EOW Conducts Search Operation At IPS Officer’s Colaba Residence

Mumbai: The Economic Offences Wing (EOW) of the Mumbai Police conducted a search operation on Friday morning at the official government residence of Rashmi Karandikar IPS officer in Colaba, who is currently posted in the civil defence department. The operation was part of an ongoing investigation into an alleged large-scale property fraud involving her husband, Purshottam Chavan, who is currently in judicial custody in connection with a Rs 263 crore alleged TDS fraud case being probed by the Enforcement Directorate (ED).

According to officials, Chavan is accused of orchestrating a significant property scam, allegedly duping multiple victims by falsely claiming that he could secure high-value flats under the urban development department’s government quota by securing flats worth crores of rupees at a fraction of their market value. Chavan and other accused have been charged with sections 420 (cheating), 419 (cheating by impersonation), 465 (forgery), 467 (forgery of valuable security), 468 (forgery for the purpose of cheating), 471 (using a forged document as genuine), and 120B (criminal conspiracy) of the Indian Penal Code. Sections of the now defunct IPC are being applied since the case pertains to a period before the new criminal laws were introduced.

Ms Karandikar had headed the Mumbai cyber police wing in 2021 when the then former chief minister Devendra Fadnavis and then DG (CRPF) Rashmi Shukla (now DGP Maharashtra) were summoned in connection with a case filed under the Officials Secrets Act against unidentified persons for allegedly tapping phones and leaking confidential documents following a complaint by the State Intelligence Department (SID). The Maha Vikas Aghadi led by Udhhav Thackerey was in office at the relevant time. Ms Karandikar was also instrumental in arresting the accused in the ‘Bulli Bai’ app or Clubhouse cases in 2022 where images of Muslim women were posted in an attempt to “auction” them and objectionable content was shared in the chatrooms.

The EOW probe into the property fraud followed the ED’s recent action against Chavan, who was arrested in the TDS fraud case.

In a significant development, the ED had recently sent an official letter to the EOW, sharing critical evidence of counterfeit government documents that were recovered during the ED’s search operation on May 19, 2024, at Ms Karandikar’s official residence in Colaba. This search took place shortly before Chavan’s arrest in the ongoing Rs 263 crore Income Tax TDS refund fraud case. It is reliably learnt that Ms Karandikar has filed for divorce.

EOW sources said after conducting a due preliminary inquiry for weeks, the EOW officials got an FIR filed at the Colaba police station and took over the investigation. Besides Chavan, other accused named in the FIR includes Prasad Desai, Sanjay Patil, Ganesh Patil, Deepak More, N D Nirmale, Govind Sawant, Shashank Limaye, Yashwant Pawar, assistant sub-registrar and officials from Parel-Sewri stamp registration office and others who directly and indirectly helped main culprit prepare duplicate documents.

According to the investigation, it is alleged that Chavan was involved in counterfeiting government quota property documents, defrauding victims of over Rs 100 crore. He allegedly created forged documents for 19 properties in Mumbai and Transferable Development Rights (TDR) for land parcels in Mumbai and Pune. To authenticate these counterfeit documents, Chavan is said to have forged the signature of a Deputy Secretary of the Maharashtra government. Additionally, he is accused of registering these forged documents through a registrar, further facilitating the acquisition of properties in Mumbai and TDR for land parcels in the two cities.

The FIR was filed on the complaint of Sion based businessman Kedar Degwekar, 57, who was known to Chavan since 2019.

According to the FIR, Chavan defrauded the complainant and other people by accepting money in his account under the pretext of selling them government quota properties (lands and flats) on concessional prices using his clout in the Mantralay and other government departments.

Degwekar’s complaint stated that he and his family had been seeking an affordable housing flat and were introduced to Chavan through a common acquaintance. Chavan assured Degwekar that, having strong connections within the state government, he could secure high-value flats at a fraction of their market price. Chavan allegedly claimed that these properties were available under the government quota and would be sold through a ministry-level process. The sale would be registered at the stamp registration office, with officials from both the Urban Development and Housing Departments overseeing the transaction, which would take place both online and offline. Once all the paperwork was completed, the relevant district collector’s office would issue the possession letter and original sale deed, after which the flat could be occupied. Chavan further explained that this process could take some time.

Purushottam Chavan allegedly advised Degwekar that due to the high demand for government quota houses, the entire process needed to remain confidential. He instructed Degwekar not to make photocopies of any documents they submitted. Trusting Chavan, Degwekar proceeded with the process.

Chavan promised Degwekar and his wife a 3 BHK flat in the 25 South project in Prabhadevi offering it at a significantly lower price than the market rate. The flat, valued at anywhere between Rs 7 to Rs 7.5 crores, was allegedly offered to them for Rs 3.5 crores under the government quota. Trusting Chavan, Degwekar paid Rs 3.33 crores in installments, including Rs 14.75 lakh in January 2020. He filled out the required forms for the government-subsidised housing scheme and signed documents, believing the deal was legitimate. Chavan assured him that the property documents, including the sale agreement and registration papers, would be handed over once the full payment was made.

To make the deal appear authentic, Chavan falsely claimed to have registered the properties at the sub-registrar’s office in Thane and the Stamp Registration Office at Parel-Sewri. The accused allegedly sent photographs of fake documents to the victims, presenting them as genuine, and provided photocopies of the same. However, after several months of delays, Degwekar became suspicious when he was denied access to the property or any official documents.

In the FIR, Degwekar stated, “Chavan told us that we would have to give money to him, which he would then deposit with the government, and once that was done, the allotment procedure would be completed, and we would get possession.” He agreed to the process, believing Chavan’s assurances.

The complainant further stated that Chavan had accepted money from 19 other victims and provided them with fraudulent sale agreement documents, which falsely listed government officials as the sellers of the government quota flats, including Prasad Desai, Sanjay Patil, Ganesh Patil, Deepak More, N D Nirmale, Govind Sawant, Shashank Limaye, and Yashwant Pawar.

According to the complaint, the alleged crime took place in a house above the Colaba police station, the official government residence of Chavan’s IPS officer wife.

Despite several attempts to obtain the documents, including a supposed meeting in September 2020 for registration, Degwekar discovered that the documents were never formally processed. In a desperate move, he sought help from another victim, Rao Saheb Desai, but the situation worsened.

The situation took a significant turn in May 2024 when Purushottam Chavan was arrested by ED in a Rs 263 crore TDS fraud case. This raised further doubts about the legitimacy of the 25 South project and the scam behind the government-subsidized housing deal, according to the FIR.

Now, Kedar Degwekar is left with no option but to seek legal recourse in an attempt to recover the money he paid under the false pretenses of securing a government-approved flat.