The Special Court, PMLA at Mumbai has taken cognizance of and issued process on the Enforcement Directorate (ED)’s second supplementary prosecution complaint in the ongoing Patra Chawl redevelopment fraud case. The court’s order was passed on September 20, 2025, based on the complaint filed by the ED’s Mumbai Zonal Office on August 12, 2025.
The new Supplementary Prosecution Complaint (SPC) names two additional accused: M/s Prathmesh Developers LLP and Jitendra Madanlal Mehta, proprietor of M/s Mehta Developers. Both are accused of playing a role in the laundering of Proceeds of Crime (POC) related to the Rs. 1,039.79 Crore scam.
The case originated from an FIR filed by the Economic Offences Wing (EOW), Mumbai, against M/s Guruashish Construction Pvt. Ltd. (GACPL) and its directors, including Rakesh Kumar Wadhwan and Sarang Kumar Wadhwan. GACPL was entrusted with the redevelopment of the Patra Chawl Project in Goregaon, a project intended to rehabilitate 672 tenants.
The ED’s investigation alleges that GACPL’s directors misled the Maharashtra Housing and Area Development Authority (MHADA). Instead of completing the rehabilitation component, they allegedly sold Floor Space Index (FSI) to nine other developers. This fraudulent action generated a total Proceeds of Crime of approximately Rs. 1,039.79 Crore.
The new complaint details the specific roles of the recently summoned accused. Pravin Raut, partner in M/s Prathmesh Developers LLP, allegedly used diverted POC funds for acquiring various land parcels. Jitendra Mehta, a close associate of Rakesh Kuldipsingh Wadhawan, allowed GACPL to operate the bank account of his firm, M/s Mehta Developers, for business activities. Mr. Mehta allegedly received flats in the Patra Chawl project without any consideration for his assistance in these illegal activities.
In a related action, the ED recently provisionally attached properties worth Rs. 5.20 Crore belonging to Jitendra Mehta and his family. This brings the total provisionally attached assets in the case to Rs. 121.5 Crore. The attached assets include properties belonging to Pravin Raut, Sanjay Raut, Rakesh Kumar Wadhawan, and Sarang Wadhawan.
The ED stated that the present supplementary complaint further strengthens the case by establishing the money trail and the specific method of laundering the proceeds of crime.
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