The Enforcement Directorate (ED) has intensified its crackdown on real estate fraud in the Delhi-NCR region, with a recent investigation focusing on a prominent Gurugram realty firm, Krrish Realtech, and its key promoters. This significant development in the ED fraud probe has brought to light a complex web of financial irregularities and alleged cheating of hundreds of homebuyers. The federal agency’s investigation, conducted under the Prevention of Money Laundering Act (PMLA), alleges that the company and its promoter, Amit Katyal, illegally collected over ₹500 crore from more than 400 unsuspecting customers. The core of the accusation is the alleged diversion of a staggering ₹205 crore of these funds, intended for a Gurugram-based housing project, to a luxurious real estate and hotel venture in Colombo, Sri Lanka. This act of siphoning off funds has become a central point of the ongoing ED fraud probe.
A Deep Dive into the Allegations Against a Gurugram Realty Firm and Its Promoters
The modus operandi, as detailed in the ED’s chargesheet, reveals a calculated and fraudulent scheme. The realty firm reportedly lured a large number of homebuyers by promising them residential plots on a 70-acre land parcel in Gurugram, a project estimated to be worth approximately ₹2,000 crore in today’s market. However, the ED’s findings suggest that the company never possessed the necessary licenses required by law to undertake such a project. This alleged lack of legal authorization at the outset lays the foundation for the entire ED fraud probe. The funds collected from the homebuyers, instead of being used for the intended purpose of plot development and construction, were immediately routed to personal accounts of the promoter and various “shell” companies.
A critical component of this financial trail, as revealed by the ED, is the use of a shell company named Mahadev Infrastructure. This entity was allegedly used to channel the ₹205 crore, collected from the Gurugram homebuyers, to a real estate-cum-hotel project in Colombo. The investigation further uncovered that some of these funds were also utilized to acquire other properties, lands, and flats in the names of alleged “front” companies and family members of the promoters. These front companies, including Good Earth Pvt. Ltd., The One Transworks Square Pvt. Ltd. (a Sri Lanka-based company), and Heaven Tradelink Pvt. Ltd., were reportedly used to further layer the illicit transactions, making the money trail difficult to follow.
The implications of this ED fraud probe are profound for the affected homebuyers. The agency’s chargesheet underscores that the promoters never had a genuine intention of delivering the promised plots. The investigation also revealed attempts by the company to “alienate” the undeveloped land from the rightful buyers by allotting it to multiple investors. Furthermore, the promoters allegedly resorted to creating fictitious creditors to file a prepackaged insolvency petition before the National Company Law Tribunal (NCLT). These attempts were thwarted when the homebuyers raised objections, leading to the withdrawal of the application. The ED also found that the list of plot buyers submitted to the Justice Gita Mittal committee, appointed by the Supreme Court, had been falsified to benefit the promoter.
The ED’s action in this case is a significant step in addressing widespread real estate fraud. The agency has already conducted searches and provisionally attached assets related to the case. These attached assets reportedly include the realty project in Sri Lanka and land parcels in Gurugram’s Sector 63, 65, and 70, as well as some immovable properties in Delhi. The legal proceedings are now moving forward, with a local special Prevention of Money Laundering Act (PMLA) court issuing a notice to the accused on August 19.
This case is not the first time the promoter, Amit Katyal, has faced legal scrutiny. He was previously arrested in a separate money laundering case related to a railway land-for-jobs scam, which also involved other high-profile individuals. The continuous and multi-faceted investigations into such individuals and firms highlight the ED’s commitment to curbing financial crimes and protecting the interests of investors and homebuyers. The ongoing ED fraud probe serves as a stark warning to developers and promoters who engage in fraudulent practices and misappropriate public funds for personal gain. It also emphasizes the importance of due diligence for homebuyers before investing their life savings into real estate projects.
This detailed account of the ED’s investigation highlights not just the alleged fraud itself but also the complex legal and financial layers that such schemes involve. The focus remains on the swift and thorough action being taken by the authorities to ensure justice for the hundreds of victims who have been cheated out of their funds.
Source : Mint
