ED arrests Mirchi aide in laundering case

MUMBAI:THE Enforcement Directorate (ED), investigating the property dealings of late gangster Iqbal Mirchi — a close aide of fugitive gangster Dawood Ibrahim — in a money-laundering case arrested on Tuesday businessman Humayun Merchant, 70. The ED termed him a “frontman”, who was given power of attorney (POA) by Mirchi after the latter had fled the country. Later in the day, the agency arrested one Rinku Despande, for allegedly forging documents.

The ED alleged that Merchant “planted” tenants to purportedly usurp three immovable properties — Sea View, Marium Lodge and Rabia Mansion in Worli — belonging to the Sir Mohammad Yusuf Trust.

Merchant refuted the allegations in a special Prevention of Money Laundering Act (PMLA) court, saying his arrest was unsolicited.

According to the agency, in 1986, Mirchi purchased the three properties belonging to the trust, of which British national Haroun Yusuf was chairman, for ₹6.5 lakh.

At the time of sale, various tenants were occupying the buildings. However, Mirchi later fled the country. “From the list of tenants from 1981 to 2010 and from various statements recorded under PMLA, it is found that the initial tenants were replaced by Mirchi’s relatives/close associates and by 2005, almost all tenants were Mirchi’s nominees and were planted by Merchant in connivance with Yusuf,” the ED told the court in its remand report.

The ED also alleged that Merchant then facilitated the deal to develop these buildings located at a prime location in Worli.

Later in 2010, M/s Sunblink Real Estate Pvt Ltd entered into the project and a deal was struck for the surrender of tenancy rights in favour of Sunblink for ₹225 crore, of which Merchant allegedly pocketed ₹170.75 crore. Merchant was remanded in Enforcement Directorate custody till October 24.