In a significant development, the Enforcement Directorate (ED) has attached fresh assets worth approximately ₹59 crore belonging to real estate company IREO and associates. This action is part of an ongoing money laundering investigation that has been underway for several years.
The ED alleges that IREO and its promoters engaged in fraudulent practices by promising to deliver flats, plots, and commercial spaces to homebuyers. However, they allegedly failed to fulfill these commitments and did not refund the buyers’ money. As a result, land parcels and bank deposits worth ₹58.93 crore belonging to IREO group companies and associates have been provisionally attached under the Prevention of Money Laundering Act (PMLA).
According to the ED, the directors of the company, in collusion with certain individuals, siphoned off the funds collected from homebuyers and diverted them for purposes other than the intended projects. These funds were allegedly sent out of India through buy-back of shares, redemptions, fully convertible debentures (FCDs), loans, and advances to associated entities and individuals. The agency further alleges that excessive incentives and advances were provided to key managerial persons.
The ED estimates that the proceeds of crime identified in this case total ₹1,780 crore. IREO promoter Lalit Goyal and Roop Bansal, promoter of another realty group M3M, have already been arrested by the ED in connection with this matter.
In October 2022, the ED filed two charge sheets and attached assets worth over ₹1,300 crore in this case. The investigation remains ongoing, and further action is anticipated.
