On July 31, Shiv Sena leader Sanjay Raut was arrested by Enforcement Directorate (ED) in connection to Patra Chawl Land Scam Case. ED initially detained Raut following the raid on his residence in Mumbai. Notably, two summons were issued against Raut.
The central investigation agency has summoned him multiple times in relation to the case. On July 1, Raut appeared before the agency to record his statement. Later, Raut skipped the summons twice, stating he was busy with his duties as a member of the Parliament and could join the investigation only after August 1. The most recent summon issued on July 27. On July 28, ED questioned him for the second time. On July 31, they conducted a raid at his house and eventually arrested the Shiv Sena leader.
To understand why he was arrested, it is essential to learn about the Patra Chawl Land Scam. The alleged scam finds its roots dating back to 2007. Patra Chawl, also known as Siddharth Nagar, is a locality in North Mumbai’s suburb Goregaon, spread over 47 acres. In 2007, Maharashtra Housing and Area Development Authority (MHADA) and Guru Ashish Construction Pvt Ltd (GACPL) signed an agreement to provide new houses to the 672 tenants of the chawl. Furthermore, GACPL was in agreement to develop 3,000 flats for MHADA. The remaining area of the chawl was marked to be sold to private developers.
Contrary to what was signed in the agreement between the tenants’ society, GACPL and MHADA in 2007, nothing was built for the residents of the chawl on ground. All the development mentioned in the agreement allegedly remained limited to the papers, and for the past 14 years, the residents have been seeking possession of the promised houses.
Sanjay Raut’s close aide’s owned GACPL and sold land marked for houses.
As per the agreement, the construction company GACPL was supposed to provide 672 houses to the tenants of the chawl. There was a provision for flats for MHADA as well. Only the remaining part was supposed to go to the private developers. However, the investigation agency ED alleged that Pravin Raut, a close aide of Sanjay Raut, and other directors of GACPL did not fulfil the agreed terms.
GACPL did not build even a single house for the displaced tenants of the chawl. Furthermore, the land (Floor Space Index or FSI) marked for their houses was sold to nine private developers for the price of Rs 901.79 crores. GACPL also launched its own project named The Meadows, for which the company took bookings from flat buyers that clocked close to Rs 138 crores.
There was a clause in the agreement under which GACPL was supposed to pay the rent to the tenants till they gave possession of the houses. For seven years, they paid the rent, but in 2014-15, the rent payments stopped. As the project was still pending and tenants were not getting the promised rent payments from the company, they started complaining. During that period, they came to know that GACPL had already sold the marked land to nine private developers without building a single house for them.
Following the update in the matter, MHADA decided to terminate the agreement with GACPL in January 2018, citing non-payment of rent and several other irregularities. The project again faced another obstacle as the nine buyers who bought the land from GACPL challenged the notice in the Bombay High Court.
In 2020, a single-member committee led by retired chief secretary Johnny Joseph was formed by the then-Maharashtra government. The aim was to study and recommend possible solutions for the rental payment and rehabilitation of the 672 tenants who were moved out of the chawl with a promise of new houses.
In June 2021, the project was reapproved by the then-Maharashtra government. In February 2022, the construction of the project restarted following the orders signed by then-chief Minister Uddhav Thackeray. As per the orders, MHADA itself is working on the entire project as a developer, including the houses for the 672 tenants. It will hand over 306 flats to those who won them in the lottery in the building once they are completed.
Indian Express had quoted an MHADA official saying, “MHADA itself will now be working on the entire project as a developer and will be providing 650 square feet carpet area flats to the 672 tenants through the redevelopment project.”
The details of ED’s case
Enforcement Directorate has filed a case against GACPL, stating the illegal activities of the company allegedly amount to Rs 1,039.79 crores. During the investigation, the agency found that Pravin Raut had received Rs 100 crores from HDIL. ED further added that the money was diverted to different accounts owned by his family members, business entities and close associated. Some of the money was transferred to the accounts allegedly linked to Shiv Sena leader Sanjay Raut as well.
Furthermore, the agency said that Varsha Raut, wife of Sanjay Raut, received an amount of Rs 83 lakhs directly or indirectly from Madhuri Raut, wife of Pravin Raut, which translates to criminal proceeds. The money was allegedly used by Varsha Raut to buy an apartment in Dadar.
Following the investigation initiated by the ED, Rs 55 lakhs were transferred from Varsha to Madhur. ED said in its report, “During the said period, eight plots of land at Kihim beach in Alibaug were also purchased in the names of Varsha Raut and Swapna Patkar, wife of Sujit Patkar, a close associate of Sanjay Raut. In this land deal, apart from the registered value, cash payments were made to the sellers. On identification of these assets and other assets of Pravin Raut, a provisional attachment order attaching all these assets of Pravin Raut and his associates has been issued.”
It is noteworthy that recently audio has gone viral on social media platforms in which Sanjay Raut was allegedly hurling abuses at Sujit Patkar’s wife, Swapna Patkar.
During the investigation, ED attached properties linked to Raut in Alibaug and Dadar. The agency wanted to question Raut about the connection with Pravin Raut. Another part of the questions included details about the dealings his wife was involved in. According to the sources, Raut did not cooperate in the investigation during the raid on his house.
Pravin Raut, one of the accused in the case, was arrested in February 2022 by the ED. He is currently in judicial custody.
