The Enforcement Directorate (ED) on Tuesday arrested Humayu Merchant – close aide of gangster Iqbal Mirchi and Dawood Ibrahim – and Rinku Deshpandey in the alleged money laundering case related to properties of gangster Iqbal Mirchi. While Merchant was produced before a special Prevention of Money Laundering Act (PMLA) court and sent to ED custody till October 24, Deshpandey will be produced in court on Wednesday.

According to ED sources, Merchant is one of the masterminds who received Rs 50 crore for planning and executing the hawala transactions, including preparation of fake documents. He invested his ill-gotten money to buy rented properties, lodges and restaurants in south Mumbai in his wife's and sons' names. Some of them include Guest Lodge; Comfort Inn Heritage Hotel compound, Byculla; Guest Lodge, Lamington Road-Lane of Old Imperial Cinema; Zaytoon Restaurant, Claire Road, Byculla;