ED: ₹50cr Pravin Raut got was proceeds of crime

The claim of Pravin Raut, arrested in the money laundering case linked to the redevelopment of Goregaon’s Patra chawl, that he had got Rs 50 crore as sweat equity is not true; it’s proceeds of crime, the Enforcement Directorate has said in its charge sheet.

- Vijay V Singh

Mumbai: Raut’s claim that the amount was received from housing firm HDIL as 25% sweat equity in Guru Ashish Construction (subsidiary of HDIL) has been denied outright by Guru Ashish chief financial officer (CFO), added the charge sheet. It is not reflected in the company’s books, too. “Rather this alibi was created by Pravin Raut and Wadhawan (HDIL promoters Rakesh and son Sarang) to create a facade of legitimacy and this amount meant for construction of flats for displaced tenants and home buyers was illegally transferred.”

Apart from the Rs 50 crore, Raut also got Rs 45 crore from aland deal at Palghar. “Pravin Raut received Rs 112 crore between 2008 and 2010 from HDIL in multiple instalments. He failed to give valid reasons,” said the chargesheet.