ED Arrests Real Estate Promoter in Rs 300 Crore Gurugram Fraud Case
The Enforcement Directorate (ED) in Gurugram has made a significant arrest in a fraud case that has been shaking the real estate sector. On Wednesday, ED officials apprehended Amit Katyal, the promoter of Angle Infrastructure Pvt. Ltd., in a money laundering case linked to the non-delivery of flats in the 'Krrish Florence Estate' project. The project, located in Sector 70 on a 14-acre parcel of land in Gurugram, has been under scrutiny for years due to multiple scheduled offences and fraudulent activities.
Katyal was produced before the Special Court (PMLA) in Gurugram, which remanded him in six days of ED custody. The ED's investigation was initiated based on FIRs registered by the Gurugram Police and the Delhi Economic Offences Wing (EOW). These complaints alleged that Katyal had been collecting funds from prospective buyers long before obtaining the necessary licence from the Department of Town and Country Planning (DTCP), Haryana.
The total Proceeds of Crime (POC) generated from this fraudulent activity exceeds Rs 300 crore. The project, which was supposed to be a high-end residential complex, has been left incomplete for over a decade. Only three towers have been constructed, but they remain unfinished. This has led to the initiation of insolvency proceedings by a homebuyers’ association, adding to the woes of the affected buyers.
The ED investigation also revealed several fraudulent bookings made by Katyal with third parties in a project meant for Central government employees. Additionally, funds were diverted for other purposes, leading to the project stalling. The probe uncovered that Katyal had alienated a part of the licensed land (2 acres), valued at Rs 130 crore, to a third party at undervalued rates during the insolvency proceedings. This was a clear abuse of the process of law under the Insolvency and Bankruptcy Code (IBC).
Further, the investigation found that significant loans from a public sector bank were diverted through fraudulent transactions, causing the bank a loss of nearly Rs 80 crore. This has raised serious concerns about the regulatory oversight in the real estate sector and the need for stricter enforcement of financial norms.
Amit Katyal is also an accused in multiple FIRs registered by the Gurugram Police and the Delhi EOW. He is accused of employing a similar modus operandi in other projects such as Krrish World (Sector 63, Gurugram) and Province Estate. The ED has stated that further investigation is under progress, and more details are expected to emerge as the case unfolds.
This arrest is a significant step in the fight against financial crimes and real estate fraud. It sends a strong message to other developers and promoters who may be engaging in similar activities. The ED and other law enforcement agencies are expected to intensify their efforts to ensure that justice is served and that the rights of homebuyers are protected.
