ED conducts searches in four cities in Unnati Fortune Holdings money laundering case, ET RealEstate
LUCKNOW: The Directorate of Enforcement (ED), Lucknow zone, conducted search operations at eight locations in Agra, Meerut, Noida and Delhi in the case of M/s Unnati Fortune Holdings Limited and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The team carried out searches at both residential and commercial locations belonging to Unnati Fortune Holdings Limited (UFHL), its director Anil Mithas and associated entities. The searches were conducted to locate and identify the Proceeds of Crime (POC) and gather evidence linked to the alleged financial misconduct orchestrated by Mithas, who is the kingpin of the alleged fraud. Mithas was arrested by the ED team from Ghaziabad on Thursday.
The ED initiated an investigation based on various FIRs registered by the UP Police and EOW Delhi under various sections of IPC, 1860, against UFHL, its promoters and others.
The ED investigation revealed that UFHL collected Rs. 522.90 crore from homebuyers for a residential and commercial project in the name of “Aranya” in Sector-119, Noida during 2012-2019.
However, the project did not complete on time and homebuyers felt cheated and started filing complaints at various forums such as UP-RERA and police. In the meantime, the company also defaulted in repaying outstanding dues to various financial creditors, and one such financial creditor filed an insolvency application before NCLT, Delhi, in 2018, which is pending as of now. This process also added an additional cost burden on the homebuyers, resulting in no near solution as promised by Mithas.
ED sources said it was revealed that huge money was siphoned off/diverted by Anil Mithas, being the promoter of the company, to various related entities, shell companies, and companies that are struck off or not related to business activities.
An audit report prepared by M/s Currie & Brown, on the direction of UPRERA, and another transaction audit report prepared by M/s BDO India LLP on the direction of IRP, revealed this diversion/siphoning of homebuyers’ funds for purposes other than the core purpose of construction and development of flats. Apart from that, from several FIRs, it is revealed that flats were fraudulently sold to multiple buyers. In this way, the directors and promoters committed organised financial fraud and criminal conspiracy under IPC Sections 420 and 120-B.
