ED Uncovers Over Rs 200 Crore in Assets During Raids at 15 Locations in Delhi and Gurugram in Money Laundering Probe
The Enforcement Directorate (ED) has identified assets worth over Rs 200 crore in connection with raids at 15 locations across Delhi and Gurugram, as part of an ongoing money laundering investigation into Vatika Limited. The raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA) and they targeted properties linked to the real estate developer and its promoters.
The investigation relates to complaints from more than 400 investors, who claim they were not provided with the returns or the commercial properties promised in their Builder Buyer Agreements (BBAs).
The ED launched the raids on October 7, revealing that investors had been misled into investing in future commercial projects with assurances of high returns until the project’s completion.
These agreements also promised lease-rent returns once the projects were operational. However, midway through, Vatika Limited allegedly stopped paying the assured returns and failed to hand over the promised units in projects located in Faridabad and Gurugram. This led to allegations of criminal conspiracy, cheating and dishonestly inducing the delivery of property.
During the operation, investigators seized various incriminating documents, financial records and digital devices such as hard drives, pen drives, laptops and mobile phones, all containing critical information related to the case.
The ED’s probe has also uncovered that the Vatika Group had secured loans worth more than Rs 5,000 crore, of which approximately Rs 1,200 crore was waived as part of a settlement agreement with Indiabulls, raising further questions about financial irregularities within the company.
The agency further revealed that the group failed to follow due regulatory procedures, including non-renewal of necessary licenses from the Department of Town and Country Planning (DTCP) and delays in completing projects on time.
Additionally, the investigation has uncovered approximately Rs 250 crore generated as Proceeds of Crime. The ED's findings are likely to have far-reaching consequences for Vatika Limited and its promoters as the investigation progresses.
