ED seizes Rs 1.95 crore cash in searches linked to real estate developer in Nagpur
Nagpur, Oct 31 (TNT): The Directorate of Enforcement (ED), Nagpur, has seized unaccounted cash of Rs 1.95 crore and frozen bank balances exceeding Rs 40 lakh during searches conducted at two locations in Nagpur district in connection with an alleged real estate fraud involving Shashank Govindprasad Pandey, proprietor of M/s Prayag Developers and Builders.
The searches, conducted on October 26 under the Prevention of Money Laundering Act (PMLA), 2002, also led to the seizure of incriminating documents, records and digital devices, the Agency said in a release on Saturday.
The ED identified several immovable properties, collectively valued at crores of rupees, suspected to have been acquired with proceeds of crime.
The investigation was initiated based on FIRs registered at Ajni and Ranapratapnagar police stations in Nagpur City under Sections 418 and 420 of the Indian Penal Code, 1860.
According to the ED investigation, Pandey allegedly cheated several persons, including a senior citizen widow, in connection with real estate projects.
In one case, he entered into a development agreement with the woman, under which he was required to pay Rs 1.75 crore and allot 14 residential flats to her.
The ED alleged that the flats earmarked for the woman were fraudulently removed from her entitlement through cancellation of a Declaration-cum-Correction Deed without her knowledge or consent and subsequently sold to third parties.
The sale proceeds of Rs 8.93 crore were allegedly misappropriated for personal gain.
A further Rs 45 lakh payable under the agreement was withheld, resulting in a total wrongful loss of Rs 9.4 crore to the complainant.
In another case involving Divya Prayag Apartment, the investigation revealed that 22 flats had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of Rs 22 crore, of which Rs 11 crore was disbursed. Pandey allegedly sold the mortgaged flats without obtaining the lender’s no-objection certificate or disclosing the existing mortgage to the purchasers.
Subsequently, outstanding dues amounting to Rs 12.84 crore were reported and proceedings under SARFAESI Act were initiated.
The concealment and misrepresentation are suspected to have resulted in wrongful loss to the flat purchasers and corresponding wrongful gain to the accused.
Further investigation is under progress, the Agency added.
TNT KM
