ED makes two more arrests in Iqbal Mirchi land deal case

New Delhi: The Enforcement Directorate has arrested a close aide of late gangster Iqbal Mirchi in connection with a money laundering case, officials said on Tuesday.

Iqbal Mirchi alias Iqbal Memon was an associate of global terrorist Dawood Ibrahim.

Humayun Merchant was arrested under provisions of the Prevention of Money Laundering Act on Monday night here and ED officials also arrested one Rinku Deshpande, allegedly involved in acquiring the proceeds of crime for one of the brokers in the land deal. Merchant will be produced before a special court in Mumbai for further custody, officials said.

Merchant was stated to be a "close friend" and aide of Mirchi. It is alleged by the ED that Merchant "planted" tenants to purportedly usurp three immovable properties Sea View, Marium Lodge and Rabia Mansion in Worli belonging to the Sir Mohammad Yusuf Trust.

The tenants were "dummy", the agency's probe has found.

Merchant's links with a company Sunblink Real Estate Pvt Ltd, promoted by senior NCP leader Praful Patel, are also under the ED's scanner.

He is accused to have "arranged" a meeting between Mirchi and the promoter of a local real estate firm, Joy Home Creation Pvt Limited, in London to develop these assets and the tenancy rights were transferred to the local company for a short period.

Merchant is stated to have received over Rs 170 crore as part of this real estate sale deal which, the agency states, are alleged illegal funds and proceeds of crime of money laundering.

According to agency officials, another accused in the case, Ranjeet Singh Bindra had brokered the deal for the properties in exchange for a brokerage fee of about Rs 40-50 crore, which was received through Deshpande, who acted as a fake confirming party in the deal.

As per documents recovered from residences of Deshpande, she had received funds of Rs 25-30 crore from Sublink Real Estate, which was later transferred to Bindra through market operators.

The central agency has already arrested Bindra and Haroun Aleem Yusuf, another land broker for allegedly facilitating these deals, in this case early this month.

Patel has also been grilled by it in the case last week.