In its money laundering investigation against the Supertech Group, the Enforcement Directorate (ED) has found that chairman Ram Kishor Arora named directors to specific companies that had no commercial activities and were instead used to divert funds taken from homebuyers and banks, as per the documents filed at a special court in Delhi on June 28.
Chairman RK Arora was recently arrested on June 27, and on the next day, he was presented at Delhi’s Patiala House Court. The documents presented by ED state, “Statements of directors of these companies were recorded wherein they categorically stated that there were no revenue earnings of these companies. They stated that they were made directors in these companies of Supertech Group by RK Arora including – Palash Building Solutions. The companies were not having any commercial activities and were created for the purpose of transaction activities linked with Supertech Group or for investment and rotation of funds either in Supertech or in other subsidiary companies of the group”.
ED alleged that Arora made all decisions about the transfer of funds in these shell companies. The submitted document states, “They (the directors) also stated that the decisions with regard to these transfers were ultimately taken by RK Arora and at his behest intra-group companies’ transactions are made”.
Following RK Arora’s arrest, he was presented before Delhi’s Patiala House Court’s judge, Additional Sessions Judge Devender Kumar Jangala, on June 28, who remanded Arora to ED custody till July 10. The investigative agency has sought custody of the accused, Arora, to ascertain the money trail and to unearth the entire conspiracy. ED also sought custody on the ground that the accused had to be confronted with various documents and digital evidence.
The Enforcement Directorate (ED), in its money laundering probe against the Supertech Group, has discovered that chairman Ram Kishor Arora named directors to certain companies which did not have any commercial activities and were instead used to divert funds taken from homebuyers and banks, the central probe agency has said in documents filed at a special court in Delhi.
ED further informed the court that around Rs 638.93 crore is involved in the proceed of the crime. This money was allegedly diverted into shell companies Sarv Realtors Private Limited, ASP Sarin, and Palash Building Solutions. The officials have stated that the agency is investigating whether any additional proceeds of crime are linked to Supertech and Arora.
The investigative agency told the court that they had seized a slew of incriminating documents and devices during their search at the premises of Supertech. The recovered evidence reveals that funds were siphoned off under the guise of several “sham agreements”, “deeds” and memorandums of understanding. In this syphoning of funds, it was found that Arora was “directly involved”.
ED also apprised the court that 26 FIRs have been registered in the matter. The FIRs were registered by Economic Offences Wing, Delhi Police; Haryana Police and UP Police against Supertech Limited and its group companies under Section 120B (criminal conspiracy) read with 406(criminal breach of trust)/420 (cheating)/467/471 IPC having allegations of cheating at least 670 home buyers for an amount of Rs.164 Crores.
ED also alleged that the amount collected by Supertech Ltd. was diverted to their group companies to purchase properties and the company with the land having much lesser value. ED alleged that the accused persons had acquired properties and made illegal/wrongful gain from the said proceeds of crime by involving, indulging and commissioning criminal activities related to scheduled offences.
Earlier in April, the ED provisionally attached 25 immovable properties, valued at Rs 40.39 crore, belonging to the Supertech Group of Companies and their Directors in Uttarakhand and Uttar Pradesh under the provisions of the Prevention of Money Laundering Act.
