Mumbai EOW arrests IPS officer Rashmi Karandikar’s husband, Purushottam Chavan, in a ₹7.2 crore BMC redevelopment scam. The case exposes deep flaws in urban governance and influence peddling within public systems.

Mumbai EOW Arrests IPS Officer Rashmi Karandikar’s Husband in ₹7.2 Crore BMC Redevelopment Scam

The Economic Offences Wing (EOW) of Mumbai has arrested Purushottam Chavan, husband of senior IPS officer Rashmi Karandikar, for allegedly defrauding a developer of ₹7.2 crore under the guise of facilitating approvals from the Brihanmumbai Municipal Corporation (BMC). The case reveals deep concerns over influence peddling and systemic corruption in Mumbai’s urban redevelopment process.

Scam Overview: ₹7.2 Crore Fraud for BMC Clearance

At the center of this high-profile case is an alleged promise by Chavan to a reputable Mumbai-based developer, claiming he could secure BMC redevelopment clearances by leveraging his influential connections. Over time, he reportedly collected ₹7.2 crore in multiple tranches, stating the money was essential for navigating bureaucratic channels. However, no approvals materialized, leaving the complainant in financial and reputational distress.

Legal Charges: IPC Sections for Cheating and Trust Breach

An FIR has been lodged under the following sections of the Indian Penal Code (IPC):

Section 420 – Cheating

Section 406 – Criminal breach of trust

Officials are also investigating the possibility of a larger criminal conspiracy, indicating that more individuals may be involved in the fraudulent scheme.

Key Individuals and Institutions Involved

Purushottam Chavan: The main accused, now in police custody.

Rashmi Karandikar: A senior IPS officer; not named in the FIR but under public and media scrutiny due to her relation to the accused.

The Complainant: A respected Mumbai developer, who now faces both financial losses and project delays.

BMC: Its clearance process is under investigation for potential manipulation and corruption.

Current Status: Custody and Financial Trail

As of June 24, 2025, Chavan remains in police custody. Investigators are following the money trail to assess whether the funds were siphoned, laundered, or used to bribe officials. There is an ongoing probe into the possible involvement of BMC insiders.

Why This Scam Is a Major Red Flag for Urban Governance

This incident underscores systemic weaknesses in Mumbai’s redevelopment protocols. Influence peddling and exploitation of bureaucratic loopholes compromise the integrity of public institutions. Given the city’s already burdened redevelopment landscape, this case brings urgency to implementing transparent and tamper-proof clearance systems.

Constitutional Angle: Upholding Equality Before the Law

This case echoes the principle enshrined in Article 14 of the Constitution of India, which affirms equality before the law. The action taken by the EOW sends a powerful message: no individual, regardless of status or affiliation, is above the law.

A senior EOW officer remarked:
“Our message is clear — no individual is above the law, no matter their rank or relationships.”