Mumbai

A special court under the Prevention of Money Laundering Act on Tuesday sent self-styled godman Ashok Kharat to 14-day judicial custody in a money laundering case being investigated by the Enforcement Directorate.

Kharat, who is also facing allegations of rape and fraud, was arrested by the ED last week under provisions of the PMLA.

He was produced before the special court in Mumbai on Tuesday after completion of his earlier custodial remand.

During the hearing, the ED informed the court that Kharat’s further custodial interrogation was not required at present, though it reserved the right to seek his custody again if necessary during the course of the investigation.

The court subsequently remanded him to judicial custody.

According to the ED, Kharat was the key conspirator and principal beneficiary in the laundering of more than Rs 47 crore allegedly generated through criminal activities.

The agency initiated the money laundering probe on April 6 after taking cognisance of an FIR registered by the Nashik Police accusing him of extortion, religious manipulation and drug-facilitated assault on several women.

The ED has alleged that Kharat operated an extensive extortion network and laundered money through multiple benami bank accounts.

Investigators claimed that he secretly opened 60 bank accounts at the Samata Nagari Cooperative Credit Society using documents of his followers without their knowledge or consent.

The agency said 43 of these accounts were allegedly opened on a single day in May 2021. Between 2021 and 2026, over Rs 47.74 crore in cash transactions was allegedly circulated through these accounts.

The ED further alleged that proceeds generated through extortion and religious exploitation were layered through a network of cooperative societies, benami accounts and accounts linked to family members to disguise the origin of the funds.

According to the probe agency, the money was later used to acquire immovable properties in the names of Kharat and his relatives, including purchases allegedly made through cash payments to legitimise the funds.

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Meanwhile, a Special Investigation Team is separately probing 12 criminal cases related to alleged sexual exploitation and financial fraud against Kharat in Nashik and Ahilyanagar districts.