Sushil Mantri, the director of Mantri Developers, shall be detained in judicial custody till September 12, 2022, after being apprehended by the Karnataka Crime Probe Department (CID) on Saturday, September 10, 2022, in connection with a money laundering investigation.
After reviewing an FIR filed with the Bengaluru Police in 2020, the Enforcement Directorate in March filed a case against Sushil Mantri Developers. The 2007 real estate slump and afterwards demonetization affected Sushil Mantri Developers.
Sushil Mantri was charged with fraud by the Enforcement Directorate in the amount of 300.4 crores for defrauding certain purchasers and failing to deliver units as promised. Sushil Mantri was detained by the Enforcement Directorate on June 25 in connection with a money laundering investigation.
The builder had a difficult time recovering from the financial setbacks. He owes more than Rs 1000 crore to many financial institutions, which have become NPAs, according to one of the insider sources.
Numerous homebuyers have reported Mantri Developers to the police and the ED, alleging that they are engaged in money laundering and have deceived potential buyers with rosy-coloured schemes, deceptive brochures, and fabricated delivery dates while also collecting more than Rs 1,000 crore in advance payments from thousands of buyers.
The ED had claimed that they were never handed control of their apartments, even after waiting for 7 to 10 years. Even after receiving explicit instructions from the Real Estate Regulatory Authority (RERA), the business still hasn’t in certain instances returned the money to the purchasers, it said.
Their inquiry revealed that the money received from customers by the firm, which was intended for the project’s development, had been diverted for the company’s management’s personal use or other illegal activities, which is why the projects had halted.
The speaker said that Undivided Share of Interest (UDS), according to the Department of Stamps and Duty, shall be included in the project title for flat registration, the speaker said.
He said, “However, Mantri Developers has not been registering UDS in Sale Deed thus denying purchasers’ rights on project property. Mantri was detained per section 19 of the Prevention of Money Laundering Act (PMLA) after being called in for an inquiry, according to the ED arrest letter.
