Adarsh scam: ED probing Ashok Chavan and 13 others for money laundering

MUMBAI: The Enforcement Directorate is investigating whether former chief minister Ashok Chavan and 13 others were involved in money laundering in connection with the Adarsh scam.

ED told the Bombay high court on Monday that it has filed a case information report (equivalent to a first information report) against the 14 on March 5. Senior council RV Desai told the court that an Enforcement Case Information Report (ECIR) has been registered under the Prevention of Money Laundering Act (PMLA) on March 5 against 14 persons. The 14 persons are ones named as accused by CBI in its first information report.

Desai told the court that ED needs to find out if the accused persons had procured flats in the Adarsh society through funds which were proceeds of crime. "We are awaiting CBI to complete its investigation and submit its charge-sheet. ED will then take a decision on registration of FIR and arrest of accused."

A division bench of the Bombay high court, comprising Justices SA Bobade and Mridula Bhatkar, is hearing several petitions filed by social activists Pravin Wategaonkar and Simpreet Singh. The petitions seek ED to register a case under the supervision of the high court.

ED's ECIR says "the accused persons got clearances to construct Adarsh illegally and obtained flats at a very low price compared to market value. The accused projected tainted property as untainted. Prima facie it constitutes offence under Section 3 of PMLA,"

Meanwhile CBI informed the court that it would complete its probe by June 15 and file its charge-sheet thereafter. The court has adjourned the matter till June 18. CBI has already arrested several persons allegedly involved in the scam. Those arrested include society's secretary RC Thakur, retired brigadier MM Wanchoo, former Congress MLC Kanhaiyalal Gidwani and bureaucrats Pradeep Vyas, Ramanand Tiwary and Jairaj Phatak.

The other accused in the FIR are former chief minister Ashok Chavan, former principal secretary to the chief minister Subhash Lala, retired Col TK Sinha, brigadier (retd) PK Rampal and deputy GOC (retd) RC Sharma.