Synopsis
New Delhi/Gurugram, March 6 (NationPress) The Directorate of Enforcement (ED) has raided the real estate firms WTC Group and Bhutani Group, uncovering significant financial irregularities that indicate a serious breach of trust and fraud against numerous homebuyers.Key Takeaways
- ED raids uncover financial irregularities in WTC Group and Bhutani Group.
- Over Rs 3,500 crore collected from investors for 15 projects.
- Thousands of buyers left stranded with incomplete developments.
- Investigation initiated based on numerous FIRs from homebuyers.
- Bhutani Group denies involvement in fund transfers from WTC.
New Delhi/Gurugram, March 6 (NationPress) The Directorate of Enforcement (ED) has conducted raids on the real estate firms WTC Group and Bhutani Group, uncovering extensive financial discrepancies that point to a significant breach of trust and fraud against numerous homebuyers associated with these companies and their affiliates.
During the investigation, documents revealing the collection of over Rs 3,500 crore from various investors linked to 15 projects in the Delhi/NCR area were discovered.
Moreover, critical documents regarding WTC Group and Bhutani Group were located and confiscated, indicating that assets valued in the thousands of crores have been transferred to Bhutani Group at minimal value, effectively moving the Proceeds of Crime (POC) at a fraction of their worth.
Records pertaining to cash transactions involving the Group were also uncovered.
Countless homebuyers and investors are now demanding immediate action in what is being termed one of India's most significant real estate frauds.
The scandal has left over 20,000 buyers in limbo with incomplete developments and financial damages reaching into the thousands of crores.
On February 27, the ED's Gurugram Zonal Office executed search operations at 12 sites across Delhi, Faridabad, and the NCR region targeting WTC Group and its promoter Ashish Bhalla, along with Bhutani Group and its promoter Ashish Bhutani, under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on numerous FIRs filed by the Economic Offences Wing (EOW) of the Delhi Police, PS BPTP Faridabad, and PS Faridabad Central following complaints from hundreds of homebuyers and investors regarding WTC Group and its promoters for cheating, criminal breach of trust, and fraud against many homebuyers.
The FIRs alleged that WTC Faridabad Infrastructure Private Limited and its promoters deceived the public and plot buyers into investing in their project located at Sector 111-114, Faridabad for the allotment of residential plots.
According to the ED, the promoters/directors orchestrated a criminal conspiracy and misappropriated the hard-earned money of the plot buyers by failing to complete the project on time and not delivering the plots for over 10 years.
It was also claimed in the FIRs that Bhutani Infra Group acquired the WTC Group and has re-launched the project at Sector 111-114, Faridabad, leaving plot buyers confused and defrauding investors by enticing them to relinquish their units.
Bhutani Group signed an agreement in July 2024 to obtain a majority stake in WTC.
Of the 15 key projects being managed by the group, very few have seen completion, suggesting a well-planned Ponzi scheme and the establishment of assets under different entities while diverting funds abroad.
“Additionally, it was revealed during the search operations that over Rs 200 crore has been diverted to Singapore and the US, indicating investments abroad for the acquisition of international assets,” stated the ED.
Furthermore, “assets valued at Rs 1,000s of crores have been identified in the name of WTC Group.”
Various fixed deposits associated with WTC Group have been frozen and seized, along with jewelry and bullion worth Rs 1.5 crore.
In response, Bhutani Infra released a statement, firmly denying any involvement in land or fund transfers from the controversial real estate group.
“No land or funds were transferred to Bhutani Infra during its short association with WTC, including any share transfers in land-holding companies to Bhutani Infra or its directors,” the company stated, asserting that it has cut all ties with the WTC Group.
