A special court in Mumbai on Tuesday allowed the Enforcement Directorate (ED) to arrest self-styled godman Ashok Kharat in connection with an alleged Rs 70 crore money laundering case.
Kharat, who is already facing multiple charges of rape and fraud, was produced before the Special PMLA Court on a production warrant from Nashik jail, where he remains in judicial custody.
The ED sought the court’s permission to formally arrest him in the money laundering case, a request that was granted. The agency is expected to complete the required legal formalities before producing Kharat before the court on Wednesday to seek his custodial remand.
The central agency had registered a case against Kharat under the Prevention of Money Laundering Act (PMLA) on April 6, based on an FIR lodged by Nashik Police. The FIR accuses him of extortion, religious manipulation, and drug-facilitated sexual assault involving multiple women.
Kharat is also facing several other FIRs linked to rape and sexual exploitation. He was arrested by Nashik Police on March 18 after a married woman alleged that he had repeatedly raped her over a period of three years.
According to the ED, Kharat allegedly ran a large-scale extortion network and laundered more than Rs 70 crore through a network of benami bank accounts. Such accounts are operated in one person’s name while the funds are controlled or owned by another.
In its plea seeking the production warrant, the ED told the court that Kharat’s custody was necessary to uncover the wider conspiracy, identify the ultimate beneficiaries, and trace the money trail, which investigators suspect may also have international links.
The agency has alleged that Kharat opened nearly 60 bank accounts in a single day at the Samata Nagari Cooperative Credit Society in Ahilyanagar district using documents belonging to victims without their knowledge or consent. Transactions worth over Rs 70 crore were allegedly routed through these accounts.
Investigators further claim that Kharat acquired several movable and immovable assets in his own name and in the names of family members using money generated through extortion. The ED also alleged that he sold ordinary products such as tamarind seeds and honey as “blessed” items to followers.
Meanwhile, a Special Investigation Team (SIT) is probing 12 separate cases of alleged sexual exploitation and financial fraud registered against Kharat in Nashik and Ahilyanagar districts.
(With inputs from PTI)