R.K. Arora has been arrested by the Enforcement Directorate(ED) in a money laundering case.
R.K. Arora was summoned three days ago and was being questioned by the ED for the past three days. After being questioned on Tuesday he was detained by the agency.
On April 11 properties worth Rs 40.39 crore were attached to Supertech and its director’s belongings. It included a mall in Meerut of Uttar Pradesh and 25 unbudgeable assets in Uttarakhand. The action was taken by the ED after several FIRs were registered against RK Arora in Delhi, Haryana and UP.
“It was alleged that the company and its Directors indulged in criminal conspiracy to cheat people by collecting funds from prospective buyers as advance against booked flats… and failed to adhere to agreed obligations to provide possession of flats on time and as per FIRs, company defrauded the public,” an ED spokesperson had said.
Investigation outcome
The investigation by the ED was led under the Prevention of Money Laundering Act(PMLA). The investigation divulged that company cumulated advances from home buyers and took the loan from banks for the construction of these flats. The money involved was never used for the construction of these flats and was diverted to purchase land for the other company’s of the group. Further investigation divulges that the realty company defaulted on their loans to financial companies and loans of Rs1,500 crore have turned out to be Non-Performing Asset.
“Investigation revealed that funds were collected by Supertech Ltd and group companies from homebuyers and (they) took project specific term loans from banks/financial institutions for…projects/ flats. However, these funds were misappropriated and diverted for purchase of land in name of other group companies that were again pledged as collateral to borrow funds…,” the spokesperson had said.
