New Delhi: The Enforcement Directorate (ED) on Friday conducted searches at 10 premises connected to a builder group and its key management personnel at Bengaluru and Mumbai, officials said.
The searches are still underway. ED’s Bangaluru zonal office is conducting the search under Section 17 of the Prevention of Money Laundering Act (PMLA).
The searches are being conducted on money laundering allegations against the company in its project in Devanahalli Taluk in Bengaluru, the officials said.
“The integrated township project was to be handed over to buyers in 2018. However, till 2024, only 49 per cent of the project was completed. The company has failed to hand over the project and has neither returned the money to the buyers,” said the officials.
It is alleged that “the accused company, along with its key management personnel, have cheated various gullible customers by inducing the customers in many ways”.
As per the ED, the firm and its key management personnel cheated various gullible customers by promising to pay EMIs to the banks against the loans taken by the home buyers from the financial institutions on behalf of the buyers until completion of the project; and by promising many buyers huge discounts, if they pay full amount in advance against the bookings.
It is also accused that “the builder also induced the buyers who purchased units, flats and apartments in the project with buyback scheme, 2X-scheme, etc.”
It is alleged that the directors of the company have “cheated its buyers collectively to the tune of hundreds of crores and misappropriated the funds.”
“There are multiple FIRs against the company and its promoters, which necessitated the investigation under PMLA,” added the officials.