Mumbai Court Denies Bail Plea for Suraj Chavan in Khichdi Scam

Mumbai:A special court in Mumbai has rejected the bail plea of Suraj Chavan, an aide to Shiv Sena (UBT) leader Aditya Thackeray, in connection with his alleged role in the khichdi scam that surfaced during the Covid-19 pandemic.

Chavan, a core committee member of the Yuva Sena, was arrested by the Enforcement Directorate (ED) on January 17, 2024, on charges of money laundering. The court's decision, delivered by Special Judge AC Daga, came after the prosecution presented evidence implicating Chavan in the generation and layering of criminal proceeds linked to the scam.

Judge Daga noted that a work order was awarded to Force One Multi Services—a company involved in the scam—without proper due diligence by Brihanmumbai Municipal Corporation (BMC) officials, allegedly at Chavan's behest. The court expressed concerns about funds from the khichdi contracts being diverted to Chavan's bank account. “Prima facie, it appears that BMC had been cheated, and, therefore, any amount generated after cheating the civic body is to be counted as proceeds of crime, attracting the Prevention of Money Laundering Act (PMLA),” Judge Daga stated.

The khichdi scam involved contracts awarded by the BMC to distribute khichdi among migrants and the homeless during the lockdown. Investigators claim that Rs 8.64 crore was transferred by the BMC to Force One Multi Services for this purpose. A portion of the funds allegedly found its way into Chavan’s account and was used for asset purchases.

The ED's probe began after the Economic Offences Wing (EOW) of the Mumbai Police registered a case at Agripada police station, which was later classified as a predicate offence under the PMLA.

Chavan’s defense argued that he lacked the influence to sway the contract awards, asserting that the owner of Force One Multi Services held a more significant political position. However, Judge Daga dismissed this argument, stating, “Though such a statement has been made, there is nothing on record to justify it.”

The court’s denial of bail for Chavan underscores the ongoing scrutiny of alleged irregularities in BMC’s contract management during the pandemic. Investigations into the broader implications of the khichdi scam continue.