Shiv Sena (Uddhav Balasaheb Thackeray) MP Sanjay Raut was granted bail by a Special PMLA court on Wednesday in the Patra Chawl redevelopment money laundering case being investigated by the Enforcement Directorate. Pravin Raut, Raut’s helper, was also granted bail by Special Judge MG Deshpande.

On July 31, 2022, Sanjay Raut was arrested and charged with violating Section 3 read with Section 2(1)(u) of the Prevention of Money Laundering Act 2002. (PMLA). A prosecution complaint had previously been filed against four others.

The ED said that Raut received Rs. 3.27 crore from Guru Ashish Constructions Pvt. Ltd through his “proxy” Pravin (GACPL). This includes funds obtained through banking methods as well as cash from GACPL’s co-accused directors.


However, Raut claimed, through senior counsel Ashok Mundargi and advocate Vikrant Sabne, that there was no evidence to imply that the Rajya Sabha MP was ever involved in offering any favors to the Patra Chawl redevelopment project. ASG Ani Singh opposed his bail application.

“Sanjay Raut’s contribution in giving Patra Chawl Redevelopment Scheme M/s. Guru Ashish Constructions Pvt. Ltd. is critical. He had introduced Pravin Raut as his front in Guru Ashish at a 25% stake in company with no investment. Various statements indicate that Pravin Raut was a front for Sanjay Raut and was acting on his behalf in the project “, according to the chargesheets.

GACPL involvement 

According to the ED, GACPL entered into an arrangement with MHADA for the reconstruction of Patra Chawl in Goregaon. It was meant to build flats for the chawl’s 672 occupants. GACPL had the power to sell flats to third parties and a free sale component (FSI) of MHADA’s land.

GACPL, on the other hand, illegally sold the FSI to various third-party purchasers and collected over 1,034 crores without satisfying its obligations to the tenants and MHADA. This sum was transferred to HDIL and other sibling companies.

The ED chargesheet alleges that GACPL directors conspired with Sanjay Raut to launder money through the Patra Chawl Redevelopment Project. Because of Pravin Raut’s proximity to Sanjay Raut, the FSI was sold to GACPL.

According to ED, Sanjay Raut was involved in the development project from the beginning to the end. He attended discussions for the redevelopment of the Patra Chawl chaired by the Union Agriculture Minister and the Chief Minister, as well as MHADA staff and others.

Sanjay Raut appointed Pravin Raut as GACPL director for a 25% stake without investing, according to the chargesheet. This allowed him to exert control over the project. Pravin Raut was just a frontman for Sanjay Raut, who was running the show behind the scenes.

ED Claims

ED further alleges that Sanjay Raut utilized HDIL’s 112 crores to buy assets and give them to family and friends. He willfully generated and transferred criminal proceeds.

Sanjay Raut amassed many properties, including Alibaug land, while stealing crime gains, the ED said. He also utilized Pravin Raut’s money to buy assets in Kihim for 2.04 crores for a proposed resort project.

The chargesheet stated that witnesses who sold Raut Alibaug land testified that Sanjay Raut coerced them into selling. He also made a monetary payment. The chargesheet alleges that Pravin Raut gave Sanjay Raut substantial amounts of Patra Chawl Project funds.

“Redevelopment of Patra Chawl was to be done by Guru Ashish Construction Private Limited (GACPL) for 672 tenants with Maharashtra Housing and Area Development Authority (MHADA) but even before the construction GACPL sold the FSI to third-party developers for a sum of 1034 crore. This 1,034 crore was an amount from proceeds of crime (POC) by the illegal and unauthorized sale of FSI to developers. Out of POC of 1034 crores, Praveen Raut got 112 crores in his bank account through Housing Development and Infrastructure Ltd (HDIL),” the ED stated.

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