by THO
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The Enforcement Directorate (ED) has arrested Ashish Bhalla, promoter of WTC Group, days after multi-state raids in connection with an alleged real estate fraud, people familiar with the development said on Friday.
The agency claimed that the WTC Group collected more than ₹3,000 crores from various investors across several states such as Haryana, Uttar Pradesh, Chandigarh, Ahmadabad, Punjab, etc., for 15 projects in Delhi NCR, but probe revealed that very few were delivered.
“ED’s Gurugram office has arrested Ashish Bhalla, promoter WTC Group under the provisions of Prevention of Money Laundering Act (PMLA) in the case of real estate fraud involving cheating and duping thousands of investors of their monies through well planned conspiracy. During investigations it was revealed that after promising assured returns in exchange for their investment against plot or commercial space, the funds were diverted and siphoned off to several shell companies to acquire lands at various locations,” a senior agency official said.
“Investigations have also revealed that hundreds of crores were also diverted abroad to suspicious entities in Singapore whose beneficial ownership is with family members of Ashish Bhalla. Further investigation has revealed that WTC group had collected more than ₹3,000 crores from various investors across several states such as Haryana, UP, Chandigarh, Ahmadabad, Punjab, etc,” the officer added.
On February 27, ED teams carried out raids at 12 locations including in Delhi, Faridabad and other places in the NCR.
“During raids, Ashish Bhalla remained absconding and induced key persons against cooperating with investigation. He remained absconding for several days in an attempt to frustrate proceedings under PMLA. It was revealed that he is a key beneficiary and mastermind of the fraudulent activities of the group and has made unlawful gains through the scheme,” said a second ED official.
He was arrested on Thursday and was produced before a court in Gurugram, which remanded him to ED custody for six days.
ED probe in the matter is based on dozens of FIRs registered by the Economic Offences Wing (EOW) of Delhi and Faridabad police on the basis of complaints from hundreds of homebuyers and investors against WTC Group and its promoters – Ashish Bhalla, Suparna Bhalla, Abhijeet Bhalla, Bhutani Infra and others for cheating, criminal breach of trust and fraud against hundreds of homebuyers by the accused companies/persons.
The FIRs allege that WTC Faridabad Infrastructure Private Limited and its promoter lured people or plot buyers to invest in their project at Sector 111-114 in Faridabad for residential plots.
“Promoters/directors hatched a criminal conspiracy and siphoned off the hard-earned money of the plot buyers by not completing the project within the stipulated time and non-delivery of the plots to the plot buyers for more than 10 years. It was also alleged in FIRs that Bhutani Infra group has acquired the WTC group and has re-launched the project at Sector 111-114 Faridabad keeping the plot buyers in disarray and committing fraud with investors and luring them to surrender units,” the ED said in a statement on March 3.
It has said that documents related to funds collection of more than ₹3,500 crore from various investors was found against 15 projects in Delhi/NCR Region.
“Out of the 15 major projects being undertaken by the group very few deliveries have been given indicating a well-orchestrated Ponzi scheme and creation of assets in the name of other entities and siphoning the funds abroad. Further, it was also unearthed during search action that more than ₹200 crore has been siphoned to Singapore and USA indicating investments overseas for acquiring of overseas assets,” it added.
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