Yogi Adityanath Orders FIR Against Ansal Group Amidst Massive Real Estate Scam
In a major crackdown on fraudulent real estate dealings, Uttar Pradesh Chief Minister Yogi Adityanath has ordered the immediate registration of an FIR against Ansal Group, one of the state’s most controversial builders, for allegedly defrauding homebuyers. This comes in the wake of the National Company Law Appellate Tribunal (NCLAT) initiating insolvency proceedings against the company, triggering panic among thousands of investors.
The Fraud: How Homebuyers Were Duped
Ansal Group, once a prominent name in real estate, allegedly engaged in deceptive practices that left homebuyers in financial turmoil. The group is accused of launching multiple residential projects, collecting advance payments from buyers, and then stalling construction indefinitely. Reports suggest that despite receiving full or partial payments from thousands of buyers, the company failed to deliver possession, citing false project delays and mismanagement of funds.
Many homebuyers have claimed that even after years of waiting, they were either left with incomplete structures or found that their properties had been resold to multiple parties. Additionally, allegations have surfaced that Ansal Group, in collusion with officials, bypassed necessary regulatory approvals and violated zoning laws, further worsening the buyers’ predicament.
Legal Action & Criminal Charges
The FIR, registered at the Gomti Nagar police station in Lucknow, names key individuals associated with Ansal Properties and Infrastructure Limited (APIL). The accused include Promoters Pranav Ansal, Sushil Ansal, Sunil Kumar Gupta, Francette Patricia Atkinson, and Director Vinay Kumar Singh. They have been booked under multiple sections of the Bharatiya Nyaya Sanhita (BNS), including:
- Section 316(5) – Criminal breach of trust
- Section 318(4) – Cheating
- Section 338 – Forgery of valuable security, will, etc.
- Section 336(3) – Forgery for cheating
- Section 340(2) – Using forged documents as genuine
- Section 61(2) – Criminal conspiracy
- Section 352 – Intentional insult with intent to provoke breach of peace
- Section 351(2) – Criminal intimidation
- Section 111 – Organised crime
These charges highlight the severity of the case and the scale of the fraudulent activities committed by the company.
Yogi Adityanath’s Stern Warning
Chairing a high-level review meeting of the Housing and Urban Planning Department, CM Adityanath issued a strong warning, stating that no builder will be allowed to exploit the hard-earned money of the common people.
“Our government will track down such individuals even from the depths of hell. If anyone thinks they can take money from the poor and flee, we will bring them back and ensure that they are punished,” he declared during a heated discussion in the state assembly.
He further emphasized, “Uttar Pradesh will not tolerate fraudulent builders. I have ordered swift action against those who deceive homebuyers. The days of unchecked corruption in the real estate sector are over.”
NCLT Orders Insolvency Proceedings
Adding to the turmoil, the National Company Law Tribunal (NCLT) admitted Ansal Properties and Infrastructure Limited (APIL) into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016, as of February 25. This decision follows a petition by IL&FS Financial Services Limited (IL&FS) regarding a loan default amounting to Rs 257 crore.
IL&FS, the financial creditor, alleged that the listed entity Ansal API failed to repay loans totaling Rs 257 crore. While the company had reached a settlement agreement in 2022, it failed to adhere to its terms. The CM took strong cognizance of this insolvency case and directed officials to take strict action against those responsible.
State Government’s Countermove
In an unexpected move, the NCLAT initiated insolvency proceedings against Ansal Group without consulting the Lucknow Development Authority (LDA) or the Housing Department. Expressing dissatisfaction, Yogi Adityanath has now ordered state authorities to file an appeal against the tribunal’s decision, arguing that it could jeopardize the interests of homebuyers awaiting justice.
“The state government will fight this case in every legal forum. We will not allow fraudsters to escape under the guise of insolvency laws,” Adityanath asserted.
Furthermore, the CM instructed authorities to file FIRs in every district where similar complaints against the company exist, ensuring a widespread probe. A special committee comprising representatives from LDA and affected buyers has been formed to present strong evidence in court, paving the way for strict legal action.
Urban Development Reforms & Crackdown on Corrupt Builders
The CM also took the opportunity to emphasize broader reforms in urban planning. He reviewed key infrastructure projects, including metro expansions in Kanpur, Lucknow, and Agra, and called for strict measures to prevent similar frauds in the future.
“Our vision is to make real estate in Uttar Pradesh the most transparent and investment-friendly sector in the country. Every homebuyer should feel secure about their investment,” Adityanath stated.
With the establishment of 100 new townships, digitization of property transactions, and stricter oversight on real estate firms, Adityanath’s administration aims to ensure accountability and transparency in the housing sector.
What Lies Ahead?
With the government’s aggressive stance against corrupt real estate practices, the crackdown on Ansal Group marks a crucial turning point in safeguarding homebuyers' rights. As investigations unfold, the focus will remain on recovering lost investments and holding the perpetrators accountable.
Stay tuned with The Realty Today for further updates on this developing story.
Image source: madhyamam
