Strong evidence against Bhujbal family in New Maharashtra Sadan scam, says Enforcement Directorate, Chhagan Bhujbal denies allegations

Enforcement Directorate officials say they have found "some strong evidences" against former Maharashtra PWD minister Chhagan Bhujbal and his family in a scam linked to the construction of New Maharashtra Sadan in New Delhi.

The ED is a member of the Special Investigation Team (SIT) set up to probe allegations of money laundering against the senior NCP leader.

The SIT comprises of Anti-Corruption Bureau director general and ED director. It has a deadline till February 28, 2015, to submit its report.

The team was formed on the orders of a Bombay High Court division Bench comprising of Chief Justice Mohit Shah and Justice BP Colabawalla.

The court order came after Maharashtra Chief Minister Devendra Fadanvis gave a nod to the Anti-Corruption Bureau to probe the allegations against Bhujbal on irregularities in the construction of the building in New Delhi.

It is alleged that Bhujbal, the PWD minister during the previous Congress-NCP government, awarded contracts to certain private firms and kickbacks were paid to his institute, Mumbai Education Trust.

This is what an ED source, who did not want to be identified, has told IndiaToday.in: "We have come across around 100 bank accounts of the Bhujbal family. We have got the details of all the financial transactions done by the family via multiple layers of companies. At least 15 entities directly controlled by the Bhujbals are involved in this case. We're scrutinising them very closely."

The entities under the scanner include Origin Infrastructure, Armstrong Energy, Armstrong Infra, Armstrong Utility, Armstrong Power, Niche Infra, Blue Circle, Bavesh Developer, Bhujbal Wines, Bhujbal Charitable Trust, Parvesh Construction and Ideen Furniture.

"Till now, our investigation shows that money in crores of rupees has come into Parvesh Construction with the help of these entities. In fact, in Parvesh Construction, Pankaj Bhujbal and Sameer Bhujbal, the son and nephew of Chhagan Bhujbal, were directors. But strategically, both resigned at the right time to evade suspicion," the source said.

According to ED, Chhagan Bhujbal is technically "not the director of any of these companies. Therefore, the entire case and investigation is moving around Pankaj and Sameer as of now. But yes, one small transaction in a few lakh rupees was made to Chhagan Bhujbal. Why? We are looking into it."

The ED officials say they have also found that Vishaka Bhujbal and Shefali Bhujbal, wives of Pankaj Bhujbal and Sameer Bhujbal, and directors of Ideen Furniture, are also under investigation.

"Allegation of gratification of more than Rs 200 crore through interconnected web of companies is being investigated by ACB and ED. So far, we've found linkages, or, could be said, evidences of Rs 100 crore in all these bank accounts - which has been done via banking transactions (unaccountable money). But while questioning some contractors, we got to know that most of the payments were done in cash (in large numbers) - which is unaccountable money. We are trying
to get hold these evidences," the source said.

ED officials have found that the Bhujbal family members also bought and sold shares of a few companies at high prices.

Meanwhile, the ED has shot off a letter to the Reserve Bank of India seeking details of foreign transactions made by the Bhujbal family - directly or indirectly.

"We are also looking into an allegation of the purchase of two coal mines in Singapore and Indonesia for Bhujbal's power plant in Nashik. We suspect a transaction of almost Rs 100 crore could have been made outside the country. Details have been sought from the RBI," the source said.

Since the last two years, the BJP has been alleging that Chhagan Bhujbal allotted construction work of the New Maharashtra Sadan to Avinash Chamankar for Rs 52 crore on build-operate-transfer (BOT) basis and offered him development rights of a slum plot in Andheri.

Later, the cost of Sadan was not only rose to Rs 152 crore but front companies allegedly run by Bhujbal family members were also appointed as sub-contractors.

A PIL filed in the Bombay High Court alleged that Origin Infrastructure, a company floated by two employees of MET and
controlled by Bhujbal, was appointed as sub-contractor.

The furniture for the building was supplied by Ideen Furniture, a company owned by daughters-in-law of Bhujbal. And Parvesh Construction Private Limited, a company floated by Bhujbal family, allegedly usurped Rs 100 crore by misappropriation of shares.

The ED team has also held a meeting with senior ACB officials to discuss the case.

The ED wants to complete its "open inquiry" against the Bhujbal family and related entities by the end of this month.

All allegations false: Chhagan Bhujbal

However, when contacted, Chhagan Bhujbal told IndiaToday.in that "all the allegations were false".

"All these allegations are made by the petitioner earlier in Bombay High Court too. The ED might not have begun its investigation properly; they might not have complete details about the case. However, till now, we have not received any communication from any agencies on this case," Bhujbal told IndioaToday.in on phone.

"Once it comes to us, we would reply it back, peacefully, and clarify our position. I am sure, we would come out clean from these allegations," he said.