ED seizes shares, mutual funds worth Rs 13 crore of builder Lalit Tekchandani

The agency is probing a money laundering case against Tekchandani under provisions of the Prevention of Money Laundering Act (PMLA), 2002.

ED has registered a PMLA 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 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. 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 searches, 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 last month by Mumbai Police’s Economic Offences Wing (EOW).