Unitech scam deepens: ED files SPC, traces global money trail and benami assets

New Delhi: The Directorate of Enforcement (ED) has filed a second Supplementary Prosecution Complaint (SPC) before the Special Court (PMLA), in the ongoing investigation against Unitech Limited and its promoters.

The ED said that the complaint has named Ramesh Chandra and several others, including companies such as M/s Shivalik Ventures Pvt. Ltd., M/s Auram Asset Management Pvt. Ltd., M/s Unitech Build Tech Ltd., M/s Unitech Golf Resorts Ltd., and M/s Ranchero Services Ltd., under the Prevention of Money Laundering Act (PMLA), 2002.

The case, rooted in FIRs registered by the CBI and Delhi Police under the IPC and the Prevention of Corruption Act, 1988, pertains to massive ‘financial irregularities’ by Unitech Limited and its directors, including Ramesh Chandra, Sanjay Chandra, Ajay Chandra, and Preeti Chandra, said the ED. Over 29,800 homebuyers invested their life savings into Unitech’s housing projects, which ultimately turned into a massive fraud, the ED added.

Despite collecting Rs 16,075.89 crore from homebuyers and financial institutions, Unitech is accused of diverting Rs 7,794.35 crore for non-sanctioned purposes.

The ED’s investigation reveals a systematic and well-planned laundering operation executed using five major modus operandi:

Inflated share purchases: Funds were diverted by acquiring shares of select companies at prices grossly inflated above market value. These transactions funnelled money to entities like Carnoustie Management Pvt. Ltd. and the Shivalik Group, both linked to the Chandra family, the ED informed.

Venture Capital Fund misuse: Unitech allegedly misused funds from venture capital sources, including CIG Realty Fund I, II, and IV, which were meant for genuine real estate development. Instead, the funds were siphoned off for the personal benefit of the promoters.

Overseas fund layering: A complex cross-border laundering network was uncovered, involving the transfer of funds to the UAE and subsequent rerouting through the Cayman Islands and Singapore, the ED said, adding, the Chandras created and operated the Trikar Group of companies to conceal the illicit origin of the funds using shell entities and benami accounts.

Asset purchases in foreign names: The proceeds of crime were moved outside India and used to acquire immovable assets in the names of family members and benami entities, the ED said. For instance, Preeti Chandra is reported to have purchased three luxury flats in Dubai using diverted funds, added the ED.

Diversion via group entities: The ED has established a detailed flow of funds showing how money collected from homebuyers and banks was funnelled through various group companies and shell firms, enabling its diversion away from intended housing development activities.

As of now, the ED has identified and attached proceeds of crime worth Rs 1,621.91 crore through 21 Provisional Attachment Orders, covering 1,291 properties. All these attachments have been confirmed by the Adjudicating Authority.

With the latest filing, the total number of accused, comprising individuals and entities, stands at 105 across one original and two supplementary prosecution complaints filed in the case.

–IANS

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