The Enforcement Directorate (ED) has filed a Prosecution Complaint (chargesheet) before a Special Court against self-styled godman Ashok Kharat, his wife Kalpana Kharat, and four others in connection with an alleged money laundering case linked to a suspected ₹70 crore fraud.
According to the ED, Kharat, who allegedly operated under the names "Captain" and "Bondhu Baba," was arrested on May 19 under Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA) and is presently in judicial custody.
The agency stated that assets worth approximately ₹36.90 crore have so far been attached, seized or frozen. These include immovable properties valued at around ₹19 crore and movable assets worth nearly ₹18 crore, including bank lockers, vehicles and other valuables recovered during searches conducted in April and May.
Investigation Based on Multiple FIRs
The ED initiated its money laundering investigation on the basis of multiple FIRs registered at Sarkar Wada, Shirdi, Sinnar and Rahata Police Stations in Maharashtra.
According to the agency, Ashok Kharat allegedly exploited the religious faith of devotees by persuading them to hand over money, jewellery and property in the name of:
- Special religious rituals
- Healing serious illnesses
- Removing misfortune
- Improving business prospects
- Providing divine blessings
The ED alleges that these activities constitute scheduled offences such as cheating, extortion and criminal intimidation, which form the basis for initiating proceedings under the PMLA.
Alleged Laundering of Proceeds of Crime
Investigators further allege that the money generated through the alleged fraudulent activities was subsequently layered through various financial channels to conceal its origin.
According to the ED, the suspected proceeds of crime were routed through two cooperative credit societies, allegedly with the assistance of an employee who helped operate multiple bank accounts.
The agency also suspects that substantial cash deposits, withdrawals and investment maturity proceeds were used through alleged benami accounts to disguise the source and movement of funds.
Properties Across Maharashtra Under Scanner
The ED has alleged that the suspected funds were utilised to acquire properties in the names of family members and close associates.
Properties under investigation are reportedly located in:
- Nashik
- Ahmednagar
- Solapur
- Pune
- Mumbai
Investigators are examining ownership records, financial transactions and documentary evidence to determine whether these assets were acquired using alleged proceeds of crime.
Assets Worth ₹36.90 Crore Identified
According to the agency, action has been taken against assets valued at approximately ₹36.90 crore.
The assets include:
- Immovable properties worth around ₹19 crore
- Bank lockers
- Vehicles
- Cash and valuables recovered during searches
- Other movable assets
The attachment or seizure of assets under the PMLA is intended to prevent the alleged proceeds of crime from being transferred, sold or otherwise dissipated during the investigation.
Separate Criminal Case Under Investigation
Before the ED's arrest, Nashik Police arrested Ashok Kharat on March 18 following a complaint filed by a married woman alleging repeated sexual assault over a period of three years.
That criminal case is being investigated independently by the Maharashtra Police and is separate from the money laundering proceedings initiated by the Enforcement Directorate.
The allegations in both matters remain under investigation and have not been finally adjudicated by a court.
ED Investigation Continues
The Enforcement Directorate stated that the investigation is continuing to:
- Trace the complete proceeds of crime
- Identify the financial network
- Verify ownership of attached assets
- Examine bank transactions and investment records
- Determine the role of other individuals allegedly connected with the case
The agency added that further legal action may be initiated if additional financial or documentary evidence is discovered during the course of the investigation.
Shunyatax Global Insight
The Ashok Kharat case demonstrates how PMLA investigations extend far beyond the original criminal allegations. Once a scheduled offence is registered, enforcement agencies focus on tracing the complete financial trail, identifying beneficial ownership of assets and examining whether money has been layered through bank accounts, cooperative societies or benami arrangements. Individuals and institutions handling high-value cash transactions should maintain robust KYC, transaction monitoring and documentation, as financial records often become the most critical evidence in money laundering investigations.