The tainted Adarsh society in south Mumbai is nothing but a money-laundering front to legalise proceeds of crime, alleges a criminal application.
The tainted Adarsh society in south Mumbai is nothing but a money-laundering front to legalise proceeds of crime, alleges a criminal application. It shows how ‘loans’ have been taken and given between the members of society itself.
The application was filed before the Bombay high court on Friday by Pravin Wategaonkar, a Thane resident, who has also filed a public interest litigation seeking that Prevention of Money Laundering Act be invoked in the case.
The application seeks a Central Bureau of Investigation inquiry against former chief ministers of Maharashtra, Vilasrao Deshmukh and Ashok Chavan, for their alleged role in the scam — securing flats for their relatives and for the people recommended by them.
An Adarsh society member, Malav Shah, showed that he bought a flat after borrowing Rs10.95 lakh from his father Jayant. However, it has been found that Malav gave a loan of Rs65.05 lakh to Bhagwati Sharma and Rs70.51 lakh to Madanlal Sharma. Bhagwati Sharma is Chavan’s mother-in-law.
Wategaonkar’s application states that members have tried to show their “proceeds of crime” as white money by claiming it to be a loan received from someone.
On the other hand, the loans have also been kickbacks, passing from one hand to another, for enabling the recommended ones to get flats in the plush society, which otherwise would have been unaffordable for them.
Giving details of more such ‘loans’, the application states that Jayant Shah loaned Rs30 lakh to former MLC and Adarsh promoter Kanhaiyalal Gidwani, and Rs23 lakh to Kailash Gidwani and Rs27 lakh to Amit Gidwani, his relatives. Also, Jairaj Estates, a firm in which Jayant Shah is a partner, has loaned Rs25 lakh to Kanhaiyalal.
Gidwanis, in turn, have loaned Rs104.5 lakh to two other members of Adarsh — Amol Karbhari and Kiran Bhadange.
“Gidwanis were mere conduits; they received Rs105 lakh and, in turn, paid Rs104.5 lakh to finance the purchase of flats of Karbhari and Bhadange,” the application adds.
It claims that Karbhari and Bhadange were recommended by Deshmukh for a flat in Adarsh even though he knew that they were not in any position to pay so much money.
The affidavits filed by these two at the time of application for membership show Bhadange's monthly income as Rs9,500, and Karbhari's as less than Rs12,000.
On Friday, CBI submitted a report containing details of Adarsh members' source of funds -- from where they generated money to purchase flats in the plush society.
A division bench of justices SA Bobade and VK Tahilramani has posted the petitions for hearing on November 23.
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