Earlier, the ED had arrested Babulal Varma and Kamal Kishor, managing director and chairman of the Omkar group, respectively, in the case along with Sachin Joshi, promoter of J M Joshi group.
The money laundering case was based on the FIR filed in Aurangabad by a businessman, who had invested in a Slum Rehabilitation Authority (SRA) scheme project in Wadala and afterward, the Omkar group took over the project.
ED alleged that number of eligible slum dwellers was manipulated in 2016, just after Omkar group took over the project after which the SRA officials had increased the FSI of the plot from 2.05 to 4.
The ED alleged that Omkar group had created a notional 3.5 lakh sq ft saleable component on the plot with the help of manipulated documents and mortgaged it with Yes Bank for taking Rs 410 crore loan for the project.
The ED accused the Omkar group for not using the money for the Wadala project and diverted it to their other group companies, including for constructing the building at Worli. Omkar group told the ED that they merged Wadala group with their Worli project where they had used the money.
ED officials said that during the investigation they found that loan amount Rs. 410 Crore was fraudulently acquired by Surana Developers Wadala, LLP, a sister concern of Omkar group through falsely increased slum dwellers numbers and FSI.
Out of Rs. 410 Crore, an amount of Rs. 330 Crore was laundered into the sale building of Omkar Group and an amount of Rs.
80 Crore approximately was laundered through Sachin Joshi and his Viiking Group of companies under the guise of services and investment.