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What Is Patra Chawl Scam And Why Sanjay Raut’s Name Has Surfaced In It

Today we will tell you what is Patra Chawl Project and why Sanjay Raut's name has surfaced in it.

Updated: July 31, 2022 7:52 PM IST

By India.com News Desk | Edited by Tahir Qureshi

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ED raids Sanjay Raut’s residence, questions him on Patra Chawl land scam case

Mumbai: The Enforcement Directorate (ED) has taken Shiv Sena MP Sanjay Raut into custody after 9 hours of questioning in connection with Maharashtra’s Rs 1,039 crore Patra Chawl land scam. Earlier on June 28 also, Raut was questioned by the ED.

Today we will tell you what is Patra Chawl Project and why Sanjay Raut’s name has surfaced in it.

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Question 1: What is Patra Chawl Redevelopment Project?

Answer 1: Siddharth Nagar is located in Goregaon, North Mumbai. It is popularly known as Patra Chawl. There are 672 houses in an area spread across 47 acres. In 2008, the Maharashtra Housing and Area Development Authority (MHADA) started the redevelopment project and awarded the contract to rehabilitate 672 tenants and redevelop the area to Guru Ashish Construction Pvt Ltd (GACPL).

Question 2: What is the ED case against Sanjay Raut?

Answer 2: As per the tripartite agreement, GACPL was to give flats to 672 tenants of Patra Chawl, 3,000 flats for MHADA, and sell the rest to private developers. However, the ED claims that Sanjay Raut’s close aide Praveen Raut and other directors of Guru Ashish Construction misled MHADA and earned Rs 901.79 crore by selling Floor Space Index, i.e., FSI to 9 different private developers. They neither gave flats to 672 tenants nor built any flats for MHADA.

After this GACPL started a project called Meadows and took booking amount of about Rs 138 crore from flat buyers. The ED alleges that Guru Ashish Construction made Rs 1,039.79 crore from these illegal activities.

Question 3: What has the ED found in its investigation and what has it claimed?

Answer 3: The ED has claimed that Praveen Raut received Rs 100 crore from real estate company HDIL. Praveen gave this money to his close associates, family members, and Sanjay Raut’s family.

The ED has alleged that in 2010, Rs 83 lakh was sent to the account of Sanjay Raut’s wife Varsha Raut. He bought a flat in Dadar with this money. The ED has claimed that apart from this, at least 8 plots were bought in the name of Varsha Raut and Swapna Patkar on Kihim Beach in Alibaug, Maharashtra.

Swapna is the wife of Sujit Patkar, a close associate of Sanjay Raut. Cash money was also paid in this land deal. ED said that on the identification of these properties, an order has been issued to attach all these properties of Praveen Raut and his associates.

Question 4: What went wrong with the project?

Answer 4: As per the agreement, the developer was to pay rent every month to all 672 tenants till the completion of the project. However, the rent money was given only till 2014-15. Thereafter the tenants started complaining about non-payment of rent and a delay in the completion of the project.

Meanwhile, it was learned that Praveen Raut and other directors of GACL misled MHADA and sold the flats to 672 displaced tenants or MHADA to FSI for Rs 901.79 crore to 9 private developers without giving them flats. After this GACL started a project called Meadows and took booking amount of about Rs 138 crore from flat buyers.

MHADA issued a termination notice to the developer on 12 January 2018 due to non-payment of rent, delays, and irregularities by the developer. After this notice, 9 developers who bought FSI from GACL reached the High Court. After this, the redevelopment project was put on hold and since then the future of 672 tenants is hanging in the balance.

Question 5: What is the current status of the project?

Answer 5: In 2020, the Maharashtra government formed a one-man committee headed by Johnny Joseph, the retired chief secretary of Maharashtra, to rehabilitate 672 tenants and find a solution for the payment of rent. Following the recommendations of the committee and feedback from MHADA, the state cabinet re-approved the Patra Chawl redevelopment project in June 2021. On 22 February this year, on the orders of CM Uddhav Thackeray, the stalled construction work was resumed.

Now MHADA itself will complete the project as a developer and will give possession of the flat to 672 tenants.

Question 6: What has happened in the ED investigation so far?

Answer 6: Sanjay Raut was questioned for 10 hours on July 1 in this case. During this, Raut’s statement was recorded under the Money Laundering Act (PMLA). In April, the ED had attached assets worth Rs 11.15 crore of Varsha Raut and two of her associates including 8 plots of Alibaug and a flat located in Dadar, Mumbai. In this, Praveen Raut has assets worth Rs 9 crore and Sanjay Raut’s wife Varsha has assets worth Rs 2 crore.

In February this year, the ED arrested Praveen Raut in the Patra Chawl case. He is currently in judicial custody.

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