The Enforcement Directorate (ED) announced on Friday that it has apprehended the primary promoter of a real estate firm based in Noida under the anti-money laundering legislation, in connection with the alleged misappropriation of funds belonging to home buyers amounting to Rs 107 crore.
Anil Mithas, associated with the Unnati Group, was detained on April 16. A special court in Ghaziabad, Uttar Pradesh, operating under the Prevention of Money Laundering Act (PMLA), has remanded him to ED custody until April 24, as stated by the federal investigative agency. This money-laundering case originates from FIRs lodged by a Special Investigation Team (SIT) established by the Uttar Pradesh government against Unnati Fortune Holdings Limited (UFHL) and its promoters, accusing them of “cheating and fraud” involving Rs 107 crore.
The Enforcement Directorate (ED) reported that its investigation revealed that Unnati Fortune Holdings Limited and IVRCL Infrastructure and Projects Limited collected Rs 522.9 crore from home buyers between 2012 and 2019 for a residential project named ARANYA, situated in Sector 119 of Noida, Uttar Pradesh. Rather than utilizing the entire sum for construction purposes, the promoters allocated only a portion of the funds for this purpose and “siphoned off” the remainder through “fraudulent loans and advances, share premiums, advance payments for materials, deposits, and other means” to various companies.
The ED indicated that the Noida project faced delays due to insufficient funds. An audit report commissioned by the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) revealed a “diversion” of Rs 107 crore in funds, according to the agency. Additionally, several police FIRs have been filed in relation to the case, uncovering that flats were “fraudulently” sold to multiple buyers.
The promoters neglected their responsibilities to the buyers and breached their trust, resulting in financial distress for numerous families. Hundreds of home buyers were left stranded, and significant amounts of money were misappropriated by the promoters, the ED stated. Consequently, by engaging in fraudulent activities, the accused generated funds that are deemed proceeds of crime, the agency concluded.
