ED alleges large-scale financial fraud
Investigators claim crores were routed through multiple bank accounts
A special court in Mumbai has remanded self-styled godman Ashok Kharat to Enforcement Directorate (ED) custody till May 26 in connection with an alleged multi-crore money laundering and extortion case.
The probe agency told the court that Kharat projected himself as a spiritual leader and allegedly collected huge sums of money from followers and associates through intimidation, false promises and fraudulent financial dealings.
ED alleges extortion and money laundering
During the hearing, the ED claimed that Kharat is facing 12 separate cases related to sexual exploitation and financial fraud in Nashik and Ahilyanagar.
Investigators alleged that he extorted at least Rs 5.62 crore from one complainant and routed large amounts of money through multiple bank accounts and fixed deposits.
The agency further claimed that Kharat used the funds for:
- Foreign trips
- Luxury vehicle purchases
- Medical treatment in the United States
According to the ED, Kharat allegedly portrayed himself as an incarnation of Lord Shiva and promised followers solutions to personal and spiritual problems in exchange for money.
Probe agency flags suspicious bank transactions
The ED informed the court that several FIRs against Kharat contain similar allegations of cheating and extortion.
Investigators said transactions involving crores of rupees were routed through accounts linked to him at Bank of Baroda.
Another complainant, identified as Harshad, was allegedly cheated of crores of rupees by the accused.
The agency also alleged that Kharat collected nearly Rs 2.5 crore in the name of real estate investments.
Nearly 60 bank accounts under scanner
According to the ED, Kharat operated nearly 60 bank accounts and maintained 34 fixed deposit accounts.
Many of these accounts were allegedly opened without proper KYC documentation.
The agency claimed that approximately Rs 23.87 crore was withdrawn in cash from the accounts and said investigators need to examine the source and utilisation of the funds.
The ED also informed the court that Rs 24 lakh had been transferred to a person identified as Kalpana Kharat.
Seeking extended custody, the agency argued that several individuals may have helped Kharat operate the accounts and that custodial interrogation was necessary to uncover the wider network.
Defence opposes extended custody
Kharat’s lawyers opposed the ED’s plea, arguing that authorities already possess all relevant financial records and documents.
The defence questioned why no complaints were filed between 2021 and 2023 if the alleged extortion had occurred during that period.
They also argued that the ED was effectively presenting a “virtual chargesheet” during the remand hearing itself.
Kharat responds in court
During the proceedings, the judge questioned Kharat directly regarding the transactions and account operations.
Responding to the court, Kharat said the manager of Jagdamba Patsanstha had advised him to deposit money in banks offering higher interest rates.
“I deposited the money to get favourable interest of 9 per cent,” Kharat told the court.
When asked why several account holders had named him as nominee, Kharat claimed he was unaware of it.
The court later granted ED custody of Kharat till May 26.
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