ED Arrests Promoter of Noida-Based Real Estate Firm in ₹107 Crore Fraud Case

The Enforcement Directorate (ED) has arrested Anil Mithas, the main promoter of Unnati Group, in connection with an ongoing investigation into the diversion of funds collected from home buyers. He has been remanded to ED custody until April 24 by a special court under the Prevention of Money Laundering Act (PMLA) in Ghaziabad, Uttar Pradesh.

The arrest was dine due to multiple FIRs registered by a Special Investigation Team (SIT) constituted by the Uttar Pradesh government. The FIRs accuse Unnati Fortune Holdings Limited and its promoters of engaging in financial misconduct involving ₹107 crore. The ED’s action follows a detailed probe into the company's financial dealings between 2012 and 2019.

According to the ED, Unnati Fortune Holdings Limited, in partnership with IVRCL Infrastructure and Projects Limited, had collected ₹522.9 crore from home buyers for a residential project named ARANYA, located in Sector 119, Noida. However, the funds were not fully utilised for the intended purpose of construction. The investigation revealed that a portion of the amount was used for the project, while the remainder was diverted through various channels.

The agency stated that the funds were siphoned off by the promoters using mechanisms such as fake loans, advances, inflated share premiums, and non-genuine payments for materials and deposits. These financial movements were routed through other group companies or entities linked to the promoters, which lacked any justifiable business rationale.

Due to the financial irregularities, the ARANYA project stalled, leaving hundreds of home buyers in a difficult position. The project faced funding shortages, resulting in incomplete construction and unmet commitments to buyers who had invested in good faith.

An audit report commissioned by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) corroborated the ED’s findings. The report highlighted the diversion of ₹107 crore, pointing to a pattern of financial mismanagement and violations of buyer agreements.

In addition to financial diversion, further police complaints revealed that some units in the project were sold to multiple buyers, raising allegations of property misrepresentation and fraud. This practice has compounded the distress faced by affected families, many of whom are still awaiting possession of their homes.

The ED noted that the actions of the promoters resulted in a serious breach of trust. The failure to deliver on contractual obligations not only affected the financial standing of individual buyers but also undermined confidence in the larger real estate sector.

The agency has termed the diverted funds as proceeds of crime under the PMLA, stating that the accused benefitted from illegal financial gains while disregarding their obligations to buyers and regulatory norms.

This case is among several that have come to light in recent years, where funds collected for residential projects were misappropriated or diverted. Regulatory bodies and enforcement agencies have increasingly focused on such violations to ensure accountability within the real estate sector.

The ED is expected to continue its investigation to trace further fund movements and identify other individuals or entities that may have played a role in the diversion of funds. Efforts are also underway to recover assets and secure justice for affected buyers.

The matter will be further reviewed during Mithas’s next court appearance, scheduled for April 24. Meanwhile, authorities have reiterated the need for stricter compliance and transparency within the housing sector to prevent similar incidents in the future.