Following multiple FIRs filed against him under the Prevention of Money Laundering Act (PMLA) at various police stations in Delhi, Haryana, and Uttar Pradesh, the Enforcement Directorate (ED) initiated an investigation against RK Arora. On Tuesday, the ED apprehended the chairperson of Supertech, a renowned real estate developer, from his office in Delhi. Despite being summoned by the central agency for the past three days, Arora’s arrest took place in the late evening. The arrest was made in connection with a money laundering case, as reported by Live Hindustan, a sister website of Hindustan Times. The ED officials notified Arora’s family members about the real estate tycoon’s detention. It is worth mentioning that Arora also holds the position of chairperson in the National Real Estate Development Council (NAREDCO), an organization comprising builders.
FIRs in Delhi, Haryana and UP
The Enforcement Directorate (ED) launched an investigation into Supertech Group of Companies and other entities under the Prevention of Money Laundering Act (PMLA) based on registered FIRs in Uttar Pradesh (UP), Delhi, and Haryana. The FIRs accused the company and its directors of fraudulent practices, specifically cheating home buyers by collecting funds from them. Additionally, the FIRs alleged that Supertech failed to deliver the promised flats to the buyers.
‘Diverted home buyers’ money’
During the investigations, it was discovered that the Supertech Group of Companies received funds from home buyers and secured loans from banks for the construction of flats. However, it was alleged that these funds were misappropriated and diverted towards the purchase of land. Subsequently, the acquired land was mortgaged to repay the loans obtained from the banks. The Enforcement Directorate (ED) stated in its probe that the Supertech Group also defaulted on its payments to banks and financial institutions, resulting in loans amounting to ₹1,500 crore being classified as non-performing assets (NPAs).
Past activity
On April 12, the Enforcement Directorate (ED) took action by attaching properties valued at ₹40 crore that belonged to Supertech Group and its directors. The attachment encompassed 25 immovable assets located in Uttarakhand, as well as the Meerut Mall situated in Meerut, Uttar Pradesh.