ED gets 'godman' Kharat's custody, says he resorted to systematic extortion

Self-styled godman Ashok Kharat resorted to systematic extortion by claiming to possess divine powers, and rotated more than Rs 47 crore of ill-gotten money through 60 bank accounts, the Enforcement Directorate told a court here on Wednesday while seeking his custody.

The special court for Prevention of Money Laundering Act (PMLA) cases granted the central agency his custody till May 26.

Kharat, facing multiple cases of rape, sexual exploitation and cheating, was produced before the court after the ED arrested him on Tuesday. The agency sought his custody for ten days to trace the utilization of laundered funds.

The ED registered a case against Kharat under the PMLA on April 6, taking cognisance of a First Information Report registered by Nashik Police for alleged extortion, religious manipulation and drug-facilitated assault on multiple women victims.

Kharat orchestrated a massive extortion racket and money laundering through a web of 'benami' or proxy bank accounts, the ED claimed.

He clandestinely opened 60 separate bank accounts at the Samata Nagari Cooperative Credit Society at Rahata using the documents of his devotees without their consent, and 43 of these accounts were opened on a single day in May 2021, the agency said.

He systematically rotated more than Rs 47.74 crore across these bank accounts between 2021 and 2026, it said.

Notably, while seeking a production warrant for him earlier, the agency had estimated the amount at Rs 70 crore.

Public prosecutor Arvind Aghav, representing the ED, submitted that Kharat falsely projected himself as an incarnation of Lord Shiva, called himself ''Captain'', and claimed to have supernatural powers and special religious knowledge.

He created an atmosphere of fear through staged rituals and props such as remote-controlled fake snakes and tiger skins, and threats of divine wrath, black magic, and death, the prosecutor said.

He would target victims by ''exploiting their religious vulnerabilities'' by inducing them to make substantial payments for performing so-called ''avatar Poojas'' and other fabricated religious ceremonies, the ED said.

As per the probe agency he generated proceeds of crime through systematic extortion and religious manipulation, and layered the money through a sophisticated network of benami bank accounts, cooperative credit societies and family members' accounts.

Kharat utilised the proceeds of crime to acquire immovable properties in his and his family member's name, thus converting laundered funds into legitimate-appearing assets, claimed the ED.

When the judge asked about the bank accounts, Kharat told the court that he was convinced by the bank's chairman to keep the amount with their bank as they offered an interest rate of nine percent, better than a ''sarkari'' bank.

His lawyer Niranjan Mundargi contended that most of the transactions in question had taken place before the registration of the FIR which became the basis of the ED's case.

The court, after hearing both sides, held that custodial interrogation of the accused was ''absolutely necessary'' and sent him in ED custody till May 26.

Kharat was first arrested by the Nashik Police in north Maharashtra on March 18 after a married woman accused him of repeatedly raping her over three years.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)