In a significant crackdown on money laundering, the Mumbai Zonal Office of the Enforcement Directorate (ED) has filed a formal prosecution complaint in a special PMLA court in Mumbai. The charges are leveled against Ashok Kumar Eknath Kharat, his wife Kalpana Kharat, and four other associates. This action follows an extensive investigation into allegations that the accused exploited religious sentiments to extort vast sums of money from followers before funneling the illicit proceeds through various channels.
Extensive Attachment of Assets
On July 15, the ED invoked Section 5 of the PMLA to provisionally attach immovable properties valued at approximately 19.20 crore, which were held in the names of Ashok Kumar Kharat—also known as 'Captain' or 'Bandhu Baba'—and his family members.
This latest move builds upon earlier enforcement actions. Between April and May 2026, the agency conducted raids under Section 17 of the PMLA, targeting various premises, bank lockers, and vehicles linked to the accused and his accomplices. Those initial operations resulted in the seizure or freezing of assets worth approximately 17.70 crore. Combined, the total value of assets attached, seized, or frozen by the agency in this ongoing case now stands at approximately 36.90 crore.
Modus Operandi of the Fraud
The investigation originated from multiple FIRs filed at police stations across Maharashtra, including those in Sarkar Wada, Shirdi, Sinnar, and Rahata. The evidence gathered by the agency suggests that Ashok Kumar Eknath Kharat preyed upon the faith and religious vulnerability of the public. He allegedly convinced devotees that he was an avatar of Lord Shiva, endowed with divine powers, and offered services ranging from 'Avatar Puja' and curing serious illnesses to removing misfortunes and ensuring success in business and life.
According to the investigating agency, the accused employed methods including extortion, fraud, and criminal intimidation to accumulate wealth, which was subsequently integrated into the financial system through money laundering techniques.
The Web of Money Laundering
Investigators discovered that Kharat utilized two cooperative credit societies to camouflage the proceeds of his crimes. With the complicity of an employee, these entities were used to operate multiple bank accounts fraudulently. The probe further revealed that numerous 'benami' accounts were utilized to deposit and subsequently withdraw large amounts of cash, including funds acquired from the maturity of various investments.
The illicit funds were kept with trusted associates before being reinvested into immovable properties across Nashik, Ahmednagar, Solapur, Pune, and Mumbai, all purchased in the names of family members. The agency maintains that this systematic process was designed to obscure the original source of the funds and present them as legitimate investments.
Current Status of the Accused
Following the progress in the investigation, the ED arrested Ashok Kumar Eknath Kharat on May 19 under Section 19 of the PMLA. He has since been in judicial custody. The agency continues to probe the network to identify additional individuals and assets linked to the illicit operations.
