Mumbai: Has the Court Issued a Notice to Two Developers in the Patra Chawl Project Case?
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Synopsis
In a significant case surrounding the Patra Chawl Project, a Special PMLA Court in Mumbai has issued a notice to two developers due to their failure to meet housing obligations for displaced tenants. This case, connected to a massive Rs 95 crore money laundering investigation, highlights serious financial discrepancies.
Key Takeaways
- Mumbai's Patra Chawl Project has become central to a major money laundering investigation.
- A Special PMLA Court has issued notices to developers for failing to meet housing commitments.
- Investigation reveals significant financial misconduct involving Rs 95 crore.
- ED's ongoing efforts have led to asset attachments worth over Rs 121.5 crore.
- Accountability in real estate is crucial for protecting vulnerable tenants.
Mumbai, Sep 25 (NationPress) In an ongoing investigation related to a Rs 95 crore money laundering case, a Special PMLA Court in Mumbai has issued a notice to two developers for failing to meet their obligations to the Maharashtra government regarding the construction of housing units for individuals displaced by the Patra Chawl Project, according to an official from the ED on Thursday.
The Special PMLA Court acknowledged the situation and took action in response to the second Supplementary Prosecution Complaint (SPC) submitted by the Directorate of Enforcement (ED), Mumbai Zonal Office, on August 12 against Guruashish Construction Pvt. Ltd. (GACPL) and others.
This acknowledgment by the court occurred on September 20, as indicated by the ED official.
Investigations conducted by the ED have revealed that GACPL, which was tasked with redeveloping the Patra Chawl Project to rehabilitate 672 tenants, has engaged in substantial financial misconduct.
The ED official noted that the Supplementary Complaint has named two new accused entities: Prathmesh Developers LLP, a partnership firm owned by Pravin Raut, and Jitendra Madanlal Mehta, the owner of Mehta Developers, for their involvement in the laundering of Proceeds of Crime.
The agency began its investigation following an FIR filed by the Economic Offences Wing (EOW), Mumbai, under several sections of the IPC, 1860, against GACPL, Rakesh Kumar Wadhwan, Sarang Kumar Wadhwan, and several others, based on a complaint lodged by the Executive Engineer of MHADA, Mumbai, along with a chargesheet dated December 11, 2020.
A tripartite agreement was established between the society, MHADA, and GACPL, where the developer was to provide flats for 672 tenants, develop a proportional area for MHADA, and subsequently sell the remaining land area.
However, the directors of GACPL misled MHADA and fraudulently sold the Floor Space Index (FSI) to developers without constructing the rehabilitation units for the 672 displaced tenants and the MHADA area.
During the investigation, the ED found that a portion of the POC, totaling Rs 95 crore, was redirected by Pravin Raut, a director at GACPL, to his personal bank accounts, which were then used to acquire various land parcels from farmers or land aggregators in his name or through his firm, Prathmesh Developers.
Jitendra Mehta, another accused and owner of Mehta Developer, has been a close associate of Rakesh K. Wadhawan since 2003.
Rakesh Wadhawan utilized funds representing Proceeds of Crime and also managed the bank account of Mehta Developers for GACPL's business operations.
As part of the illegal activities, flats in the Patra Chawl Project were reportedly allocated to Jitendra Mehta without any financial consideration.
Recently, the ED provisionally attached properties worth Rs 5.20 crore belonging to Jitendra Mehta and his family.
This addition follows previously attached assets totaling Rs 73.62 crore linked to Pravin Raut and associates, Rs 11.15 crore belonging to Pravin Raut and Sanjay Raut, and Rs 31.50 crore linked to Rakesh K. Wadhawan and Sarang Wadhawan.
In total, the ED has attached assets worth Rs 121.5 crore in this case to date.
Previously, the ED submitted the main Prosecution Complaint on April 1, 2022, followed by one SPC on September 15, 2022.
Point of View
It is crucial to approach the ongoing case surrounding the Patra Chawl Project with a balanced perspective. The issuance of notices to the developers by the Special PMLA Court underscores the importance of accountability in real estate projects, especially those involving vulnerable populations. The actions of the ED reflect a commitment to upholding justice and transparency in financial dealings.
NationPress
25/09/2025
Frequently Asked Questions
What is the Patra Chawl Project?
The Patra Chawl Project is a redevelopment initiative aimed at rehabilitating tenants displaced from their homes in Mumbai.
What is the significance of the Rs 95 crore case?
The Rs 95 crore case pertains to allegations of money laundering connected to the developers' failure to provide housing units as promised.
Who are the accused in this case?
The accused include Guruashish Construction Pvt. Ltd., Prathmesh Developers LLP, and Mehta Developers among others.
What actions has the ED taken?
The ED has filed multiple complaints and provisionally attached assets worth over Rs 121.5 crore linked to the case.
What are the next steps in the legal process?
The court will review the complaints and evidence presented by the ED, leading to potential further legal actions against the accused.
