Synopsis
Indian authorities have detained Ashish Bhalla of WTC Group for six days following real estate fraud allegations. The Enforcement Directorate's investigation reveals Bhalla's role in duping thousands of investors and misappropriating funds exceeding Rs 3,000 crore across multiple states.Key Takeaways
- ED Arrests Ashish Bhalla for a significant fraud case.
- Custody granted for six days to prevent tampering.
- Fraud exceeds Rs 1,000 crore involving WTC Group.
- Investigation based on 30 FIRs.
- Funds diverted to shell companies and abroad.
New Delhi, March 7 (NationPress) A special court in Gurugram has authorized the Enforcement Directorate (ED) to hold Ashish Bhalla, the promoter of WTC Group of Companies, for six days following his arrest earlier today. This arrest is part of an extensive investigation into a significant real estate fraud that has swindled thousands of investors and businesses.
Bhalla was taken into custody by the ED's Gurugram Zonal office, invoking the Prevention of Money Laundering Act (PMLA), 2002, in connection with a fraudulent scheme involving WTC Faridabad Infrastructure Pvt Ltd and other entities, exceeding a whopping Rs 1,000 crore.
The ED's action aims to thwart any potential tampering with evidence and to facilitate ongoing investigations under the PMLA, 2002.
The inquiry was initiated following the filing of more than 30 FIRs by the police in Faridabad, the Economic Offences Wing (EOW) of Delhi Police, and various other law enforcement bodies.
These FIRs accused the WTC Group of committing multiple serious offenses, including cheating, fraud, and criminal conspiracy as defined by various sections of the IPC, 1860, for failing to deliver real estate projects after collecting substantial funds from numerous investors.
Investigations by the ED uncovered that the WTC group was involved in five major projects under the WTC brand and began collecting investments by promising assured returns in exchange for plots and commercial spaces.
However, the funds raised were reportedly diverted to various shell companies for land acquisition at different locations.
Furthermore, the ED's findings suggest that hundreds of crores were also funneled abroad to questionable entities in Singapore, with ownership linked to Bhalla's family members.
Additional investigations revealed that the WTC Group collected over Rs 3,000 crore from various investors across several states and Union Territories, including Haryana, UP, Chandigarh, Gujarat, and Punjab, with a significant portion of the funds never being used for development.
According to the ED, Bhalla is regarded as a primary beneficiary and mastermind behind the group's fraudulent operations, having unlawfully profited from this scheme.
On February 27, the ED conducted search operations while Bhalla was absconding and allegedly influenced key individuals to avoid cooperating with the investigation.
