ED attaches Rs 44 crore assets of Mumbai builder in Rs 400 crore fraud probe

The Mumbai Zonal Office of the Directorate of Enforcement (ED) has temporarily attached assets, both movable and immovable, associated with builder Lalit Tekchandani and his associates under the Prevention of Money Laundering Act (PMLA), 2002, related to a case involving fraudulent activities against potential flat purchasers.

The assets comprise a villa in Dubai, different residential and commercial properties in Mumbai, land in Pune, and fixed deposits totaling Rs 44.07 crore. The ED has previously frozen/seized investments in shares, mutual funds, and fixed deposits amounting to Rs 158 crore in this matter.

The inquiry began due to two FIRs filed by the Taloja and Chembur Police Stations under different sections of the IPC, 1860. The FIRs claim that M/s Supreme Construction & Developer Pvt Ltd, led by Tekchandani and others, raised substantial amounts from potential homebuyers for a housing project in Taloja, Navi Mumbai.

The ED’s inquiry uncovered that the firm collected over Rs 400 crore from over 1,700 homebuyers for the initiative, which was subsequently postponed, resulting in buyers not receiving their apartments or refunds.

In the investigation conducted under the PMLA, 2002, the ED apprehended Lalit Tekchandani on March 18, 2024. He is presently in judicial detention. His questioning uncovered that money obtained from homebuyers was cleaned for personal benefit and utilized to build assets under different names, including relatives’.

The inquiry also uncovered that even after leaving the ownership and directorship of M/s Supreme Construction & Developers Pvt Ltd, Tekchandani, with help from other accused individuals, persisted in transferring the company’s assets. Furthermore, the defendants were discovered to have embezzled money by diverting the company’s receivables into the accounts of an affiliated entity.