New Delhi: Supertech Group chairman RK Arora has been sent to 14-day judicial custody in connection with a money laundering case under the Prevention of Money Laundering Act (PMLA), being investigated by the Enforcement Directorate (ED).
The Rouse Avenue Court Complex has sent Arora in judicial custody on expiry of his ED custody, which ended today. The probe agency had arrested Arora on June 27 after it recently attached properties worth ₹40 crore belonging to Arora in this matter.
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It is learnt 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 ED, special public prosecutor NK Matta had apprised the court that the Supertech and its directors had indulged in a criminal conspiracy to cheat people by collecting money 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.
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The ED officials claimed 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.
The ED officials said that Arora had to be sent to the judicial custody after he failed to provide satisfactory reply to their queries.
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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 ₹37 crore. After the notice was served, Arora was detained at the local DM office, but was released later.
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).
