Challenges Intensify for Real Estate Developer Bhutani Group Following ED Raids

Synopsis

The Enforcement Directorate's recent searches at Bhutani Group's offices in Delhi-NCR have amplified the company's ongoing troubles. This real estate developer has previously faced investigations, including major tax raids by the Income Tax department, leading to significant financial implications. Bhutani Infra has also severed ties with WTC Group, reaffirming its commitment to independent growth.

Key Takeaways

ED raids escalate issues for Bhutani Group.
Previous Income Tax raids resulted in major cash seizures.
Unaccounted cash of Rs 595 crore was revealed.
Bhutani Infra acquired 'Logix City Center' for Rs 1,000 crore.
CEO Ashish Bhutani confirmed complete withdrawal from WTC Group.

New Delhi, Feb 27 (NationPress) - The Enforcement Directorate (ED) conducted search operations on Thursday at the offices of Bhutani Group and WTC Builders, along with their promoters in the Delhi-NCR region, escalating challenges for the Noida-based real estate developer, which has faced a turbulent past.

This marks yet another instance of an investigative agency targeting the Bhutani Group, which has been scrutinized by various probes previously.

In January of last year, 40 teams from the Income Tax (IT) department executed raids on four builders in Noida for tax evasion, with Bhutani Group being included among those investigated. Over six days, the IT department confiscated cash totaling Rs 1,500 crore.

During these operations, officials also uncovered two pen drives hidden by Bhutani Group employees. Data from these drives indicated that the group accepted unaccounted cash amounting to Rs 595 crore since the fiscal year 2019-20. The group received cash of Rs 429 crore during the fiscal years 2019-20, 2020-21, and 2021-22.

In November, Bhutani Infra acquired the commercial project 'Logix City Center' from PAG and Logix group promoters for an estimated value of around Rs 1,000 crore.

As per the results of Logix BuildTech Pvt Ltd available on the Bhutani Group's website, the company reported a loss of Rs 29.39 crore in the second quarter of the fiscal year 2024-25, while its operational income for this period was Rs 21.70 crore.

Earlier this month, Bhutani Infra confirmed its withdrawal from any collaboration with the WTC Group, stating it will not be involved in any of the WTC Group's ongoing, completed, or future projects.

Ashish Bhutani, CEO of Bhutani Infra, remarked: "Our initial dialogues with the WTC Group aimed to align with Bhutani Infra's broader vision to enhance India's commercial real estate landscape."

“Nevertheless, we have opted to completely dissociate from any connection with the WTC Group. Bhutani Infra remains dedicated to its independent growth strategy and will persist in delivering high-quality commercial projects that embody our principles of trust, integrity, and excellence with honesty and transparency,” he added.

In July 2024, Bhutani Group had signed an agreement to acquire a majority stake in WTC.