HYDERABAD: Enforcement Directorate Hyderabad zonal office conducted search operations on Thursday under Prevention of Money Laundering Act at two premises in Hyderabad linked to reality firms along with their promoters.
The searches at their premises led to the recovery of jewellery and bullion valued at 5.4 crore and unaccounted cash amounting to 72.7 lakh. The total seizure value was approximately 6.1 crore. Incriminating documents related to suspicious and unaccounted cash transactions, as well as property documents, were also seized.
ED‘s investigation stems from multiple FIRs filed by Telangana police against a reality firm promoter and others, based on complaints from investors and buyers. The reality firm and its promoters had allegedly collected significant amounts from buyers for residential projects but failed to deliver flats or refund money, defrauding investors of their savings.
The ED probe revealed that the firm lacked necessary statutory permissions and did not maintain an escrow account for the project. Instead, funds were deposited into various bank accounts and collected in cash.
It was found that the firm generated proceeds of crime amounting to 842 crore by taking advances from buyers under false pretenses. Of this, 216.9 crore was collected in cash, which was concealed and never recorded in the company’s books.
These funds were further siphoned off through bogus banking transactions and diverted to unrelated entities and individuals.
The probe also uncovered that companies linked to the two reality firm promoters were involved in high-value transactions exceeding 20 crore, which included property sales and purchases. Despite this, the promoters remained evasive, failed to respond to summonses, and did not provide required documents, hindering the investigation. Earlier, the ED had attached assets worth 161.5 crore in connection with case.
