The Enforcement Directorate (ED) conducted searches at several locations connected to a Mumbai-based businessman and his chartered accountant on Wednesday as part of an ongoing money-laundering investigation linked to a case involving cheating and criminal breach of trust.
The police initiated the case against businessman Mansukh Gala in August 2019, prompting the ED to register a money-laundering case under the Prevention of Money Laundering Act. Gala, who owns a saree showroom in Dadar, had his premises searched during the operation. The original police case was filed based on a complaint from Arvind Shah, a resident of Bhoiwada.
The charges under the Indian Penal Code (IPC) include criminal conspiracy (120B), cheating (420), common intent (34), criminal breach of trust (406), forgery (465), and using forged documents or electronic records (471) against Gala and his chartered accountant.
The complaint alleged that Shah, holding ownership rights through a Power of Attorney from a trust, aimed to develop three buildings in Parel. To facilitate the redevelopment, a firm named ‘SB Developers’ was established. The complainant, needing to cancel the lease of a defunct civic Tamil language school on the third floor of one of the buildings, was reportedly required to pay Rs 67 lakh to the BMC.
To navigate this process, Shah sought assistance from the accused, who agreed to help under specific terms and conditions. One condition stipulated that the accused would become a 50% partner in the firm.
The police case alleges that the accused gained control of assets valued at Rs 5 crore, irregularly acquiring them based on the then-market value.