After Patra Chawl case Sanjay Raut under ED lens in PACL money laundering case- Details inside

Shiv Sena MP Sanjay Raut, who is currently under the custody of the Enforcement Directorate (ED) in the Patra Chawl money laundering case, could face scrutiny in another case where the ED has requested the custody of his close aide Pravin Raut.

In July, the ED applied to a special PMLA (Prevention of Money Laundering Act, 2002) court in Mumbai for custody of Pravin Raut in the PACL scam case, with the intention of transporting him to Delhi for investigation. Raut was unable to be brought to Delhi due to personnel concerns, but legal proceedings are still ongoing.

What is PACL chit fund scam?

PACL, also known as Pearl Group, had raised money from the public in the name of agriculture and real estate businesses. It was found by Sebi to have collected more than Rs 60,000 crore through illegal collective investment schemes (CIS) over a period of 18 years.

During the investigation, it was discovered that PACL directors siphoned off funds received from investors and used them for personal advantage by investing in numerous organisations.

Role of Sanjay Raut’s close aide Pravin Raut in the case

According to an ED investigation, PACL transferred Rs 2285.79 crores to one Prateek Kumar, who invested Rs.94.61 crores in DDPL and Unicorn. PACL also contributed Rs. 110.95 crores in Systematix Venture Capital Trust through its 25 front businesses in the form of OFCD and ownership in DDPL and Unicorn.

Pravin Raut was hired by DDPL and Unicorn for the sale of FSI and the construction of residential and commercial projects. Following the completion of the project, DDPL and Unicorn were to transfer 10 lakh square feet of FSI land purchased by Raut.

This was done to settle conflicts between original landowners and those in possession of the land to assist with land acquisition, building material procurement, and obtaining different approvals.

ED authorities noted in their remand report while requesting custody of Sanjay Raut that Pravin Raut was a close aide of Sanjay Raut and not only diverted profits of crime from the Patra chawl case, but there were some other transactions under scrutiny.

READ| Sanjay Raut detained by ED after raids and questioning in Patra Chawl land scam case

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