New Delhi: The Enforcement Directorate (ED) has arrested promoter of M3M India group—one of the fastest growing real estate developers in the country—Basant Bansal in a money laundering case. The ED made the arrest after it hit up on the evidence about Bansal’s role in the alleged misappropriation of ₹400-crore by the M3M Group.
The ED is probing allegations of fund diversion, siphoning off, and misappropriation by the M3M India group and the IREO Group, with over Rs 400 crore involved in money laundering activities.
Also Read: IT raids on Vianaar & Isprava groups yield huge unaccounted cash
Basant Bansal had earlier obtained interim protection from arrest until July 5 from the Delhi High Court, along with Pankaj Bansal. The court had noted that if arrested, Basant Bansal would be granted bail under specific conditions and upon providing a personal bond of ₹10 lakhs. These orders were issued in response to separate anticipatory bail applications filed by Basant Bansal and Pankaj Bansal in relation to the ongoing ED investigation.
According to the ED, the owners, controllers, and promoters of M3M India group — Basant Bansal, Roop Kumar Bansal, Pankaj Bansal — and other key individuals deliberately avoided investigations. The ED has been investigating IREO Group based on multiple FIRs filed against them for diverting and misappropriating funds of investors and customers.
Also Read: Noida seals flats, project office of 3 builders for dues non-payment
“The ED’s investigations revealed that a significant amount of money, running into hundreds of crores, was siphoned off through M3M Group as well. In one transaction, M3M group received approximately ₹400 crore from IREO Group through several shell companies in multiple layers. These transactions were shown in IREO’s books as payments towards development rights,” stated the ED.
The ED further mentioned that the land was owned by M3M Group, with a market value of around ₹4 crore. Initially, M3M Group sold the development rights of the land to five shell companies for a payment of ₹10 crore.
Also Read: RERA cracks whip on Agrani Homes, complainants to get refund for flat advance
“It was claimed that these five companies were unrelated entities. However, investigations revealed that the five shell companies were operated by M3M Group. Subsequently, these companies immediately sold the development rights of the same land to IREO Group for approximately Rs 400 Crore. Once the amount of Rs 400 crore was received from IREO Group, the five shell companies transferred the funds to M3M Group through multiple shell companies and layers,” explained the ED.
The ED also stated that all the shell companies were owned and operated by M3M Group under the directions of its promoters, Basant Bansal, Roop Kumar Bansal, and their family members.
Also Read: Central panel looks for ways to resolve legacy halted home projects
“In this manner, IREO and M3M siphoned off approximately Rs 400 crore, which belonged to investors and customers. The proceeds of this crime remained with M3M India, which was used for other investments and to pay off liabilities. On the other hand, IREO Group made no efforts to develop the land and started to write off the investments every year,” the official said.
“Bansal played a key role in the completion of the said transactions. His custody had become necessary for investigations. He had been avoiding investigation and was not responding to summons issued by the ED on multiple occasions,” said the ED.
M3M India is one of the fastest growing real-estate developer in the country with speed, class, luxury and innovation being at the core of its vision. M3M India’s vision is to be the biggest and most respected real-estate brand in India by delivering sustainable and customer centric projects. The group has launched a slew of iconic projects, designed and developed by world-class partners.
