ED attaches Rs 121.8 cr worth assets of Neomax Group in Rs 8,000 cr scam

In a significant enforcement action, the Directorate of Enforcement (ED) has temporarily seized movable and immovable assets valued at Rs 121.80 crore owned by Neomax Properties Private Limited and its affiliated companies under the Prevention of Money Laundering Act (PMLA), 2002. The properties included, situated throughout Tamil Nadu, are valued at approximately Rs 600 crore.

The most recent action, conducted on April 9, 2025, comes after a previous provisional asset attachment of Rs 117 crore on December 15, 2023. That asset, valued at Rs 207 crore, was subsequently validated by the Adjudicating Authority under PMLA.

The inquiry began after an initial information report (FIR) was filed by the Economic Offences Wing (EOW) in Madurai against Neomax Properties and its associated firms—Garlando Properties, Transco Properties, Tridas Properties, and Glowmax Properties—along with directors and shareholders Kamalakannan, Balasubramanian, Veerasakthi, Charles, and others.

As per the ED, the Neomax Group purportedly attracted numerous investors into real estate plot development projects by guaranteeing lucrative returns between 12 per cent and 30 per cent. The group gathered substantial amounts, mainly in cash, but did not provide the promised plots or the returns.

The funds were reportedly channeled to various shell companies and affiliated firms involved in different sectors, such as hospitality, healthcare, pharmaceuticals, retail, information technology, renewable energy, logistics, aerospace services, education, fashion, and e-commerce, according to a statement from the ED.

Investigators believe that the Neomax Group is in debt to investors for close to Rs 8,000 crore, which includes expected returns. Rather than settling these obligations, the group allegedly encouraged depositors to reinvest their matured funds.