ED Raids Mantri Developers: Investigation into Money Laundering and Fund Diversion Intensifies

Bengaluru: The Enforcement Directorate (ED) conducted searches at the offices of Mantri Developers, a prominent Bengaluru-based real estate firm, and at the residences of its founder and Chairman, Sushil Mantri, on Monday. The raids are part of an ongoing investigation into alleged money laundering and the diversion of funds collected from customers for apartment projects.

According to ED officials, more than 10 officials from the agency's Delhi headquarters arrived in the city early in the morning and began inspecting documents at the company's office located on Vittal Mallya Road, as well as at other related premises. The searches are being carried out under the provisions of the Prevention of Money Laundering Act (PMLA).

There have been allegations that funds collected from customers for apartment projects were diverted and invested abroad. In connection with these allegations, the ED has once again carried out searches and is examining the documents as part of its ongoing investigation. Officials are scrutinizing financial records and have seized several documents related to financial transactions for further examination.

Founded in 1999, Mantri Developers has its headquarters in Bengaluru and operates in several cities, including Chennai, Hyderabad, and Pune. The company has undertaken multiple projects in residential, commercial, retail, and other real estate sectors. The ED had earlier conducted searches in connection with the same financial case in 2022.

In 2023, the central agency had attached properties worth around Rs 300 crore as part of its investigation. Mantri Developers is embroiled in major controversies centered on massive project delays, diversion of funds, and legal action, with numerous homebuyers waiting for apartments since 2016.

Founder Sushil Mantri was arrested by the ED and the Criminal Investigation Department (CID) over allegations of money laundering and cheating, with the ED attaching assets worth more than Rs 300 crore. Key projects like Mantri Webcity, Mantri Serenity, and Mantri Energia were delayed for years. Homebuyers reported that money was collected, but construction halted, while funds were allegedly diverted for personal use or other projects.

Sushil Mantri was arrested in 2022 and 2024 for money laundering and cheating. The Karnataka Real Estate Regulatory Authority (KRERA) has ordered refunds to buyers for excessive delays, including a recent directive to refund Rs 2.5 crore in 2025. The official statement is yet to be given by the ED and Mantri Developers regarding the development.