The ED has gone to a special court dealing with cases under the Prevention of Money Laundering Act (PMLA) in Mumbai, asking for this “production warrant” to arrest Kharat as part of the money laundering investigation. They say they must have Kharat in court to make the arrest and that it’s urgent they trace the 70 crore rupees and find out who the money ultimately went to.
ED seeks production to arrest Kharat in PMLA probe
The ED told the court they need Kharat brought before them to arrest him under the Prevention of Money Laundering Act. Kharat has been held by the police at different stations since his arrest in March for other crimes.
The ED’s request to the court says that they absolutely need to question Kharat while he’s in their custody to find out who ultimately received the money from the alleged crimes. The agency specifically said Kharat needs to be brought to them to identify those final beneficiaries.
Allegations detail a web of bank accounts and real estate
The ED claims Kharat created a system of accounts to move money that was obtained illegally. Investigators say he opened around 60 bank accounts, all using one phone number linked to him, and he was often the only person listed as being able to get the money from the accounts, and in some cases opened the accounts without permission from the people whose names were on them.
In 2021, the ED says 43 accounts were opened in just one day at a cooperative credit society using the ID documents of Kharat’s followers and other people. More than 70 crore rupees moved through those accounts, according to the request to the court.
The agency also believes that money taken from people who were victimized was put into property owned by Kharat or his family. When they searched Kharat’s home and office in April, they found paperwork about properties and property businesses, and they are now looking at these documents to follow the money.
The ED summarised its core claims as follows:
– Multiple accounts opened using devotees’ documents
– Transactions above Rs 70 crore across linked accounts
– Funds allegedly parked in real estate assets
– Kharat named as nominee or controller of accounts
Religious manipulation and alleged exploitation
The ED’s case is based on a police report filed in Nashik which accuses Kharat of extortion, manipulating people through religion, and using drugs to attack several women. Other police reports accuse Kharat of cheating followers by tricking them, including selling them wild tamarind seeds and claiming they had magical powers to heal.
In their request to the court, the ED described Kharat as the key person who took money from victims all over Maharashtra by manipulating their religious beliefs. They said they need to have him in custody to investigate his helpers and find out what the suspicious illegal money was finally used for.
Parallel criminal cases and police custody
Kharat is facing many police reports related to rape, sexually abusing women, and fraud. Nashik police arrested him on March 18th after a married woman said he repeatedly raped her for three years, according to the police files the ED included in their request.
On Friday, a court in Nashik said Kharat should remain in police custody until May 4th in a fraud case involving over 5 crore rupees (50 million rupees) that he allegedly took from a businessman in Pune. A Special Investigation Team is also looking into several cases against him in Nashik and Ahilyanagar districts.
ED’s PMLA case and investigation timeline
The ED started their criminal case under PMLA on April 6th, after reviewing the Nashik police report. They also searched Kharat’s properties in April and took documents that they say are essential for following the path of the money from the alleged crimes.
What the court will examine next
The PMLA court is planning to discuss the ED’s request for a production warrant and custody of Kharat on Saturday, May 2nd. The ED says they need custody to look at the documents, show Kharat his financial records, and find the final beneficiaries of the suspected money laundering.
If they get the warrant, the ED wants to ask Kharat about opening dozens of accounts on the same day, how the cooperative credit societies were used, and how the money went into real estate. What the court decides will determine what happens next in the money laundering investigation.
