ED Seizes ₹1.95 Crore Cash in Nagpur Builder Property Fraud Probe, Freezes Bank Balances Worth ₹40 Lakh
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Summarized by AI; it may make mistakes. Check important info
The Enforcement Directorate (ED) has seized unaccounted cash worth ₹1.95 crore and frozen bank balances exceeding ₹40 lakh during raids on two locations linked to Nagpur-based builder Shashank Govind Prasad Pandey in an alleged property fraud case.
The searches were conducted on October 26 under the Prevention of Money Laundering Act (PMLA) at premises linked to Pandey, proprietor of Prayag Developers & Builders, the ED said in a statement on Saturday.
The agency also recovered incriminating documents, records and digital devices. Investigators identified several immovable properties worth crores of rupees that are suspected to have been acquired using proceeds of crime.
Investigation Follows Fraud Complaints
The ED initiated its investigation based on FIRs registered at Ajni and Ranapratapnagar police stations in Nagpur under Sections 418 and 420 of the Indian Penal Code, 1860.
According to the agency, its investigation has revealed a series of alleged fraudulent activities that caused financial losses to several people.
In one case, Pandey entered into a development agreement involving land owned by a senior citizen widow. Under the agreement, he was required to pay her ₹1.75 crore and allot 14 residential flats.
The flats had been earmarked for her through a Declaration-cum-Correction Deed. However, the ED alleged that Pandey cancelled the deed without her knowledge or consent and subsequently sold the earmarked flats to third parties.
The agency said the sale proceeds of ₹8.93 crore were allegedly misappropriated for personal gain. Pandey also allegedly withheld ₹45 lakh payable under the development agreement, taking the complainant's total reported loss to ₹9.4 crore.
22 Mortgaged Flats Sold Without Disclosure
The ED also investigated alleged irregularities involving Divya Prayag Apartment, where 22 flats had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of ₹22 crore. Of this amount, ₹11 crore was disbursed.
According to the agency, Pandey sold the mortgaged flats without obtaining a no-objection certificate from the lender or informing buyers about the existing mortgage.
He also allegedly submitted a false affidavit to a bank while applying for a home loan, concealing the mortgage, the ED said.
The agency reported outstanding dues of ₹12.84 crore, following which proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act were initiated.
The ED suspects that the alleged concealment and misrepresentation caused financial losses to flat buyers while generating wrongful gains for the accused.
The investigation is ongoing, and further details are awaited.
