Money laundering case: ED summons Raut's brother in 'khichdi scam' case

The Enforcement Directorate has summoned Sandeep Raut, the younger brother of Shiv Sena (UBT) MP Sanjay Raut, for questioning in a money laundering case linked to the alleged 'khichdi scam' during the peak of the COVID-19 pandemic, official sources said Wednesday.

Sandeep Raut has been asked to depose before the central agency at its office in Mumbai next week, they said, adding his statement will be recorded under the Prevention of Money Laundering Act (PMLA).

Suraj Chavan, a functionary of the Shiv Sena (Uddhav Balasaheb Thackeray) faction, was arrested in this case by the ED last week.

Chavan, a core committee member of the Yuva Sena, the youth wing of the Uddhav Thackeray-led Shiv Sena (UBT), is in ED custody till Thursday and is expected to be produced before a court here.

The money laundering case stems from an FIR of the Mumbai Police's Economic Offences Wing (EOW).

According to police, alleged irregularities took place while giving contracts by the Brihanmumbai Municipal Corporation (BMC) for providing 'khichdi' to migrants during the COVID-19.

The probe agency has said that for the supply of khichdi packets, an amount of Rs 8.64 crore was transferred by the BMC in the bank account of Force One Multi Services (which was given the work order for 'khichdi').

Force One Multi Services has generated the "proceeds of crime" of around Rs 3.64 crore, of which Rs 1.25 crore were diverted to the personal bank account of Chavan and Rs 10 lakh to the bank account of his partnership firm Fire Fighters Enterprises, the ED had informed the court while seeking Chavan's remand.

Chavan, in this manner, wrongfully acquired the "proceeds of crime" to the tune of Rs 1.35 crore, it alleged.