Narcotics smuggler and Dawood aide Iqbal Memon, aka Iqbal Mirchi, who died in 2013

MUMBAI: The Enforcement Directorate (ED) has summoned Neeraj Singal, former promoter of Bhushan Steel , on Friday to inquire about financial transactions between him and narcotics smuggler Iqbal Memon, aka Iqbal Mirchi , who died in 2013.

ED will ask Neeraj about Rs 20 crore allegedly transferred from one of his companies to Mirchi sometime in 2010-11, said sources.

This came even as ED on Tuesday arrested Humayun Merchant (70) and Rinku Deshpande, who allegedly helped Mirchi to create forged tenancy papers for properties in Worli and in money laundering .

Merchant, who was allegedly Mirchi’s frontman, has been remanded in ED custody till Thursday. Deshpande was arrested late on Tuesday and will be produced in court on Wednesday. ED alleged that Merchant held power of attorney on Mirchi’s Worli properties. It alleged that Merchant had first negotiated a redevelopment deal for the buildings with Jayant Soni of Joy Homes Creation after arranging a meeting with Mirchi in London , but when land prices appreciated, the deal was scrapped and Merchant negotiated a deal with Sunblink Real Estate.

In its remand plea, ED claimed that Mirchi created fictional tenants with childhood friend Merchant’s help and later sold the buildings to Sunblink, which paid Rs 127 crore of a total promised amount of Rs 170 crore to Merchant in the name of the tenants he represented. ED said the remaining payment was to be made by November 30, 2019. ED believes that the payment of Rs 127 crore has been made through hawala after opening bank accounts in Chennai in the name of “tenants”, Merchant and his son through forged KYCs.

ED alleged the accounts were opened by Deshpande, and that immediately after the transferred money was withdrawn, the accounts became inactive. ED alleged that Bangalore-based Deshpande was known to Mirchi and his family. Her name emerged during the questioning of Ranjeet Singh Bindra, who was arrested on October 10 for facilitating the Worli deal between Mirchi and Sunblink.

Bindra allgedely received over Rs 40 crore in commission from Sunblink for his services through Deshpande. ED is inquiring into her role in laundering Rs 2,186 crore Sunblink received as a loan from DHFL, whose promoter, Kapil Wadhawan, was questioned last week. ED said most of the money was transferred abroad through the Chennai-based accounts via Dubai and other foreign locations.

Merchant’s lawyer denied that the Chennai accounts belonged to him. Merchant told the court that he knew Mirchi as they were childhood friends, went to the same school and lived in the same locality. He said Mirchi was related to him as his daughter is married to Mirchi’s brother’s son.

Denying that he was given power of attorney, he said, “No transfer of tenants was done.”

Merchant also claimed to have received Rs 5 crore from Kapil’s brother Dheeraj Wadhawan. “It was transferred to a BOI account and there are receipts. No other transactions have taken place,” he told the court.

