (EOW). The police allege that irregularities occurred in the awarding of contracts by the Brihanmumbai Municipal Corporation (BMC) for the provision of 'khichdi' to migrants during the COVID-19 pandemic.

The probe agency disclosed that the BMC transferred Rs. 8.64 crore for the supply of khichdi packets to the bank account of Force One Multi Services. During the PMLA investigation, it was revealed that Force One Multi Services generated "proceeds of crime" amounting to approximately Rs. 3.64 crore.

The ED claimed that Rs. 1.25 crore was diverted to Suraj Chavan's personal bank account, and Rs. 10 lakh went to the bank account of his partnership firm, Fire Fighters Enterprises. Consequently, the accused, Chavan, is alleged to have wrongfully acquired "proceeds of crime" totaling Rs. 1.35 crore.

While in the custody of the ED, Suraj Chavan allegedly utilized the funds amounting to Rs 1.35 crore received from Force One Multi Services for various purposes. The claimed expenditures include the purchase of an immovable residential flat, investment in agricultural land, participation in a dairy business, settling personal tax liabilities, and covering other personal expenses, as per the agency's assertion. The ED has expressed the necessity for additional documents from police authorities to confront and validate this information in relation to Chavan.

The ED is currently conducting an examination of other key personnel of Force One Multi Services and their associates. The ED stated that the outcome of this examination needs to be confronted with the accused, Suraj Chavan, who is considered one of the key individuals. This confrontation may potentially reveal crucial facts related to the 'Khichdi Scam.'

Image source: Economic Times