ED arrests self-styled godman Ashok Kharat in Rs 70 crore money laundering case

The Enforcement Directorate on Tuesday arrested self-styled godman Ashok Kharat in connection with an alleged Rs 70-crore money laundering case after obtaining permission from a special court in Mumbai.

Kharat, who is already lodged in Nashik jail in separate criminal cases, was produced before a Special PMLA Court on a production warrant. The ED sought the court’s approval to formally arrest him under the provisions of the Prevention of Money Laundering Act.

Allowing the agency’s plea, the court observed that investigators needed to trace alleged unaccounted cash transactions and identify beneficiaries linked to the suspected racket.

“The role of Kharat in the commission of the money laundering offences is also described in detail,” the court noted, adding that his arrest appeared necessary after considering the submissions of the special public prosecutor and the investigating officer.

Following the order, the ED completed the required legal formalities and formally arrested Kharat. He is scheduled to be produced before the special court on Wednesday, when the agency is expected to seek his custodial remand for further interrogation.

Probe stems from extortion and assault allegations

The ED registered its money laundering case on 6 April on the basis of a Nashik Police FIR accusing Kharat of extortion, religious manipulation and drug-facilitated assault on multiple women.

The self-styled godman is also facing several criminal cases related to alleged rape and sexual exploitation. He was arrested by Nashik Police on 18 March after a married woman accused him of repeatedly raping her over a three-year period.

According to the ED, Kharat allegedly operated a large-scale extortion network and laundered more than Rs 70 crore through a complex web of benami bank accounts.

Investigators claim he opened around 60 accounts in a single day at the Samata Nagari Cooperative Credit Society in Ahilyanagar district using documents belonging to victims without their knowledge or consent. Transactions exceeding Rs 70 crore were allegedly routed through these accounts.

Assets under scanner

The agency has alleged that proceeds generated through extortion and fraudulent activities were used to acquire movable and immovable assets in the names of Kharat and his family members.

Investigators further claim he exploited followers by selling ordinary items such as tamarind seeds and honey as “blessed” products while extracting money from devotees through deceptive means.

In its application seeking a production warrant, the ED told the court that Kharat’s custody was necessary to uncover the broader conspiracy, identify the ultimate beneficiaries and trace the complete money trail, which it suspects could have international links.

Meanwhile, a Special Investigation Team is probing 12 cases of alleged sexual exploitation and financial fraud registered against Kharat in Nashik and Ahilyanagar districts.