The Enforcement Directorate (ED) on Friday conducted raids at 10 locations in Bengaluru and Mumbai in connection with a major money laundering case involving a prominent real estate developer. The action was carried out by the Bengaluru Zonal Office of the ED under Section 17 of the Prevention of Money Laundering Act (PMLA).
According to officials, the raids targeted properties and offices associated with the builder group and its key management personnel. The company is accused of defrauding homebuyers in an integrated township project located in Devanahalli Taluk, Bengaluru.
“The project was scheduled for completion in 2018, but only 49 percent has been completed as of 2024,” officials said. The company has neither handed over the units nor refunded the buyers’ money, prompting widespread complaints. The ED alleges that the company lured customers with false promises, including paying EMIs on behalf of buyers until the project’s completion and offering steep discounts for upfront payments. Buyers were also promised schemes such as “buyback offers” and “2X returns,” which never materialized.
The builder and its directors are accused of cheating hundreds of buyers, collectively misappropriating funds worth hundreds of crores. Several First Information Reports (FIRs) have been filed against the company and its promoters, leading to the ongoing investigation under PMLA. Searches were ongoing at the time of reporting, as ED officials continue to gather documents and evidence related to the alleged financial fraud. The case has raised significant concerns among affected buyers and authorities alike.