ED Files Prosecution Complaint in Disproportionate Assets Case Against Rajkot Town Planning Officer.

Headnote:

The Enforcement Directorate (ED) has filed a Prosecution Complaint before the Special Court (PMLA) against Mansukhbhai Dhanjibhai Sagathiya, a public servant serving as Town Planning Officer, Rajkot Municipal Corporation, along with two others. The complaint arises from a disproportionate assets case wherein Sagathiya is alleged to have amassed ₹24.31 crore in assets disproportionate to known sources of income between 2012 and 2024. ED’s investigation uncovered laundering of proceeds of crime through recurring deposit accounts, cash deposits, and investments in various movable and immovable properties. ED has already attached assets worth ₹21.61 crore under Section 5 of the PMLA.

Background:

• ED initiated investigation based on an FIR registered by ACB, Rajkot regarding disproportionate assets of ₹24.31 crore accumulated between 01.04.2012 and 31.05.2024.

• The primary accused, Mansukhbhai Dhanjibhai Sagathiya, was serving as Town Planning Officer, Rajkot Municipal Corporation during this period.

• Investigation revealed that Sagathiya maintained several Recurring Deposit (RD) accounts at Rajkot Head Post Office in the names of his wife Smt. Bhavnaben Sagathiya and son Keyur Sagathiya between 27.02.2015 and 27.06.2022.

• Deposits into these RD accounts were made entirely in cash, indicating concealment of illicit income.

• The closure proceeds of these RD accounts were later used for purchase of immovable properties, forming part of the laundering scheme.

• Numerous bank accounts in the names of Sagathiya, his wife and his son were utilised for placement, layering and integration of Proceeds of Crime (POC).

ED’s Observations:

• ED confirmed that the accused invested POC across multiple movable and immovable assets, including land, buildings, deposits, jewellery and foreign currency.

• The pattern of cash deposits into RD accounts demonstrated deliberate attempts to mask the illegal source of funds.

• A detailed financial trail established that the assets acquired were grossly disproportionate to the accused’s legitimate income.

• On 29.04.2025, ED attached ₹21.61 crore worth of assets under Section 5 of the PMLA, comprising:

– Cash

– Gold, diamond and silver jewellery

– Foreign currency notes

– Expensive watches

– Multiple immovable properties

• The Prosecution Complaint formalises ED’s findings and initiates trial proceedings under the PMLA.

Legal Provisions Discussed:

• Prevention of Money Laundering Act, 2002 – Section 5 (Provisional Attachment of Property), prosecution provisions.

• IPC & Anti-Corruption laws (via ACB FIR) – Disproportionate assets investigation forming predicate offence.

• PMLA Adjudication Framework – Procedures for attachment, investigation, prosecution, and trial before Special Court.