ED attaches builder Tekchandani’s properties worth Rs 113.5 cr in housing fraud case

The properties attached by ED under the provisions of Prevention of Money Laundering Act (PMLA), 2002, includes a villa at Aamby Valley, various residential and business premises in Mumbai, land parcels in Raigarh district and fixed deposits having aggregate value of Rs 113.5 crore, the agency stated on Thursday.

ED has already frozen or seized investments in shares, mutual funds, fixed deposits worth Rs 43 crore in this case.
The agency is probing a money laundering case against Tekchandani on the basis of Chembur police station’s FIR in Mumbai and Taloja police station’s FIR in Navi Mumbai.

Both FIRs were registered against Tekchandani and his family and associates in a housing fraud committed against prospective home buyers in connection with a project in Taloja, Navi Mumbai. The case in Chembur police station later got transferred to Mumbai Police’s (Economic Offences Wing) EOW. The said housing project is called Hex City/Clan City, which was being developed by Supreme Construction and Developer Pvt Ltd in Taloja.

In the FIR, it was alleged that Supreme Construction and Developer Pvt Ltd, is a company represented by Tekchandani and others.

The ED investigation revealed that M/s Supreme Construction and Developer Pvt Ltd collected huge funds of over Rs 400 crore from more than 1,700 home buyers in a housing project in Taloja, Navi Mumbai. Delays in the project left these home buyers in the lurch without flats or refunds.

“The preliminary PMLA investigation revealed that the funds received from the homebuyers were siphoned off by the builder for personal gains and creation of assets in various names, including family members,” the ED said.

The agency said that during its search operations, Rs 27.5 lakh cash and incriminating documents relating to the acquisition of huge properties under various names, including Tekchandani’s family members, were seized. Digital devices and other documentary evidence were also seized.

Details of FDs with face value of Rs 29.73 crore were also unearthed during the search. These FDs held in various banks have been frozen, the central agency said in a statement.

Teckchandani is facing at least seven criminal cases registered by the Mumbai Police. He was arrested in January this year by Mumbai Police’s EOW. ED arrested him on March 18 and presently he is in judicial custody.

The central agency’s investigation so far has revealed that Tekchandani alienated the properties of M/s Supreme Construction and Developers Pvt Ltd despite his exit from the ownership and directorship of the company with the assistance of other accused persons.

ED investigation has also revealed that accused persons were transferring the receivables of the company into the account of associate entity thereby siphoning off the funds, ED stated in a statement.