A Delhi court on Monday remanded Supertech Group Chairman R.K. Arora to 14-day judicial custody in connection with a money laundering case under the Prevention of Money Laundering Act (PMLA) being probed by the Enforcement Directorate (ED).
Arora was produced before the Rouse Avenue Court Complex on Monday on expiry of his ED custody. The probe agency had arrested Arora on June 27 after it recently attached properties worth Rs 40 crore belonging to Arora in this matter.
Sources had said that Arora was called to join the probe.
“He had been coming to the ED headquarters for three consecutive days. On Tuesday (June 27), we finally placed him under arrest,” an ED source had said.
Appearing for the federal agency, special public prosecutor N.K. Matta had apprised the court that the company and its directors had indulged in a criminal conspiracy to cheat people by collecting funds from prospective home buyers as advance against flats booked in real-estate projects.
Matta had said the firm failed to adhere to the agreed obligation of providing possession of the flats on time and ended up defrauding the general public.
The money laundering case stems from a bunch of FIRs registered by the police in Delhi, Haryana and Uttar Pradesh.
The sources said that money collected through real-estate business was invested in several firms through money laundering.It has been alleged that money was collected from the home buyers and later transferred to several accounts of firms involved in other businesses.
“This way, the home buyers were cheated,” the source had said.
Arora couldn’t provide satisfactory answers, leading to his arrest.
About a month ago, the Dadri administration in Greater Noida had issued a notice against Arora and Supertech, asking them to repay a total of Rs 37 crore. After the notice was served, Arora was detained at the local DM office, but was released later.
According to sources, several FIRs have been filed against Arora and Supertech. They also took loans from banks, and their accounts reportedly turned into non-performing assets (NPAs).
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