ED arrests two promoters of realty group in homebuyers 'fraud' case

ED arrests two promoters of realty group in homebuyers 'fraud' case

New Delhi, The Enforcement Directorate on Wednesday said it has arrested two promoters of Gurugram-based realty company Vatika Group in a money laundering case linked to alleged fraud with homebuyers.

ED arrests two promoters of realty group in homebuyers 'fraud' case

Anil Bhalla, Chairman-cum-Managing Director, and Gautam Bhalla, promoter of Vatika Limited, were taken into custody on September 28. They were produced before a special Prevention of Money Laundering Act court in Gurugram on Tuesday which sent them to ED custody till October 3, the central agency said in a statement.

The company or the promoters could not be contacted immediately for a response.

The money laundering investigation stems from a Delhi Police Economic Offences Wing FIR against the Vatika Group and the said promoters which alleged fraudulent inducement, non-delivery of residential plots and related offences.

The ED said Anil Bhalla "personally supervised" the key decisions in the transactions under investigation and Gautam Bhalla was a key promoter of the group who executed important agreements, held directorships in, and exercised control over, its land-owning entities, and continued to manage its operations.

"The material collected shows that major decisions were taken jointly by these two persons," the agency said.

According to the ED, between 2010 and 2012, seven purchaser entities paid about ₹260 crore upfront to Vatika Limited for residential plots in its projects Vatika India Next and Vatika India Next-2 , Gurugram.

Plot-wise agreements were executed in 2014 and 2015 and subsequently the project layouts were revised, the plots originally allotted were renumbered/relocated, and the project land continued to be allotted and sold to different purchasers, it said.

In Vatika India Next-2, not a single plot out of about 1.10 lakh sq. yds. purchased for ₹90 crore has been delivered even after about 14 years, while delivery in Vatika India Next has been only partial, the agency said.

"Thus, substantial portions of the plots comprising value of approximately ₹140.73 crore remain undelivered even today," the ED alleged.

This article was generated from an automated news agency feed without modifications to text.