New Delhi, Sept. 17 -- The Enforcement Directorate on Thursday searched three premises in Gurugram linked to former Haryana minister Gopal Kanda in connection with an alleged real estate fraud case involving Vatika Limited.
The searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA) as part of an investigation into the alleged diversion of funds collected from investors in four commercial real estate projects.
According to the ED, investors were allegedly induced to put money into the projects on assurances of possession of properties, returns on investment and rental income, besides execution of sale deeds.
The agency said the four projects under investigation involved collection of around Rs 248.46 crore from 661 investors. Despite the collection, possession of the properties was allegedly not handed over and sale deeds were not executed, it said.
The ED said its investigation into the financial trail raised suspicion that funds belonging to home buyers had been diverted, with the money allegedly transferred to various companies linked to Kanda.
The three premises searched on Thursday included Kanda's residence, farmhouse and office in Gurugram.
The searches were aimed at examining financial transactions and tracing the movement and utilisation of funds collected from investors, the agency said.
The ED is continuing its investigation into the alleged financial transactions and fund flow in the case.
Published by HT Digital Content Services with permission from Millennium Post.