The Directorate of Law Enforcement (ED) has arrested businessman Pravin Raut under the Prevention of Money Laundering Act (PMLA) in connection with its investigation into the alleged fraudulent sale of the floor space index (FSI) of a plot of land in suburban Mumbai by Guruashish Construction Pvt Ltd, a subsidiary of Housing Development and Infrastructure Ltd (HDIL), officials said on Wednesday.
HDIL has been under the scanner of several investigative agencies in connection with the fraud of Rs 4,300 crore in Punjab and Maharashtra Cooperative (PMC) Bank.
Sources said the ED searched a few premises linked to Pravin Raut on Tuesday and then called him for questioning at his office in South Mumbai. Raut was taken into custody on Wednesday morning after several hours of questioning.
ED discovered that Guruashish Construction had secured a contract from the Maharashtra Housing and Area Development Authority (MHADA) a few years ago to redevelop the Patra Chawl at Goregaon West in the suburbs of Mumbai. According to some sources, Pravin Raut brokered the deal between MHADA and HDIL. The ED alleged that the company had fraudulently sold an FSI worth Rs 1,000 crore without constructing the buildings required for people living in the chawl.
Earlier, the ED tied assets worth Rs 72 crore of Raut under PMLA in the PMC Bank case.