ED arrests Ashok Kharat in Rs 70 crore money laundering case

Mumbai: The Enforcement Directorate (ED) on Tuesday arrested Ashok Kharat, a Nashik-based astrologer accused of running a money-laundering operation by exploiting spiritual faith.Last week, observing that there may be strong likelihood that the proceeds of crime have cross-border implications leading to their utilisation outside India too, the special PMLA court issued a production warrant for Kharat. This order came after the ED moved a plea submitting it uncovered banking transactions exceeding Rs 70 crore.Kharat, who was in custody in other criminal cases in Nashik, was brought to Mumbai on Tuesday morning and produced before the special PMLA court. Through special public prosecutor Arvind Aghav, the ED sought permission to arrest him, which was granted. The judge noted that the prosecution’s submissions detail a financial scheme involving the collection of large sums of money from multiple sources, routed through intermediary accounts to final beneficiaries. Specifically, it was alleged that Kharat holds multiple bank accounts and he opened proxy accounts under other people’s names to siphon off significant amounts of money. “The investigating agency wants to trace the source of unaccounted cash allegedly collected by… Kharat and its ultimate beneficiaries. Role of… Kharat in commission of the money laundering offences is also described in details….,” the judge said, while noting that his arrest was necessary.Kharat will be produced for his remand hearing on Wednesday.Last week, while granting the plea for his physical production, the judge had noted that it was necessary to identify the ultimate beneficiaries who have acquired, possessed, and utilised the proceeds of crime. “The accused is the main person who extorted money from the victims spanning across Maharashtra thorough religious manipulation and by instilling fear of God, diving wrath, misfortune in the mind and the same has been converted into accounted money by the help of the persons known to him and also invested in the Real Estate either in his name or in the name of his family member,” the special judge noted.Granting the plea, the court further iterated the need to confront the accused with the recovered records and statements to unearth the larger conspiracy and the potential cross-border implications of the funds. The court accepted the prosecution’s submissions that the accused was central to the process of projecting “proceeds of crime as untainted property”.The court directed the authorities at Nashik Road Central Jail to produce Kharat on May 19 with adequate police protection and security.The ED alleged Kharat opened 60 bank accounts using devotees’ documents without consent, with 43 opened in a single day. All accounts were linked to his mobile number, giving him control over the funds. The ED said cash deposits of over Rs 9 crore were routed through these accounts and described them as proceeds of crime from organised extortion and religious manipulation.According to the ED’s plea, the allegations across the FIRs indicate a pattern of “grave and organized criminal activities” involving extortion through religious manipulation, inducement and drug-facilitated acts, targeting multiple victims across Maharashtra. The ED said Kharat allegedly gained victims’ trust by offering religious guidance and business support, involving them in rituals and meetings, and then induced them to spend money at his instance on foreign travel, a luxury vehicle (a Mercedes), medical treatment, construction and other purposes. When a complainant demanded return of money after realising he had been misled, Kharat allegedly threatened him. The ED said the extortion from one complainant is alleged to be approximately Rs 4–5 crore.The agency further alleged Kharat adopted a “captain” persona to project authority and trust, using claims of supernatural powers and fear of death, black magic and divine wrath to secure compliance. The application alleges he administered ‘prasad' or drinks laced with sedatives to women, sexually assaulted them while unconscious or semi-conscious, recorded the acts and used the recordings to blackmail them and extort money by threatening to release the footage.It also alleged an extortion racket operated with associates to extract crores under the guise of “settling” cases, and deceptive demonstrations including staged rituals and props such as remote-controlled fake snakes and tiger skins. The ED said Kharat allegedly sold common items such as wild tamarind seeds as “blessed” items for Rs 10,000 to Rs 1 lakh by claiming divine healing powers, and used threats to coerce landowners into selling valuable land at undervalued prices.In its PMLA probe, the ED said it noticed Kharat acquired movable and immovable properties, including land and other assets, in his name and in the names of family members and associates, allegedly from funds accumulated through extortion and by selling items such as tamarind seeds and honey as “blessed” products.