I have answered all the questions. If I don’t know any answer does not mean I am not co-operating. You should read my statement [given to the Enforcement Directorate]. A developer is not a contractor, there is a difference between the two,” said NCP leader Mr Chhagan Bhujbal.
Bhujbal, who stood in the witness box with folded hands and defended himself in the Prevention of Money Laundering Act court on Tuesday, argued that he alone was not responsible for the contracts from which he is alleged to have received kickbacks. “I did not give any contract [to any company], the then-CM Vilasrao Deshmukh held a meeting. There were several ministers involved: the urban development department, law and judiciary, revenue, home, finance and all their no-objection certificates are required. All papers were then given to the secretary, Slum Rehabilitation Authority (SRA),” he said.
He added, “The state government gave its consent for Maharashtra Sadan, RTO office and transit camps and Mr Deshmukh had come for its Bhoomi Pujan. I didn’t give any contract. I have nothing to do with these companies.” Bhujbal denied the statement made by an ex-employee of the Mumbai Education Trust (MET) that “Rs 1 crore in Rs 1,000 notes was carried into the institute in a leather bag”.
“As soon as I came to know Sameer [his nephew] was arrested, I was there. I will be present at the ED office from morning to evening. I can’t give land nor Floor Space Index as it is under the jurisdiction of SRA and not PWD. I have no connection with any company. How are they alleging Rs 800 crore? Why not Rs 8,000 crore or Rs 80,000 crore?” he said during his 15-minute address to the court. He also alleged conspiracy by his CA Sunil Karve and ex-MET employee Amit Balraj.
Money laundering cost state Rs 887 crore, ED tells court
Chhagan Bhujbal was remanded in Enforcement Directorate (ED) custody by a PMLA court for two days when the agency produced him after arresting the NCP leader late on Monday.
In its remand application ED told the court that alleged money laundering by Mr Bhujbal has led to the state exchequer losing Rs 887 crore. “Prima facie there is generation of huge illicit funds and its laundering by the family members and associates of Mr Chhagan Bhujbal,” the application read.
It said the money trail established so far has an intricate web of companies, some on paper and some non-existent, yet Mr Bhujbal maintained deliberate silence instead of cooperating. The remand application also said the building in which Mr Bhujbal is residing with nephew Sameer and son Pankaj is presently controlled by M/s Parvesh Construction Pvt Ltd, whose shares have been sold to Kolkata-based dummy companies at a premium of Rs 9,900. Therefore, the nexus with companies in laundering the proceeds of crime is clearly visible, it said.
The Bhujbals move slush money to Kolkata
In Kolkata, a set of Chartered Accountants and hawala operators use it to ‘buy’ shares at super-high premiums in family-owned firms Parvesh Construction and Armstrong Energy.
Suresh Jajodia, a market operator named by Bhujbal’s CA Sunil Naik, arranges transfer of funds into the bank accounts of Parvesh Construction and Armstrong Energy against cash received from Bhujbal’s MET office at Bandra, uses it to transfer funds to his Kolkata-based contacts via domestic hawala operators.
The Kolkata connection
The Kolkata/Siliguri route is favoured for money laundering and is controlled from the Middle East. Following an Income Tax department investigation in Kolkata, it emerged that money was being laundered via a lottery business in Kolkata and Siliguri. Agents would call up people across the country at random to inform them that they had ‘won’ a lottery, and must deposit a processing fee. The victims deposited token amounts in thousands of bank accounts, activating them. These were later used by hawala operators to move money to Bangladesh, Saudi Arabia and Dubai.
Key statements that nailed Bhujbal
Formed two companies, namely Mangal Sago and Minutex Processors, to arrange payment of Rs 10.2 crore and Rs 15.8 crore in the bank accounts of Parvesh Construction as share purchased at high premium.
— Chandra Sarda, Bhujbal’s CA
Received Rs 8 crore from Sunil Naik to arrange cheque payment in the accounts of Parvesh Construction and Armstrong Energy in the guise of share purchase at high premium.
— Sanjiv Jain, Kolkata-based financial consultant
Accepted cash from Sunil Naik and in turn arranged cheque payment in the bank account of Armstrong Energy of Rs 10.5 crore.
— Praveen Jain, Mumbai resident
Visited MET offices many times to collect cash.
— Prabhakar Sogam, working as an office boy in Praveen Jain’s office.
Shares of Parvesh Construction and Armstrong Energy were sold to dubious entities against cash at a high premium of Rs 9,000 per share against the share value of Rs 100 each.
— Sunil Naik, CA of Bhujbal’s Mumbai Education Trust
Timeline
1973 : Elected as Shiv Sena corporator
1985 : Elected as Sena MLA from Mazgaon
1985-86 : First stint as Mumbai mayor
1990-91 : Second stint as Mumbai mayor
1991 : Leaves Sena to join Congress
1992 : Formed the Mahatma Phule Samata Parishad in Mumbai to project himself as an OBC leader
1995 : Lost Assembly election from Mazgaon to Sena candidate
1996-99 : Stint as leader of opposition in the Legislative council
1999 : Joins mentor Sharad Pawar in the NCP after the Maharashtra Congress splits
1999-2003 : First stint as Deputy CM and Home Minister
2000 : Arrested Shiv Sena chief Bal Thackeray in connection with a 1992-93 riots case
2003-04 : Bhujbal’s name comes up the Telgi stamp duty scam, but he faced no action after CBI inquiry
2004 : Takes charge of the state Public Works Department
2008-10 : Second stint as Deputy CM
2004-14 : Holds PWD portfolio for a decade
2012-15: Faces allegations of floating bogus companies and money laundering. HC sets up Special Task Force to probe allegations
June 2015 : ED files FIR against Bhujbal
Mar 14, 2016 : Arrested by ED in money laundering case
