ED arrests Ambience group promoter Raj Singh Gehlot in Rs 800 crore bank loan fraud case
India

ED arrests Ambience group promoter Raj Singh Gehlot in Rs 800 crore bank loan fraud case

The case against Gehlot is based on a 2019 FIR by Jammu's anti-corruption bureau for alleged money laundering in the construction of 5-star Leela Ambience Convention Hotel in Delhi.

   

Ambience Mall in Gurugram | Commons

New Delhi: The ED has arrested Raj Singh Gehlot, promoter of the Ambience group, in a money-laundering case linked to an alleged bank loan fraud of Rs 800 crore, officials said on Thursday.

They said Gehlot is expected to be produced before a court here after he was arrested under the provisions of the Prevention of Money Laundering Act (PMLA).

The central probe agency had raided Gehlot, his company Aman Hospitality Private Limited (AHPL), some other firms of the Ambience group, director in the company Dayanand Singh, Mohan Singh Gehlot and their associates in July last year.

The ED case against Gehlot, who is also a promoter of the Ambience Mall in Gurugram, is based on a 2019 FIR of the Anti-Corruption Bureau of Jammu against AHPL and its directors for alleged money laundering in the construction and development of the five-star Leela Ambience Convention Hotel located at 1, CBD, Maharaj Surajmal Road, near the Yamuna Sports Complex in Delhi.

The ED probe found that “a huge part of the loan amount of more than Rs 800 crore, which was sanctioned by a consortium of banks for the hotel project, was siphoned off by AHPL, Raj Singh Gehlot and his associates through a web of companies owned and controlled by them”.

“A substantial part of the loan money was transferred by AHPL to several companies and individuals on the pretext of payment of running bills and advance for supply of material and work executed,” the agency had alleged.

The employees of the Ambience group and Gehlot’s associates were made directors and proprietors in these companies and Gehlot was the “authorised signatory” in many of these entities, it had said.

“No material was supplied and no work was executed and almost the entire amount was immediately routed back to the entities owned by Raj Singh and Sons HUF (Hindu undivided family) and his brother’s son.

“Money was further siphoned off through multiple layers in a complex web of group entities,” the ED had said.


Also read: CBI books Gurugram Ambience mall chairman over alleged illegal use of land, raids 4 sites