Mumbai: The Enforcement Directorate on Wednesday conducted searches at the premises of Congress leader Baba Siddique and few others in the Maharashtra capital over the Slum Rehabilitation scam.
News agency PTI has quoted officials as saying that raids are being carried out in at least six locations in Mumbai, including that of builder Rafique Maqbul Qureshi. Maqbul is believed to be a close associate of Siddiqui.
They added that the ED has registered a criminal case against Siddique and others under the Prevention of Money Laundering Act (PMLA) on the basis of a local police FIR in connection with alleged financial irregularities in the redevelopment of a slum area in suburban Bandra.
The agency also suspects usage of shell companies in committing the alleged irregularities and hence the raids are being conducted to gather more evidence, they said.
The scam amounts to approximately Rs 100 crore.
As per rules, whenever a plot is developed in the slum area, a portion of it is devoted to the slum-dwellers. However, it has been alleged that the fraud was done with the help of false documents.
During the raids, documents showing money being sent to Siddiqui's company have been found from Qureshi's place.
Siddique has been a Congress MLA in the Maharashtra Assembly and also served as a Municipal Corporator.
(With Agency inputs)