ED Arrests Noida-based Developer for scamming Home Buyers

In a case involving the purported diversion of Rs. 107 crore in homebuyers' payments, the Enforcement Directorate announced on Friday that it has detained the primary promoter of a Noida-based real estate company under the anti-money laundering statute.

Anil Mithas of the Unnati Group was arrested. He was placed under the ED's custody till April 24 by a special Prevention of Money Laundering Act court in Ghaziabad, Uttar Pradesh, the federal investigative agency said in a statement.

A Special Investigation Team established by the Uttar Pradesh government filed formal complaints against Unnati Fortune Holdings Limited and its promoters for "cheating and fraud" totaling Rs. 107 crore, which is the basis for the money-laundering case.

According to the ED's investigation, Unnati Fortune Holdings Limited and IVRCL Infrastructure and Projects Limited collected ₹522.9 crore from homebuyers between 2012 and 2019 for a residential project called ARANYA, which is situated in Sector 119 in Noida, Uttar Pradesh.

The promoters "siphoned off" the remaining funds to other entities in the form of "false loans and advances, share premium, advance payment for material, deposits etc." before using "some part" of the funds for construction.

According to the ED, a lack of funding caused the Noida project to stall.

In the month of January, Dundigal police arrested the owner of a real estate company on Thursday for allegedly cheating customers by failing to deliver promised services in a villa project.

G Vijay Lakshmi is the owner of Sri Laxmi Constructions, Laxmi Magnus Constructions, and Bhavana GLC Cribs, located in Mallampet. In 2018, she sold villas in various sizes—ranging from 120 to 300 square yards—promising amenities such as a swimming pool, a yoga room, and more.

According to police, the buyers, many of whom had taken loans or sold their properties to buy the villas, were promised key amenities.