Shiv Sena MP Bhavana Gawali's Aide Arrested In Money-Laundering Case

The Enforcement Directorate (ED) arrested Saeed Khan in connection with a money-laundering case. He is a close of aide of Shiv Sena Member of Parliament, Member of Parliament Bhavana Gawali.

The ED has summoned Khan earlier but he failed to appear before the agency. As per reports, he has no been arrest under the provisions of the Prevention of Money Laundering Act (PMLA).

Gawali who is an MP from Yavatmal-Washim, has reportedly been under the ED scanner for alleged misappropriation of funds of about Rs 16 crore and misuse of government grants and funds. The ED is also investigating a trust linked to Gawali in the same case. The ED had earlier searched seven places in Washim which are connected to Gawali and her aide, Saeed Khan. Khan is the director of a company which is owned by Gawali and her mother, as per reports.

The agency said that there alleged irregularities found related to a loan amount of ₹43 crore from the National Cooperative Development Corporation. The money was allegedly not used for the purpose it was provided for. The allegations against Gawali were levelled by Harish Sarda, a former vice-president of Shiv Sena's Washim district unit.

Sarda had filed a petition in Bombay High Court alleging police inaction. In the plea, he accused Gawali of money-laundering, misuse of power in obtaining funds of a factory and embezzlement. In regards with the factory, Sarda alleged that it was first owned by Gawali's father Pudalikrao. The factory was established in 1998 to collect crop residue to make furniture. The goal of the factory was to give employment to farmers but it never got started. The project cost was allegedly at ₹43.85 crore but it was transferred to Gawali-owned Bhavna Agro Products for ₹7.9 crore

Harish Sarda in his petition alleged that Bhavana Gawali's father illegally transferred the land without obtaining permission from concerned authorities. The factory land apparently belonged cooperative society and should not have been transferred to any public trust without government's approval.