ED arrests director of Bengaluru-based real estate group on money laundering charges


PTI, Jun 25, 2022, 8:40 PM IST

The ED on Saturday said it has arrested Sushil P Mantri, director of Bengaluru-based real estate group Mantri Developers Pvt. Ltd., in a money laundering probe linked to alleged duping of numerous homebuyers.

Mantri was produced before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru that sent him to the Enforcement Directorate custody for 10 days, it said in a statement.

The agency said it filed a money laundering case against the group and its promoters in March after studying a Bengaluru police FIR registered against them in 2020.

”Many homebuyers have filed complaint with the police as well as with the ED alleging that accused entities/persons are involved in money laundering and have induced the prospective buyers with rosily painted schemes, showing misleading brochures, falsification of delivery time lines and window dressing and collected more than Rs 1,000 crore as advance money from thousands of buyers.” ”However, they have not been given possession of their flats even after 7-10 years,” the ED alleged.

The company, it said, offered various ”Ponzi-like schemes which was named as buy-back plan and advance money was collected for the flats/homes.” In some cases, the company has not refunded the amount to the buyers even after clear direction of the Real Estate Regulatory Authority (RERA), it said.

Probe found that the amount ”collected from the buyers by the company which were meant for construction of the projects have been diverted for personal use by the management of the company or for such other fraudulent purposes and hence the project is stalled.” Currently, the group has total outstanding loans of about Rs 5,000 crore from various financial institutions, out of which about Rs 1,000 crore is overdue and some of the loan has been termed non-performing asset (NPA), the ED said.

”The company has cross-collateralised its assets to different financial institutions for taking multiple loans on same assets,” it said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Salman Khan gets another threat, asked to cough up Rs 5 cr

Rahul Gandhi to attend caste census meeting in Hyderabad today

Udupi: Gas cylinder explosion during party causes extensive damage in apartment

Stay Safe Online: Tips to avoid cyber fraud!

FIR against Sanjay Raut’s brother for remarks against Shiv Sena’s woman leader

Kodagu murder case accused escapes from police in Hyderabad

Karnataka Maritime Board announces plans for Mangaluru Water Metro Project

Related Articles More

MRPL offers Rs 1 cr to buy advanced TB testing machines

Mangaluru: Vishwa Konkani Samaroh to be held on Nov 5 and 6

Udupi: Gas cylinder explosion during party causes extensive damage in apartment

Kodagu murder case accused escapes from police in Hyderabad

New software for fast-tracking project approvals: Karnataka Minister Patil

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

MRPL offers Rs 1 cr to buy advanced TB testing machines

Salman Khan gets another threat, asked to cough up Rs 5 cr

Mangaluru: Vishwa Konkani Samaroh to be held on Nov 5 and 6

Canadian cop suspended for attending pro-Khalistan protest outside Hindu temple

Rahul Gandhi to attend caste census meeting in Hyderabad today

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.