Orbit CEO arrested: Cops probe money trail in cheating case

Aggarwal has claimed that the amount received from the sale of apartments to Capri Global was reinvested in finishing the same project.

By: Express News Service | Mumbai | Published:September 10, 2016 4:17 am

A day after the Mumbai Police arrested construction magnate Pujit Aggarwal for his involvement in an alleged case of cheating, investigators Friday confirmed they have initiated a probe on the money trail. Aggarwal, 44, the CEO and the managing director of the construction firm Orbit Construction Limited, is accused of selling three apartments in his half-complete Orbit Residency Park in Saki Naka to Capri Global Capital Limited for Rs 2.53 crore.

Investigators said he ought to have deposited this amount in an escrow account of the LIC Housing Finance Limited (LIC HFL) as he had defaulted on a loan of Rs 200 crore to complete the project, but failed to do so.

According to the police complaint, Aggarwal had not disclosed the arrangement the firm had with LIC HFL to the individuals who invested in homes in the project. LIC HFL subsequently took symbolic possession of the building, leaving the investors in a limbo.

Following his arrest on Thursday, Aggarwal has claimed that the amount received from the sale of apartments to Capri Global has been reinvested for finishing the construction of the same project.

Investigators, however, are yet to buy his claim. “We have asked him to produce documents to support his claim,” said a senior police official privy to the case. The police will also look into Aggarwal’s bank transactions to probe how he utilised the money received from Capri Global.

Meanwhile, the police are undecided about arresting Aggarwal’s ailing father Ravi Aggarwal (75), who has also been named in the FIR. “Ravi Aggarwal has only been booked as he one of the firm’s promoters. He does not have an active role in the firm’s day-to-day functioning. Considering his advanced age and the fact that he is suffering from several diseases, we are seeking an opinion on whether to arrest him or not,” the officer said.

 

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