According to news outlet ANI, Shiv Sena politician Sanjay Raut has been granted bail in a money laundering case involving the Patra Chawl land scandal by a Mumbai PMLA court.
After hearing arguments from both parties last week, Special Judge M G Deshpande, who is assigned to handle matters involving the Prevention of Money Laundering Act (PMLA), reserved the order.
The Rajya Sabha member was detained in July of this year by the Enforcement Directorate (ED) for his suspected involvement in financial irregularities related to the redeveopment of Patra Chawl in Mumbai’s suburb Goregaon. The ED had contested Raut’s plea, claiming that he had been heavily involved in the Patra Chawl redevelopment money laundering case and had worked “behind the scenes” to evade the money trail.
— ANI (@ANI) November 9, 2022
The investigation being conducted by the enforcement agency focuses on alleged financial irregularities in the redevelopment of Patra Chawl and related financial transactions involving his wife and associates.
On 47 acres in Goregaon, Siddharth Nagar, also referred as as the Patra Chawl, is home to 672 tenant families.
A reconstruction contract for the Chawl was given to Guru Ashish Construction Private Limited (GACPL), a subsidiary of Housing Development and Infrastructure Ltd. (HDIL), in 2008 by the government agency Maharashtra Housing and Area Development Authority (MHADA).
In addition to providing certain flats to MHADA, the GACPL was mandated to construct 672 apartments for the residents. The remaining acreage could be offered for sale to private developers.
However, the company did not renovate the Patra Chawl and instead sold land pieces and Floor Space Index (FSI) to other builders for Rs. 1,034 crore, according to the ED. As a result, the tenants have not received even a single apartment in the past 14 years.