Bengaluru unit of ED arrests builder for Rs 500 crore fraud

The Bengaluru unit of the Enforcement Directorate (ED) Thursday arrested jailed builder Mahesh B Ojha, the head of Karan Group Builders and Developers, under the provisions of Prevention of Money Laundering Act (PMLA) in an alleged fraud and cheating case involving an amount of more than Rs 500 crore. A special PMLA court granted 10-day ED custody of Ojha.

According to the ED, the case is related to multiple FIRs for fraud and cheating in the name of investments in real estate projects registered by the Karnataka Police. An investigation revealed that the complainant had invested a total of Rs 526 crore in different real estate projects undertaken by various groups and individuals. Subsequently, the amount was siphoned off by showing that it was paid to various persons and used for commission in lieu of bank entries. The investigators also learnt that most of the amount invested by the complainant was in cash.

The probe also revealed that out of the total investment of Rs 526 crore by the complainant, the bulk of the investment of Rs 121.5 crore was made for a real estate project undertaken by Karan Group Builders and Developers, headed by Ojha. This amount received for the real estate project was rotated through various entities and subsequently diverted by Ojha through another network of entities and people.

Ojha was earlier arrested by the Criminal Investigation Department (CID), Bengaluru, and is presently in judicial custody. Further investigation is in progress.