ED raids Vatika Limited in Delhi and Gurugram in money laundering case

The Enforcement Directorate (ED) has conducted search operations at 15 premises located in Delhi and Gurugram in the case of Vatika Limited and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.  

The raids were conducted on October 7 concerning a case wherein more than four hundred investors of various commercial projects did not receive assured returns as incorporated in the Builder Buyer Agents (BBAs), nor did the company hand over the commercial units to the buyers/investors.

During the search operations, various incriminating documents/records related to investments of the buyers, loans borrowed by the group companies from the financial institutions and digital devices such as pen drives, hard drives, laptops and mobile phones were seized.

ED initiated an investigation based on multiple FIRs registered during the year 2021 by the Economic Offences Wing, Delhi and Haryana Police under various sections of IPC, 1860, against M/s Vatika Limited and promoters Anil Bhalla, Gautam Bhalla and others related to offences of criminal conspiracy, cheating and dishonestly inducing delivery of property, etc.

The ED investigation revealed that the company M/s. Vatika Limited is involved in alluring the investors to make payments for future projects, against high-value returns like assured returns till completion and lease-rent returns after completion of projects.

However, mid-way, the company stopped paying the assured return and didn't hand over the respective units in various projects in Faridabad and Gurugram, thereby committing offences of criminal conspiracy, cheating and dishonestly inducing delivery of property, etc.

The ED probe also revealed that the Vatika Group of companies had availed loans of more than Rs 5,000 crore, of which nearly Rs 1,200 crore was waived off by the company IndiaBulls in a settlement with Vatika group and its promoters.

It was also revealed during the investigation that the company has not followed the due procedures such as non-renewal of the licences from DTCP from time to time, and lapses for completion of the said projects within the timeline.

As of now, the investigation findings reveal the involvement of nearly Rs 250 crore generated as proceeds of crime.

During the search operations, ED has also identified properties worth more than Rs 200 crore, related to the proceeds of crime.