ED conducts searches at city developer’s premises

The Enforcement Directorate (ED) conducted searches in Mumbai as part of its money-laundering investigation into developer Lalit Tekchandani, who is facing police cases for alleged cheating of homebuyers. The ED is probing the proceeds of crime and the beneficiaries in the case. Last month, the Mumbai police arrested Tekchandani on charges of cheating flat buyers.

MUMBAI: The Enforcement Directorate (ED) carried out searches at multiple locations in the city on Wednesday as part of its money-laundering investigation against developer Lalit Tekchandani, who, along with a few others, is facing police cases on allegations of cheating homebuyers.

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Tekchandani is under the scanner of the probes for his housing project located at Taloja in Navi Mumbai, in which more than 105 homebuyers had allegedly made payments for their flats but did not get possession of their homes, agency sources said. ED’s probe is based on several police cases related to alleged cheating against the developer who was accused by several homebuyers of not providing them the possession of flats for which they had paid.

Mumbai police’s Economic Offences Wing arrested Tekchandani last month on charges of cheating flat buyers with unfulfilled promises of homes on grounds of alleged non - cooperation with the investigation.

The ED’s searches were conducted on premises and individuals associated with Tekchandani to gather case-related documents and records, agency sources said. The agency’s probe is ascertaining the proceeds of crime generated in the case and the end - beneficiaries, the sources said. Last month, the state police had filed four cases against Tekchandani. In one of the police cases, a complainant, who operates a watch repairing business in Chembur, had approached the Chembur police with a complaint against Tekchandani and five others in January.

According to the complainant, he had met Tekchandani, who runs a firm, Supreme Constructions, at a location in Chembur. The complainant during the meeting was informed about Tekchandani’s project, Hex City / Clean City in Taloja and that the possession of the built flat can be given by 2017 - 2018. But the construction work had allegedly stopped in 2016, according to the sources. The complainant had allegedly paid several lakhs for the flat.

Tekchandani had been questioned for more than nine hours by the EOW before he was placed under arrest last month. The EOW had in January also carried out searches at Tekchandani’s residential/official premises located in Chembur and Bandra Kurla Complex.