Uncovering Noida's Real Estate Scandal: Shell Companies and Deceitful Loans
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Synopsis
The Enforcement Directorate has initiated extensive raids linked to Unnati Fortune Holdings Limited, uncovering significant financial fraud involving shell companies and fake loans, with Anil Mithas in custody. Investigations reveal a complex web of deceit affecting countless homebuyers in Noida.
Key Takeaways
- Extensive ED raids across Agra, Meerut, Noida, and Delhi.
- Anil Mithas detained for seven days.
- Critical evidence recovered including documents and digital records.
- Charges of cheating and criminal conspiracy filed against promoters.
- Investigation reveals fraudulent sale of multiple flats to different buyers.
Lucknow, April 19 (NationPress) - The Enforcement Directorate (ED) has executed extensive search operations at eight sites across Agra, Meerut, Noida, and Delhi as part of an investigation into a vast financial scam involving M/s Unnati Fortune Holdings Limited (UFHL) and its promoter, Anil Mithas.
In a notable turn of events, the ED has detained Anil Mithas for a duration of seven days, following a judicial order.
During the recent searches, the agency uncovered critical documents, sale agreements, investment records, and digital evidence, all of which are now under examination, as per the ED's statement.
Officials indicated that this evidence will be utilized to challenge Mithas during questioning while efforts persist to trace the misappropriated funds.
As stated, the searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, focusing on residential and office locations linked to UFHL and associated entities.
ED officials asserted that these operations aimed to identify and confiscate the “Proceeds of Crime” allegedly embezzled by Anil Mithas and gather proof of financial misconduct.
The inquiry was initiated following several FIRs filed by the Uttar Pradesh Police and the Delhi Economic Offences Wing against UFHL, its promoters, and others under various sections of the Indian Penal Code.
The ED has claimed that UFHL amassed a staggering Rs 522.90 crore from homebuyers between 2012 and 2019 for a residential and commercial initiative named Aranya, situated in Sector-119, Noida.
Despite receiving such a massive influx of funds, the project failed to adhere to its construction timelines, resulting in widespread grievances from homebuyers to platforms like UP-RERA and local law enforcement, according to the release.
The situation intensified in 2018 when a financial creditor initiated insolvency proceedings against the company at the National Company Law Tribunal (NCLT), Delhi, a case that remains unresolved.
The ED reported that forensic evaluations by firms like Currie & Brown and BDO India LLP indicated that substantial amounts intended for construction were diverted to shell companies, affiliated entities, and defunct firms.
The funds were transferred through fraudulent transactions, including fake loans, inflated share premiums, and advance payments for non-existent materials. Numerous firms supposedly forfeited the funds under suspicious circumstances, severely hampering project development and leaving hundreds of homebuyers in financial turmoil.
According to the ED's statement, the investigation also revealed that multiple flats were deceitfully sold to more than one buyer, highlighting a more extensive network of criminal conspiracy and organized financial fraud.
Charges under IPC Sections 420 (cheating) and 120-B (criminal conspiracy) have been filed against the promoters.
