Amrapali Group’s Chief Financial Officer and Statutory Auditor were arrested Monday evening by the Economic Offences Wing of Delhi Police for alleged fraud. The arrest of the accused, Prakash Wadhwa and Anil Mittal, comes days after the Supreme Court cancelled Amrapali’s registration for defaulting on delivery of thousands of homes.
“An FIR was filed in 2017 under IPC sections 406 (punishment for breach of trust), 409 (breach of trust), 420 (cheating) and 120 (B) (conspiracy) against the group. The accused were instrumental in creating a large number of bogus companies for the purpose of diversion of funds of homebuyers by employing their known persons or relatives at key management posts in companies. Further investigation is pending,” the EOW said in a statement.
The FIR, filed on the basis of a homebuyer’s complaint, alleged that the company “looted hard-earned money” and delayed possession of the flat even after six years. The company, for about 1-2 years, made “false and incorrect promises” with regards to the flat delivery, the FIR said.
According to EOW officials, the investigation is looking at three aspects given the extent of the alleged fraud.
“We are looking at several cases, which involves investigating each Amrapali housing project. Since there are many projects as well, we are looking into regulatory lapses, diversion of funds and contracts. The roles of other senior officials and members of staff in terms of alleged lapses is also under the scope of the investigation,” said Suvashis Choudhary, Additional CP (EOW).
The EOW is looking into the permissions sought by the company and the lapses which allegedly led to the delay along with the trail of funds allegedly diverted. Several hundred homebuyers registered complaints with the EOW while investigation is pending in most of them.
According to police sources, the Supreme Court had highlighted the specific role of Wadhwa and Mittal in the alleged siphoning of funds to other projects which led to the delay. The role of other stakeholders, apart from the company, is also a part of the investigation, police officers said.
A team of 2 DCPs, 3 ACPs and several IOs are currently monitoring cases related to Amrapali. The director Anil Sharma and two senior officials are currently lodged in judicial custody.
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