The Enforcement Directorate (ED) on Wednesday moved a special court seeking the production of Nashik-based Ashok Kharat, who is accused of running a money laundering operation by exploiting spiritual faith. The agency uncovered banking transactions exceeding Rs 70 crore.
Modus Operandi
The ED's plea stated that Kharat used to gain the confidence of followers and extorted huge cash from devotees and victims, converting it into accounted money through banking channels with the help of associates. He allegedly opened 60 bank accounts using devotees' documents without their consent, with 43 accounts opened in a single day. All accounts were linked to his mobile number, giving him control over the funds. Cash deposits of over Rs 9 crore were routed through these accounts, described as proceeds of crime from organised extortion and religious manipulation.
Extortion and Manipulation
The allegations across multiple FIRs indicate a pattern of grave and organised criminal activities involving extortion through religious manipulation, inducement, and drug-facilitated acts targeting victims across Maharashtra. Kharat allegedly gained victims' trust by offering religious guidance and business support, involving them in rituals and meetings, and induced them to spend money on foreign travel, a luxury Mercedes, medical treatment, construction, and other purposes. When one complainant demanded a refund after realising he had been misled, Kharat allegedly threatened him.
The extortion from one complainant is alleged to be Rs 4–5 crore. The application alleged that Kharat administered prasad or drinks laced with sedatives to women, sexually assaulted them while unconscious or semi-conscious, recorded the acts, and used the recordings to blackmail victims and extort money. It also alleged an extortion racket operated with aides to extract crores under the guise of settling cases, using deceptive demonstrations including staged rituals and props such as remote-controlled fake snakes and tiger skins.
Kharat allegedly sold common items like wild tamarind seeds as blessed items for Rs 10,000 to Rs 1 lakh by claiming divine healing powers, and used threats to coerce landowners into selling valuable land at undervalued prices.
Bank Account Trail
In its PMLA probe, the ED found that Kharat opened 60 bank accounts in the names of various individuals with Samata Nagari Cooperative Credit Society in Rahata. The mobile number linked to all accounts allegedly belonged to Kharat, and he was listed as nominee in all accounts. The agency said 43 accounts were opened on May 25, 2021, in addition to five accounts opened earlier in the names of family members of Arvind Pandurang Bawake. The remaining accounts were opened on October 30, 2024 (nine accounts) and October 31, 2024 (three accounts), again with Kharat as nominee and his mobile number linked.
The ED alleged that these 60 accounts were interlinked to 48 special saving accounts described as fixed deposits, and transactions worth more than Rs 70 crore were conducted through them, including credit transactions of Rs 35.5 crore and debit transactions of Rs 35.2 crore. Cash deposits of Rs 9.2 crore were made into these accounts, and the source of the cash is to be ascertained from Kharat.
Role in Cooperative Society
The ED also referred to Shri Jagdamba Mata Gramin Bigar Sheti Sahakari Patsanstha Maryadit, stating Kharat served as vice-chairman from 2007 to 2012 and chairman from August 3, 2022 to September 3, 2024, and was an authorised signatory to the patsanstha's Saraswat Bank accounts. The agency alleged he opened 34 FD/current accounts in the names of various benami persons between 2014 and 2024, including two accounts in his and his spouse Kalpana Kharat's names, and that these accounts were closed in 2023–2024 by withdrawing FD amounts in cash. It alleged the accounts were opened without obtaining or maintaining account opening forms or KYC documentation.
Investigation and Arrests
The ED conducted searches at Kharat's residential and office premises, recovering property documents and real-estate related records that are under scrutiny, with money trails being examined. The agency alleged Kharat converted cash extorted from devotees and victims into accounted money through banking channels using associated persons.
The ED told the court that Kharat's production is required to advance the investigation, identify other persons' roles, quantify proceeds of crime, trace layering and ultimate beneficiaries, confront him with documents and statements recorded under PMLA, and examine possible cross-border implications of the proceeds of crime.
An SIT in Nashik arrested Kharat on March 18, 2026, in the predicate offence case. Open sources indicate around 10 FIRs against him being investigated by SIT Nashik, along with two cheating FIRs at Shirdi and Rahata. The SIT has been taking custody of Kharat in each FIR sequentially for interrogation in sexual assault cases. The ED sought directions for ED custody on priority in view of alleged money-laundering activities.
