Diversion from real estate fund: ED attaches Alibaug land worth ₹336 cr

The ED’s probe was initiated based on a Feb 2025 case registered by the CBI, following a Bombay High Court order dated January 31, 2025

MUMBAI: The Enforcement Directorate (ED) has provisionally attached 88.47 acres of land at Alibaug in Raigad district, valued at ₹336 crore, as part of its money-laundering probe into the alleged fraudulent diversion of funds from a ₹2,434-crore real estate fund floated by Jai Corp Limited.

Diversion from real estate fund: ED attaches Alibaug land worth ₹336 crore (Hindustan Times file photo)

The ED’s probe was initiated based on a February 2025 case registered by the Central Bureau of Investigation (CBI), following a Bombay High Court order dated January 31, 2025. Jai Corp Limited, Urban Infrastructure Venture Capital Limited (UIVCF), Urban Infrastructure Trustees Ltd and others were named as accused in the CBI case for alleged financial irregularities, diversion of funds and money laundering.

The ED’s investigation revealed that in 2006-07, Jai Corp Limited launched the UIVCF and mopped up ₹2,434 crore from a large number of investors, including public sector banks and public sector financial institutions. The collected amount was subsequently invested allegedly in a number of special purpose vehicles (separate legal companies created by the parent organisation to handle specific tasks), to undertake construction projects across India.

The ED’s investigation revealed that the value of funds in SPVs was allegedly “undervalued” at ₹269.20 crore “in connivance with the management of the UIVCF”. Based on this, investors were allegedly allowed to exit the fund at a significantly undervalued amount, while the residual units of funds were allegedly acquired at a much lower value by five entities related to the promoters of the Jai Corp Limited, ED officials said.

“This fraudulent act resulted in the generation of proceeds of crime of ₹230 crore,” an ED official said.

Accordingly, a provisional attachment order was issued by the ED, attaching immovable properties of the SPV at Alibaug worth ₹230 crore as on October 31, 2022. The present value of the land parcel was ₹336 crore, ED officials said.

An earlier search operation in the case had led to the seizure of ₹1.86 crore in cash and the freezing of balance in demat accounts/mutual funds worth ₹99.47 crore.