New Delhi: Shiv Sena MP Sanjay Raut has been to the custody of the Enforcement Directorate (ED) till August 4 in a money laundering case on Monday. Earlier, he was produced by ED before the Prevention of Money Laundering Act (PMLA) court judge MG Deshpande. The law enforcement agency had sought his remand for eight days. The ED, represented by special public prosecutor Hiten Venegaonkar, told the court that Raut and his family were direct beneficiaries of the proceeds of crime.


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Raut and his family received "proceeds of crime" worth over Rs 1 one crore generated out of alleged irregularities in a housing redevelopment project in Mumbai, the ED told the special court. 


Also Read: Sanjay Raut arrested in Patra Chawl scam; will the 672 residents who suffered for years get justice now?


The ED made this claim while seeking Raut's custody in the money laundering case pertaining to irregularities in the redevelopment of Patra 'Chawl' in suburban Goregaon and related financial property transactions involving his wife and alleged associates.


Raut, however, claimed the allegations against him were "vague" and raised out of "political vendetta" as he received full backing from Shiv Sena president Uddhav Thackeray.


What is Patra Chawl scam case? 


Patra Chawl was set to be redeveloped by Maharashtra Housing and Development Authority (MHADA) around 2007-08. The residents were asked to vacate their homes in 2008. The contract to develop flats for 672 tenants of Patra Chawl was given to Guru Ashish Construction Pvt Ltd. However, the company didn't develope even one flat for the residents and sold the FSI or floor space index to nine private developers.


It is alleged that they got Rs 901.79 crore for the same. Sanjay Raut's close aide Pravin Raut was a key part of this scam and allegedly transferred profits to Sanjay Raut and his family.